In the aftermath of a devastating Morowali smelter workplace accident, the industrial landscape is marred by the harsh realities of occupational hazards. Within the heart of the smelting facility, a momentary lapse in safety measures has given rise to a cascade of consequences. Emergency responders and fellow workers converge amidst the chaos, grappling with the profound impact on lives and the workplace. This tragic incident serves as a poignant reminder of the imperative need for rigorous safety protocols in industrial settings. It sparks urgent conversations about the balance between productivity and employee well-being, prompting a collective reevaluation of safety cultures and procedures. The smelter workplace accident becomes a rallying point for change, advocating for a future where the crucible of industry remains a site of creation, not catastrophe. Find out more our insights about this topic in our Legal Brief publication.

1. Legal Brief
K3 Compliance for Smelter Usage in
Nickel Mining: A Look at Morowali
Smelter Case

2. WHAT IS A SMELTER?
What is a
Smelter
The use of this term absorbs the origin of the English word, namely
smelting which means melting. The smelting process itself is in a
metal mineral mining process. This facility has an important role in
the process of separating impurities from metals or carrying out
refining processes.
Through the smelting process with a smelter, the metal content can
be increased. When the value of the content increases, the selling
value of metals will also increase among other commodities, so that
consumers and producers can make profit.
How a Smelter Work
Generally, this tool works by ore reduction, where the result will be several important products. The results of ore reduction can be hydrogen, active
metals, and so on. In supporting the reduction process, the active substances involved depend on the type of metal being reduced. The higher the
metal activity level, the more difficult the reduction process will be. Conversely, if the level of activity is lower, the reduction process can also be
easier. Examples of metals with high levels of activity are magnesium and aluminium, while metals with low levels of activity are gold and copper.
In the middle between the low and high levels, there is an intermediate level. At this intermediate level, the types of metals are tin, iron, and nickel.
The process of smelting intermediate metals using a smelter is not difficult, but not easy either. In essence, how this tool works depends on the type
of metal that goes into the tool. The lower the active content, the easier the smelting process. Meanwhile, the higher the activity level, the more
difficult the smelting process.
A H R P L e g a l B r i e f
Preparation
Before smelting
iron, the ore is
frequently crushed
and grounded to
increase its surface
area, improving the
chemical
interaction between
the iron ore and the
reducing agent. In
certain situations,
the iron ore is
concentrated using
procedures like
flotation or
magnetic
separation to
eliminate impurities
and enhance metal
content.
Roasting
A primary process
known as roasting
may be necessary
for sulphide ores. It
requires heating
iron ore in the
presence of oxygen
to convert metal
sulfides into metal
oxides and
releasing sulfur
dioxide gas. This
improves the
overall smelting
efficiency.
Smelting
Furnace
Depending on the
kind of metal being
extracted and the
specific heat needs
of the process, the
prepared iron ore is
fed into a furnace;
this can be a blast
furnace, electric arc
furnace or
reverberatory
furnace. Depending
on the melting point
of the metal, the
furnace is then
heated to
temperatures
ranging from 1,200
to 1,600°C (2,192
to 2,912°F).
Reduction
The high
temperature in the
furnace allows the
metal oxides to
react with the
reducing agent
(usually charcoal or
coke), resulting in
the formation of
metallic elements
(i.e. metallic iron)
as well as carbon
dioxide or carbon
monoxide. Because
of its increased
density, molten
metal falls to the
bottom of the
furnace, while
lighter impurities,
slag, float on top.
Separation
The molten metal
and slag are
extracted separately
from the furnace. To
eliminate any
residual impurities
and materials, the
metal might be
refined further using
methods such as
electrolysis or
chemical leaching.
Casting
After that, the purified
metal is placed into
moulds or castings to
cool and harden. The
resultant ingots,
billets, or slabs are
utilized as raw
materials in the
production of a
variety of metal
goods.
To guarantee efficient
and successful
extraction of the
required metal, it is
critical to monitor and
manage parameters
such as temperature,
pressure and reactant
composition during
smelting.
NOTE
In accordance with Article 102 and Article 103 of Law No. 4/2009 as amended by and partially revoked by Law No. 6/203 states that the Holder of Izin Usaha Pertambangan and
Izin Usaha Pertambangan Khusus must increase the added-value of mineral and/or coal resources in the implementation of mining, processing and refinery, as well as in the
exploitation of minerals and coal and they must do so domestically.
1 2 3 4 5 6
https://www.metalsupermarkets.com/zsmelting-metal/
https://www.sucofindo.co.id/en/articles/mineral-mining-sector/inspection-audit-
services-en-9/mining-smelters-know-the-functions-benefits-and-how-it-works/

