Mining Principle

How We Do It

The process of mining and smelting of tin is relatively simpler than the process required of other minerals (gold, copper nickel, iron ore, etc) and the steps consist as follow:

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Removal of the overburden covering the tin ore and waste disposal at a proper designated site.

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Extract and transfer the ore to a field processing plant for removal of the impurities of the tin ore using one of two available methods (or both), as follow:

Wet mining, where the ore is pushed into a slurry pit and then pumped directly to the field processing plant.

Dry mining, where the ore is transferred using vehicles (trucks) to the processing plant.

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The field processing plant (known as the “washing plant”) uses high-pressure water to force the ore slurry on the sluice box where the waste material (silica) is then separated by gravity force from the tin ore.

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The smelting process consist of drying the ore in the rotary dryer, mixing the dry ore with anthracite coal (to combine the carbon from the anthracite with the oxygen from the tin ore) and using a diesel-fueled furnace with approximately 1.400 degree Celsius heat power resulting in 99.93% Sn tin ingot, which will be labeled with the MSP Brand, stacked, strapped in one ton bundle and ready for export.

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Throughout the entire process, from the field to the final ingot production, the sample of material will be analyzed and tested in laboratories located in each site to ensure standards are being maintained.

We Are Certified 

ISO 9001:2015

All aspects of our operation are certified in accordance with the highest standards of today.

We follow the industry best practices when it comes to environmental protections and proper waste disposal. PT. Mitra Stania Prima proudly holds an ISO 9001:2015 with RMI standard tin smelter.

In addition to that, PT. Mitra Stania Prima operates a certified ISO 9001:2015 tin smelter and refining facility located in the industrial complex near the city of Sungailiat, Bangka Island. The “MSP Brand” tin ingot is certified as an LME (London Metals Exchange) registered brand.

PROPER Environment (Company Performance Rating Program in Environment Management)

PROPER is an assessment of a company’s environmental management performance that requires a measurable indicator by the Ministry of Environment of the Republic of Indonesia. The purpose of this assessment is to increase the role of companies in environmental management as well as to create stimulant effects in compliance with environmental regulations and to add value to natural resource conservation, energy conservation, and community development. Within the period of 2019 to 2020, PT Mitra Stania Prima received a BLUE PROPER score.

RMAP (Responsible Minerals Assurance Process)

PT. Mitra Stania Prima operates in line with the Responsible Minerals Assurance Process (RMAP) requirements.
RMAP requires companies to be assessed every three years, which we are currently undertaking. To check our latest status, please visit the RMAP website.

ISO 9001:2015
QUALITY MANAGEMENT SYSTEM

BLUE PROPER
2019-2020

Supply Chain Policy

PT Mitra Stania Prima fully supports and committed to making sure our supply chains are free of armed conflicts and serious human rights abuse.

Our policy is to avoid the use of any natural ore of tin which directly or indirectly finances or benefit the armed group in the conflict-affected area in the Democratic Republic of Congo or adjoining countries.

PT Mitra Stania Prima will act on this commitment :

  • Have a management system for OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas.
  • Cooperate with customers to comply with applicable legislation’s requirement such as The U.S. Dodd-Frank Wall Street Reform and Customer Protection Act (July 2010), which encourages legitimate, conflict-free trades of minerals sourced from The Democratic Republic of Congo (DRC) and the Great Lakes Region of Africa.
  • Neither tolerate nor by any mean profit, contribute to assisting or facilitate the commission by any party of:
    a. Any form of torture, cruel, inhuman and degrading treatment.
    b. Any form of forced or compulsory labour, worst forms of labour for child.
    c. Other gross human rights violations and abuses, such as sexual violence.
    d. War crimes or other severe violations of international humanitarian law, crimes against humanity or genocide.
  • Not tolerate any direct or indirect support to non-state armed groups through the extraction, transport, trade, handling or export of minerals.
  • Not tolerate any direct or indirect support from private security which is involved in illegal activities.
  • Not tolerate any bribery and fraudulent misrepresentation of the origin of minerals such as money laundering and non-payment of taxes and royalties to governments.
  • Publicity communicate our ethical and sustainable sourcing policy to our suppliers, customers, employees and investors.

