PT Bumi Resources Tbk : CONTINUING LA NINA PHENOMENON IN KPC – FLOODING IN SANGATTA

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Website: www.bumiresources.com

Corporate Information

CONTINUING LA NINA PHENOMENON IN KPC - FLOODING IN SANGATTA

Jakarta, 24 March 2022

PT BUMI Resources Tbk ("BUMI" or the "Company") attached information related to the high rainfall due to the La Nina phenomenon resulting in flooding in Sangatta and related to the operations of the business unit, PT Kaltim Prima Coal (KPC).

We thank all our stakeholders for their valuable support and understanding.

For further information, please contact

Dileep Srivastava

Director & Corporate Secretary

PT Bumi Resources Tbk.

Tel	(62-21) 5794 2080
Fax	(62-21) 5794 2070
email	[e-mail]
	www.bumiresources.com

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PRESS RELEASE

Addressing the negative issue on the operations of PT Kaltim Prima Coal (KPC) circulating in the media in relation to floods in Sangatta, we hereby need to make some clarifications:

1. KPC confirms that its management of pit/mine water still complies with the requirements/standards, either in terms of the water quality or water discharge flowing out to the river as the receiving environment. This has been checked directly by the Environmental Agency of East Kutai and samples have been taken in the lay-out point of mine ponds of KPC for laboratory examination. The same applies to the water discharge flowing out to Sengatta River, which is still below the standards, such as the PSS Bendili Pond, where the maximum allowed discharge rate is 10.56m2/second. However, during the floods that occurred on 19-20 March 2022, the rate was only 5.05 m2/second. At J-void Pond, the discharge rate was only 6.12 m2/second from the allowed 15.6 m2/second.
2. Water catchment areas of KPC mines only contributed to 6.06% of total area of Sangata watershed, so that the contribution to formation of water volume from KPC affected areas to Sangatta river is considered "insignificant". For sure, all catchment areas in KPC mines are contained in licensed settling ponds with treatment for the water quality and quantity. For Sangatta watershed, there are a total of seven ponds whose quality standards, water quality and discharge have complied with the quality standards for the pond permits such as Marsawa, Cempaka, PSS, Melawai 2, WQ27D, WQ27F, WQ33.
3. On 18-20 March 2022, there were two conditions triggering the big floods in Sangatta Watershed, which was the very heavy rainfall up to 167 mm/day with the tide reaching over 2.5 meters. This left the heavy rain unable to flow out to the sea, causing floods along the outer boundary of Sangatta River. We monitored that in the outlet of PSS Bendili, the water from the direction of Sangatta River instead flowed to Sungai Bendil, and was held back for quite a long time, which resulted in unusual bigger volume.
4. The assumption that there is high likelihood that the opened areas of KPC have contributed to the increased water volume flowing to the river and therefore has caused the floods during the rain is clearly untrue or inaccurate. We need to straighten things out that all the rainwater falling to the open areas of KPC have been contained in the settling ponds with proper/good control of both water quality and quantity. Along with conducting the management of mine water, KPC is also conducting reclamation of post-mined areas in a progressive manner. Out of 32,542 hectares of land mine, we have performed the reclamation of 13,267 hectares (40.77%). As of 2014, we are always targeting reclamation of above 1000 hectares. This achievement in our reclamation is the biggest of the

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Indonesia's existing mines and on average, from 2014, this accounted for 20% of the reclamation target set by Directorate General of Mineral and Coal.

5. To date, the number of employees of KPC and contractors amount to more than 27,000 and including their families/dependents, the total is around 81,000 persons. The majority of employees live in Sangatta and Bengalon, where we are also consuming the water from Sangatta and Bengalon rivers. With this in mind, we are always maintaining the water quality in Sangatta and Bengalon, just like we maintain/protect our families/ourselves.

Hope this clarifies the information that has been going around in the media.

Sangatta, 23 March 2022

PT Kaltim Prima Coal

Wawan Setiawan

GM External Affairs and Sustainable Development

Email : [e-mail]

Phone : [phone]

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