We, PT Sambaki Tambang Sentosa ("PT STS"), would like to formally respond to the report titled "From Forest to Electrict Vehicles" published by Mighty Earth ("Report"). We take every issue related to the environmental impacts of our mining operations very seriously. Through this response, we aim to address the issues raised in the report and provide clarification as follows:

A. PT STS Business Compliance

PT STS is a company engaged in the mining industry, specifically in the production and sale of nickel. Our operations are conducted in accordance with the Mining Business License for Production Operations [...] issued by the Regent of East Halmahera. [...] PT STS has also obtained an Environmental Approval...

B. Response to Report related to Issues on Deforestation and Environmental Impacts within PT STS operational areas.

In the Report, we note that PT STS has been mentioned several times, particularly to issues of deforestation and the environment, as follows: [...]

We acknowledge that the tables above, highlight the environmental impacts related to our operations, particularly the impact on surrounding forest areas. While we understand the concerns raised, we assure you that PT STS is fully committed to compliance with Indonesian law, particularly Law No. 4 of 2009 regarding Mineral and Coal Mining ("Indonesia Mining Law"), including Articles 2(d) of Indonesia Mining Law. These provisions require all mining activities in Indonesia to be conducted under the principles of sustainability and environmental protection.

As we acknowledge the environmental concerns associated with mining operations within forested areas, we regret the assertion in the report that PT STS's activities are conducted without the necessary permits. To clarify, PT STS has duly obtained the Forest Utilization Permit ("IPPKH"), pursuant to Decree No. SK. 351/1/KLHLK/2020, which is still valid.

The requirement to obtain this permit arises from the fact that the location of PT STS's operation lies within forested areas, as stipulated unter Minister of Environment and Forestry Regulation No. 27 year 2018, which mandates that any non-forestry use of forest areas must be authorized by an IPPKH. This permits authorizes the use of 482.86 hectares of forest land within the Limited Production Forest (Hutan Produksi Terbatas) and Convertible Production Forest (Hutan Produksi yang Dapat Dikonversi) areas at our operational site.

[...]

Therefore, to reiterate, we deeply understand and acknowledge the importance of these concerns, and we are continuously working to improve our practices to minimize environmental impact. Our commitment to preserving the environment remains a priority, and we will continue to comply with all legal and regulatory obligations to ensure sustainable operations.

We remain committed to working with all relevant stakeholders to address any concerns and contribute to the responsible and sustainable development of our operations.

The full response can be read under the link at the top of the page.