PT Mitra Stania Prima
Sungai Liat , 1 October 2020

Aryo P.S. Djojohadikusumo
Chief Executive Officer

Public Due Diligence Report

INFORMATION

The company name is PT. Mitra Stania Prima, establish on 2004, domiciled in Kawasan IndustriJelitik Sungai Liat Bangka – Indonesia.

This facilities are for processing tin product – ingots from smelting, refining and casting ingot and only process tin ores sourced from own mining concession located in Mapur Kab. Bangka and Kemingking/kepoh Kab. Bangka Tengah.

RMAP ASSESSMENT SUMMARY
PT. Mitra Stania Prima has undergone a RMAP assessment on 30 November 2019. The assessment periode was from 1 January 2018 to 30 November 2019. The assessment was conduct by SCS Global Services The assessment summary report is public.

SUPPLY CHAIN POLICY

PT. Mitra Stania Prima has a policy that follows the OECD Due Deligence Guideline which can be accessed at the following link:

https://msptin.com/wp-content/uploads/2021/04/Supply-Chain-Policy.pdf

MANAGEMENT SYSTEMS

Management structure

PT. Mitra Stania Prima follows through on its commitments in Supply chains policy and an internal procedure for due diligence as:

  1. PT. Mitra Stania Prima Chief Executive Officer Mr. Aryo P.S. Djojohadikusumo is responsible to oversee the due diligence program and risk management design and implementation.
  2. PT. Mitra Stania Prima has assisigned the MR-ISO, Mr. Nazaruddin A Haq and the General Manager Smelter, Mr. Santosa Prasetija as due diligence program managers to coordinate the work of relevant departement: Warehouse, Production and Quality Control. And tasked to ensure that each departement follows their rules and responsibilities to implement the due diligence program and report any red-flag and potential risks identified.

Employee’s performance assessment is to understand role in due dilligence system. Regularly reminded to provide feedback to the due dilligence program, all new staff and the key staff from relevant departements has to refresher training minimum once a year.
If there is an update of the program, additional training must be held.

Any report or feedback on due diligence system will be documented and recorded for follow up action and will be maintained by due diligence program manager.

Internal system of control

PT. Mitra Stania Prima will only consumes tin ore from its own mining concessions in Mapur Kab. Bangka and Kemingking/kepoh Kab. Bangka Tengah, Indonesia. All deliveries have to indicate the source with Delivery Order with number of truck, driver’s name, date of delivery, rough quantity. All tin ores recieved by smelter will be weighed against the delivery order and take a representative sample and weighing.

Throghout the production process, production departement will do an mass balance assesment to ensure the recovery target is met. Warehouse staff are trained to only accept tin ore delivered from their own mines.

PT. Mitra Stania Prima refer to RMI grievance mechanism to collect information from interest parties. All complaints received by the related administrator via email info @msptin.co.id and the website https://msptin.com/ will be reported to the CEO and the manager of the due diligence program to find solutions, take action to handle and identify the related risks.

Record keeping system

In line with Indonesian regulation, smelter will need to keep record for a minimum 5 or 10 years, all records are properly used and safely stored in hardcopy and softcopy where applicable.

RISK IDENTIFICATION

A.  PT. Mitra Stania Prima uses following procedure to identify Conflict-Affected and High-Risk Areas (CAHRAs) and assess red flags:

