Creating Values,
Providing Sustainable Benefits

At Vale Indonesia, we believe that financial soundness is the foundation of sustainability. By doing well as a business entity, we always attempt to enhance our ability to share our success with our stakeholders, including employees, suppliers, contractors, communities and the government.

Vale Indonesia works consistently to contribute to the improvement of people's living standards and strengthen community relations. Vale Indonesia also seeks to improve social investments, respect local cultures, implement a structured action plan and minimize the impact of its operations.

In 2011, Vale Indonesia was expected to provide US$286 million in contributions to the country, including $261 million from taxes, $15 million from non-tax revenue and $10 million from royalties. We also made, directly and indirectly, socio-economic contributions such as the employment of 6,000 local workers and the benefits to our hundreds of partners, local and national contractors.

To improve the quality of life and welfare of the communities in the area of our operation, we have implemented Community Development and Empowerment Programs systematically. Each year, we allocate funds to implement Community Development Programs in the fields of agriculture, education, health, infrastructure, small and medium enterprises, as well as socio-cultural aspects. The opportunity to improve the governance of Community Development Program implementation in the future is perceived to be more beneficial for people.

In general, the economic performance of Vale Indonesia during the year 2010 illustrated a significant increase compared to the year 2009. This occurred due to the realization of a higher average price for nickel and higher sales from an increase in production.

In an effort to boost contractors and cost controls performances, Vale Indonesia initiated the Integrated Contract System Framework (ICSF) in 2007. As of the end of 2011, the number of registered suppliers and local contractors was 359, or 22 percent of the total number of suppliers and contractors registered in Vale. Out of these suppliers and contractors, 61 local firms were awarded contracts in 2010, or 22 percent of 276 entire contractors.

A long-operating experience has always been one of the cornerstones of our operating sustainability. Our record of accomplishment in production, environmental protection and social responsibility demonstrates positive dynamics. This is an opportunity for us to continue operating in a responsible manner in order to provide benefits to our stakeholders.