3. Case Facts
A H R P L e g a l B r i e f
Chronology
On 24 December 2023, the Technical Team of PT Indonesia Tsingshan Stainless Steel (“PT ITSS”) made up of local and foreign
workers was doing maintenance work for Smelter Facility Number 41 located at the 2nd (second) and 3rd (third) floor of the
building. The maintenance was for the installments of plates to the smelter machinery.
At 0.5.30 am Central Indonesia Time (Waktu Indonesia Tengah) ("WITA"), the Smelter Facility caught fire, and a total of 59
Workers was either fatally injured or suffer burns from the fire. The fire was eventually put out at 09.10 am WITA.
At the time of maintenance, the smelter was not in operation however, there was still hot liquids seeped out of the smelter came
into contact with flammable materials causing fire.
Casualties
Status Number of Casualties Total
Injured 38 38
Deaths
Indonesian 13
21
Chinese 8
Accumulative Total 59
PT Indonesia Tsingshan Stainless Steel
Company Profile
Location PT Indonesia Morowali Industrial Park, Central Sulawesi
Holding Company Tsingshan Holding Group Company Limited.
Business Sector Metal mineral processing and stainless-steel production.
Production Output 1.000.000 Nickel Pig Iron Tones per year
The Morowali Case as Reported from the Media
https://www.detik.com/sulsel/berita/d-7122799/kasus-ledakan-smelter-pt-itss-morowali-tewaskan-21-pekerja-naik-penyidikan
https://www.bbc.com/indonesia/articles/cek524d75zmo

4. A H R P L e g a l B r i e f
Occupational Safety and Health (Keselamatan dan Kesehatan Kerja) ("K3"), encompasses all activities aimed at ensuring and
protecting the safety and health of workers through efforts to prevent work-related accidents and illnesses.
Art. 1 (2) Government Regulation No. 50/2012
The Occupational Safety and Health Management System (Sistem Manajemen Keshehatan dan Keselamatan Kerja) ("SMK3"), is
a part of the overall company management system aimed at controlling risks associated with work activities to create a safe,
efficient, and productive workplace.
Art. 1 (1) Government Regulation No. 50/2012
Purpose of SMK3
• Enhancing the effectiveness of planned, measurable, structured, and integrated occupational safety and health protection;
• Preventing and reducing work-related accidents and illnesses by involving management, workers, and/or labour unions;
• Creating a workplace that is safe, comfortable, and efficient to promote productivity.
Art. 2 Government Regulation No. 50/2012
Purpose of K3
Maintaining a good temperature and humidity level.
Providing adequate air circulation.
Maintaining cleanliness, health, and order.
Achieving harmony between labour, tools,
environment, methods, and processes.
Securing and facilitating the transportation of people,
animals, plants, or goods.
Securing and maintaining all types of buildings.
Securing and facilitating loading and unloading work,
treatment, and storage of goods.
Preventing exposure to hazardous electrical
currents.
Adjusting and improving safety measures for tasks
with an increased risk of accidents.
Art. 3 Law No. 1/1970
Preventing and reducing accidents.
Preventing, reducing, and extinguishing fires.
Preventing and reducing the risk of explosions.
Providing opportunities or means for self-rescue
during fires or other hazardous events.
Aiding in the event of accidents.
Providing personal protective equipment for workers.
Preventing and controlling the generation or spread
of temperature, humidity, dust, dirt, smoke, vapors,
gases, wind gusts, weather conditions, light, or
radiation, as well as sound and vibration.
Preventing and controlling the onset of work-related
diseases, both physical and psychological,
poisoning, infections, and transmission.
Obtaining sufficient and appropriate illumination.
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Occupational Safety and Health in General (K3) and Occupational
Safety and Health Management System (SMK3) (1/3)

5. a. Results of the initial review;
b. Identification of potential hazards, risk assessment, and
control;
c. Legal regulations and other requirements; and Available
resources.
A H R P L e g a l B r i e f
Company Obliged to Implement SMK3
a. Conducting an initial review of occupational safety and
health conditions, including:
i. Identification of potential hazards, risk assessment, and
control;
ii. Comparison of occupational safety and health
implementation with better-performing companies and
sectors;
iii. Review of cause-and-effect of hazardous incidents;
iv. Compensation and disturbances, as well as previous
safety-related assessments;
v. Assessment of the efficiency and effectiveness of
provided resources.
b. Paying continuous attention to improving occupational
safety and health management performance;
c. Considering input from workers and/or labour unions.
Art. 7 (2) Government Regulation No. 50/2012
Establishment of Occupational
Safety and Health Policy.
K3 Planning
K3 Plan Execution
a. Control measures;
b. Design and engineering;
c. Procedures and work instructions;
d. Delegation of partial job implementation;
e. Purchase/procurement of goods and services;
f. Final products;
g. Efforts to address emergency accidents and industrial
disasters;
h. Plans for emergency response and recovery;
i. Appointing human resources with job competence and
authority in the field of occupational safety and health (K3);
i. Involving all workers; Creating occupational safety and
health guidelines to be adhered to by all workers,
individuals other than workers within the company, and
other relevant parties;
j. Establishing information procedures;
k. Establishing reporting procedures; and
l. Documenting all activities.
Art. 11 (2) Government Regulation 50/2012
Occupational Safety and Health in General (K3) and Occupational
Safety and Health Management System (SMK3) (2/3)
Art. 5 Government Regulation No. 50/2012
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Employ at least 100 employees Has high danger levels
SMK3 Implementation
Art. 9 (3) Government Regulation No. 50/2012
The companies that meets the following criteria must implement SMK3:

6. Evaluation and improvement of SMK3 Performance
Employers are required to conduct a review.
The review is carried out on policies, planning, implementation, monitoring, and
evaluation.
The results of the review are used for improvement and performance enhancement.
Improvement and performance enhancement may be implemented in case of:
i. Changes in laws and regulations;
ii. Demands from relevant parties and the market;
iii. Changes in products and company activities;
iv. Changes in the organizational structure of the company;
v. Advances in science and technology, including epidemiology;
vi. Findings from workplace accident studies;
vii. Reporting; and/or
viii. Input from workers. Art. 15 Government Regulation No. 50/2012
.
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A H R P L e g a l B r i e f
K3 Performance Supervision and Evaluation
Occupational Safety and Health in General (K3) and Occupational
Safety and Health Management System (SMK3) (3/3)
Employers are obligated to monitor and evaluate the performance of occupational safety
and health (K3).
Monitoring and evaluating K3 performance through examination, testing, measurement,
and internal audits of the Occupational Safety and Health Management System (SMK3)
are carried out by competent human resources.
In the event that a company lacks the resources to monitor and evaluate K3
performance, it may engage the services of third parties.
The results of monitoring and evaluating K3 performance are reported to the employer.
The results of monitoring and evaluating K3 performance are used to implement
corrective actions.
The implementation of monitoring and evaluating K3 performance is carried out in
accordance with the provisions of laws and/or standards.
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Art. 14 Government Regulation No. 50/2012

7. K3 in the mining industry is regulated by the Regulation of The Minister of Energy and Mineral Resources of The Republic of
Indonesia Number 26 of 2018 on The Implementation of Good Mining Principles and the Supervision of Minerals and Coal Mining
(“Minister of EMR Regulation No. 26/2018”) and the Minister of Energy and Mineral Resources of the Republic of Indonesia Decision
Number 1827 K/30/MEM/2019 of 2019 on Good Mining Technic Implementation Guide (“Minister of EMR Decision No. 1827
K/30/MEM/2018”).
A H R P L e g a l B r i e f
• Consist of risk management, safety
program (prevention of accident, fire,
and other), education and training of
occupational safety, emergency
condition management, occupational
safety inspection, and accident
prevention and investigation;
• Consist of worker/labor health
program, hygiene and sanitation,
ergonomic, food, beverages
management, and nutrient and
diagnosis of work-related diseases;
• Consist of company regulation,
measurement, assessment, and
control of the work environment
condition.
• Consist of system and the
implementation of maintenance of
facilities, infrastructure, installation,
and mining equipment;
• Consists of installation security;
• Consists of a competent technical
worker in operational safety sector;
• Consist of feasibility of the
facilities, infrastructure, installation,
and processing and/or refinery
equipment by implementing
feasibility testing and maintenance;
and;
• Consists of Processing and/or
refinery facilities safety.
Good mining principles for processing and/or refinery activities
as referred to above shall consist of:
• Processing and/or refinery principles; and
• Processing and/or refinery business governance.
Art. 4 (2) Minister of EMR Regulation No. 26/2018
Processing and/or refinery principles as referred to above cover the implementation of the following aspects:
• Technical activities of processing and/or refinery;
• Processing and/or refinery safety;
• Environment and post-operational management; and
• Minerals and coal conservation.
Processing and/or business governance as referred to above covers the implementation of the following aspects:
• Marketing;
• Finance;
• Data management;
• Utilization of goods, services, and technology;
• Development of mining technical worker;
• Social and environmental responsibility; and
• The amount, type, and quality of processing and/or refinery business products.
The holder of IUP for special operation
production for minerals and coal processing
and/or refinery in implementing the
processing and/or refinery safety provisions
must:
• Provide all equipment, device, personal
protective equipment, facility, personnel,
and required cost for the implementation
of safety provisions in Processing and/or
refinery; and
• Establish and appoint the organization for
processing and/or refinery safety
department based on the consideration of
the number of worker, nature, or working
area.
Processing and/or refinery safety provisions
consist of:
a. Processing and/or refinery occupational
safety; and
b. Processing and/or refinery operation
safety.
Art. 4 (1) and (2) of Minister of EMR
Regulation No. 26/2018
Processing and/or Refinery
Occupational Safety and Health
Processing and/or Refinery
Operational Safety
Art. 16 (4) and (5) of Minister of EMR Regulation No. 26/2018
Art. 4 (3) and (4) Minister of EMR Regulation No. 26/2018
The holder of IUP special Operation for processing and/or
refinery in processing and/or refinery activities must implement
good mining principles.
Art. 4 (1) Minister of EMR Regulation No. 26/2018
K3 COMPLIANCE IN SMELTER USAGE (1/2)