  1. PT. Mitra Stania Prima only takes or receives tin ore from its own mining concession in Mapur Kab. Bangka and Kemingking/Kepoh Kab. Central Bangka, Indonesia and went through a verification process before being processed. Indonesia has been identified as a risk based on the CAHRA criteria, but the Bangka Belitung Islands are not included in the conflict area.
  2. PT. Mitra Stania Prima has a supplier for a secondary material (anthracite) from Vietnam. Vietnam is not included in the areas identified by CAHRA.
  3. The Global Peace Index provides composite index measuring the peacefulness of countries made up of 23 quantitative and qualitative indicators.
  4. The Fragile States Index (Political Indicator 3: Human Rights and Rule of Law) to measure a country’s vulnerability and assess how it might affect projects on the ground, and continues to be widely used by policy makers, field practitioners, and local community networks.
  5. The Resource Governance Index (RGI) spans a wide range of political, socioeconomic, and development contexts—from emerging producers facing challenges in managing newly discovered resources and uncertainties in energy transitions, to countries with longstanding governance challenges.
  6. All information collected by the company and reviewed against the CAHRA sanctions list, US Dodd-Frank Wall Street Reform and Customer Protection Act (July 2010), Regulation (EU) 2017/821, local laws and internal sourcing requirements.
  7. The procedure will be reviewed once a year.
Resource CAHRA criteria Indicator
Global Peace Index provides composite index measuring the peacefulness of countries made up of 23 quantitative and qualitative indicators OECD Annex II risks: Public or private security forces
• Presence of public or private security forces illegally controlling the mine site 		Indonesia is ranked 42 out of 163 countries. Indonesia has an overall score of 1.783 and a global average of 1.8 with a minimum score of 1 and a maximum score of 5. Where a score of 1 is the best score with a threshold of 3. PT. Mitra Stania Prima will carry out advanced risk management if Indonesia's score has passed the threshold. https://www.visionofhumanity.org/maps/#/
Fragile States Index (Political Indicator 3: Human Rights and Rule of Law) to measure a country's vulnerability and assess how it might affect projects on the ground, and continues to be widely used by policy makers, field practitioners, and local community networks OECD Annex II risks: Serious abuses (torture, cruel, inhuman and degrading treatment; forced labor; worst forms of child labor; sexual violence; war crimes) Risks evaluated with this resource:
• Risks of harm to people
• Political instability or repression
• Institutional weakness
• Insecurity
• Collapse of civil infrastructure
• Widespread human rights abuses
• Violations of national or international law 		Indonesia is ranked 99th out of 179 countries. Indonesia has a total score of 67.6 on a scale of 0 to 120. The worst score is the highest. threshold is at a score of 80. PT. Mitra Stania Prima will carry out advanced risk management if the total score exceeds the threshold. https://fragilestatesindex.org/global-data/
Resource Governance Index (RGI) spans a wide range of political, socioeconomic, and development contexts—from emerging producers facing challenges in managing newly discovered resources and uncertainties in energy transitions, to countries with longstanding governance challenges OECD Annex II risks: Bribery, fraudulent misrepresentation of the origin of minerals, money laundering, non-payment of taxes, fees, and royalties to governments. Risks evaluated with this resource:
• Political, socio-economic, and development 		Indonesia has a total score of 68 on a scale of 0 to 100. The higher the score, the better. threshold is at a score of 45. PT. Mitra Stania Prima will carry out advanced risk management if the score crosses the threshold. https://resourcegovernanceindex.org/data/mining/issue?region=global&years=2017%2C2021

RISK MITIGATION

A. Grievance Mechanism

We ensure that our Report & Complaint Team will take follow up actions upon any harmful complaint to the company. The scope of complaints include the following:

  1. Deviation from the prevailing laws and regulations
  2. Misuse of position for other interests outside the company
  3. Extortion
  4. Cheating
  5. Conflict of interest
  6. Customer complaints (either from buyers or from suppliers/vendors)

Reporting mechanism

  1. Reporters
  2. Reporting supporting data
  3. Submission of complaint by reporters

The reporter makes a complaint and sends it via:

Website: msptin.co.id

Email: grievance@msptin.co.id

We carry out a follow-up process for complaints:

  1. The report & complaint team receives complaints and records them.
  2. Reports submitted without the identity of the reporter will be processed following a review of the evidence presented, to confirm it is correct.
  3. The report & complaint team provides feedback to the reporter and forwards the violation report to the management.
  4. The management receives a violation report from the report & complaint team, which is reviewed together to find solutions to the report.
  5. If the report is proven to be accurate, then the management will ask the related parties to complete the violation report immediately.
  6. If the report is not proven or valid, the violation report will be closed.

The company protects whistleblowers as follows:

  1. The company guarantees the confidentiality of the reporter’s identity.
  2. The company provides full protection for whistleblowers from all forms of threats, intimidation, or other unpleasant actions from any party.
  3. The company protects parties who help provide information related to the complaint.
  4. Sanctions for false reporting if the submitted reporting is not based on good faith, has no basis, contains elements of false evidence, slander, defamation, then the reporter may be subject to sanctions under the applicable provisions.

CAHRAs

PROCEDURE TO IDENTIFY CAHRAs

According to the OECD Due Diligence Guidance for Responsible Supply Chain of Materials from Conflict-Affected and High Risk Areas.

Conflict-Affected and High-Risk Areas (CAHRAs) are characterised by the presence of armed conflict , widespread violance or other risk of harm  to people such as in the Democratic Republic of Congo or adjoining countries.

This company is commited in supply chains policy and has developed an internal procedure for due dilligence with aspects:

  • The PT. Mitra Stania Prima‘s Chief Executive Officer, Aryo PS Djojohadikusumo, is responsible to oversee the due dilligence program and risk management design and implementation.
  • PT. Mitra Stania Prima has assigned MR ISO, Mr. Nazaruddin A. Haq and Smelter General Manager, Mr. Santosa Prasetija, to coordinate the work of Procurement, Recieving and Warehousing, Production , Quality Control Department respectly to follow up their rules and responsibilities to implement the due dilligence program, report any red flag and potential risk identified.
  • PT. Mitra Stania Prima conducts due dilligence management system training to all employees and to attend refresher once a year.
  • Any report must be documented and recorded for follow up if needed.
  • As regulation in Indonesia prohibits to take tin ores from other mine, tin ores must be taken from own concessions.
  • Warehouse staffs are trained to accept only tin ores delivered from their own mines.

PT. Mitra Stania Prima uses procedures to identify Conflict Affected and High Risk Areas (CAHRA) and assess red flags:

  • PT. Mitra Stania Prima only takes or receives tin ore from its own mining concession in Mapur Kab. Bangka and Kemingking/Kepoh Kab. Central Bangka, Indonesia and went through a verification process before being processed. Indonesia has been identified as a risk based on the CAHRA criteria, but the Bangka Belitung Islands are not included in the conflict area.
  • PT. Mitra Stania Prima has a supplier for a secondary material(anthracite) from Vietnam. Vietnam is not included in the areas identified by CAHRA.
  • The Global Peace Index provides composite index measuring the peacefulness of countries made up of 23 quantitative and qualitative indicators.
  • The Fragile States Index (Political Indicator 3: Human Rights and Rule of Law) to measure a country’s vulnerability and assess how it might affect projects on the ground, and continues to be widely used by policy makers, field practitioners, and local community networks.
  • The Resource Governance Index (RGI) spans a wide range of political, socioeconomic, and development contexts—from emerging producers facing challenges in managing newly discovered resources and uncertainties in energy transitions, to countries with longstanding governance challenges.
  • All information collected by the company and reviewed against the CAHRA sanctions list, US Dodd-Frank Wall Street Reform and Customer Protection Act (July 2010), Regulation (EU) 2017/821, local laws and internal sourcing requirements.
  • The procedure will be reviewed once a year.
Resource CAHRA criteria Indicator
Global Peace Index provides composite index measuring the peacefulness of countries made up of 23 quantitative and qualitative indicators OECD Annex II risks: Public or private security forces
• Presence of public or private security forces illegally controlling the mine site 		Indonesia is ranked 42 out of 163 countries. Indonesia has an overall score of 1.783 and a global average of 1.8 with a minimum score of 1 and a maximum score of 5. Where a score of 1 is the best score with a threshold of 3. PT. Mitra Stania Prima will carry out advanced risk management if Indonesia's score has passed the threshold. https://www.visionofhumanity.org/maps/#/
Fragile States Index (Political Indicator 3: Human Rights and Rule of Law) to measure a country's vulnerability and assess how it might affect projects on the ground, and continues to be widely used by policy makers, field practitioners, and local community networks OECD Annex II risks: Serious abuses (torture, cruel, inhuman and degrading treatment; forced labor; worst forms of child labor; sexual violence; war crimes) Risks evaluated with this resource:
• Risks of harm to people
• Political instability or repression
• Institutional weakness
• Insecurity
• Collapse of civil infrastructure
• Widespread human rights abuses
• Violations of national or international law 		Indonesia is ranked 99th out of 179 countries. Indonesia has a total score of 67.6 on a scale of 0 to 120. The worst score is the highest. threshold is at a score of 80. PT. Mitra Stania Prima will carry out advanced risk management if the total score exceeds the threshold. https://fragilestatesindex.org/global-data/
Resource Governance Index (RGI) spans a wide range of political, socioeconomic, and development contexts—from emerging producers facing challenges in managing newly discovered resources and uncertainties in energy transitions, to countries with longstanding governance challenges OECD Annex II risks: Bribery, fraudulent misrepresentation of the origin of minerals, money laundering, non-payment of taxes, fees, and royalties to governments. Risks evaluated with this resource:
• Political, socio-economic, and development 		Indonesia has a total score of 68 on a scale of 0 to 100. The higher the score, the better. threshold is at a score of 45. PT. Mitra Stania Prima will carry out advanced risk management if the score crosses the threshold. https://resourcegovernanceindex.org/data/mining/issue?region=global&years=2017%2C2021

EXTERNAL GRIEVANCE AND REPORTING MECHANISMS

A. Scope of Complaints

The report & complaint team will follow up actions that can harm the company. The scope of complaints include the following:

  1. Deviation from the prevailing laws and regulations
  2. Misuse of position for other interests outside the company
  3. Extortion
  4. Cheating
  5. Conflict of interest
  6. Customer complaints (either from buyers or from suppliers/vendors)

B. Reporting Mechanism

  1. Reporters
    • Reporters are required to provide personal data such as name, address, mobile number and email.
    • Include supporting documents for reporting.
    • For violation reporting submitted by stakeholder representatives, other additional documents are required:
      1. Proof of identity of stakeholders and stakeholder representatives in the form of photocopies,
      2. Power of attorney from stakeholders to stakeholder representatives stating that stakeholders grant authority on behalf of stakeholders,
      3. There is a document attachment stating that the party filing the violation report has the right to represent the institution or legal entity if the stakeholder is an institution or legal entity.
    • Written violation report without an identity may be made, but the reporter is required to include a copy of the documents related to the violation report to be submitted.
  2. Reporting Supporting Data
    • The time of the violation, explaining when the violation occurred in the form of day, week, month or year.
    • The location of the violation, including the name of the place where the violation occurred.
    • The parties involved who are responsible for the violation.
    • Whether the violation had occurred before and was reported to other parties.
  3. Submission of Complaints by reporters
    • Reporting must be done in good faith, not for personal or retaliatory purposes.
    • Reporting is made for the common interest of both the company and stakeholders.

The reporter makes a complaint and sends it via:

Website: msptin.co.id

Email:  grienvance@msptin.co.id

C. Follow-up Process for Complaints

  1. The report & complaint team receives complaints and records them.
  2. Reports submitted without the identity of the reporter will be processed following a review of the evidence presented, to confirm it is correct.
  3. The report & complaint team provides feedback to the reporter and forwards the violation report to the management.
  4. The management receives a violation report from the report & complaint team, which is reviewed together to find solutions to the report.
  5. If the report is proven to be accurate, then the management will ask the related parties to complete the violation report immediately.
  6. If the report is not proven or valid, the violation report will be closed.

D. Whistleblower Protection Policy

The company protects whistleblowers as follows:

  1. The company guarantees the confidentiality of the reporter’s identity.
  2. The company provides full protection for whistleblowers from all forms of threats, intimidation, or other unpleasant actions from any party.
  3. The company protects parties who help provide information related to the complaint.
  4. Sanctions for false reporting if the submitted reporting is not based on good faith, has no basis, contains elements of false evidence, slander, defamation, then the reporter may be subject to sanctions under the applicable provisions.

 

 

PT Mitra Stania Prima
Sungai Liat , 12 October 2020

Aryo P.S. Djojohadikusumo
Chief Executive Officer

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