8. K3 COMPLIANCE IN SMELTER USAGE (2/2)
A H R P L e g a l B r i e f
Appendix III of the Minister of EMR Decision
No. 1827 K/30/MEM/2018
Aspects:
• Risk management consisting of
communication and consultation,
contextual set, danger
identification, risk assessment
and handling, and overseeing
and review;
• Work safety program;
• Work safety education and
training;
• Work safety campaign;
• Work safety administration;
• Emergency situation
management;
• Work safety inspection;
• Accidents and dangerous event
investigation.
Work safety management consist of:
• Identification and assessment of
potential emergency;
• Emergency mitigation by taking
into consideration the emergency
assessment;
• Emergency readiness by
preparing resources, equipment,
as well as qualified individuals to
ensure that emergencies are
detected as early as possible;
• Emergency response team that is
ready to mitigate any emergency;
• Emergency recovery team to
recover any loss/damage,
investigate the emergency, loss
assessment, location clearing,
recovery operation, and report.
Mining and Processing and/or
Refinery Work Safety
Work Environment
Mining and Processing and/or
Refinery Work Health
Aspects:
• Work health program;
• Hygiene and sanitation;
• Ergonomic management;
• Workers’’ Food, beverage, and
nutrient management;
• Work-related illness diagnosis and
checkups.
Work health management are done to
prevent and mitigate workers’ work-
related illness. Checkups are done at
the beginning of employment, yearly
checkups at least once a year, special
checkups are done for specific work,
and final checkup when the
employment is over.
To ensure healthy working
environment, hygiene and sanitation
must be sufficiently facilitated.
Workers Food, beverage, and nutrient
must also be well managed in
consideration of the balance diet of
the workers.
Aspects:
• Dust management;
• Noise management;
• Vibration management;
• Lighting management;
• Air quantity and quality
management;
• Work climate management;
• Radiation management;
• Chemical factor management;
• Biological factor management;
• Work environment cleanliness
management.
Equipment and Machinery
Maintenance
Equipment and Machinery Maintenance
consist of:
• List of equipment and machinery;
• Identification of the type and
characteristics required for the
maintenance of equipment and
machinery;
• Arranging and setting up maintenance
schedule and program;
• Maintaining and servicing equipment
and machinery;
• Evaluation of maintenance and
servicing.
Appendix III of the Minister of EMR Decision
No. 1827 K/30/MEM/2018
Appendix III of the Minister of EMR Decision
No. 1827 K/30/MEM/2018
Appendix III of the Minister of EMR Decision
No. 1827 K/30/MEM/2018
K3 Compliance in Mining
and Processing and/or
Refining Minerals and Coal

9. Scope
Mining Safety Management System (“SMKP”) consist of Health and Work Safety (“K3”) AND Operational Safety (“KO”).
SMKP implementation is made up of making regulation, planning, organization and personnel, implementation, supervision,
evaluation, and follow ups, documentation, and management evaluation and performance improvement.
A H R P L e g a l B r i e f
Regulation
1
In making the regulation, business owners
must consider early evaluations and input
from the workers. The regulation must
contain the company’s vision, mission,
and goals as well as its commitment to
implementing Mining K3 and KO. The
finalized regulation must then be
communicated in an orderly manner to the
worker and those who are let in by the
Technical Head of Mining (“KTT”).
Planning
In drafting SMKP, the following things
must be considered: preliminary
assessment, risk management (risk
communication and consultation, risk
contextual set, danger identification and
risk assessment, and risk management),
identification and compliance to relevant
regulation, settlement of goals, aim, and
program, and work plan, budgeting, and
cost by obtaining the approval of relevant
minister or governor.
Organization and Personnel
Implementation
Implementation aspects consist of:
• Operational management
implementation;
• Work environment management
implementation;
• Work health management
implementation;
• Mining KO management
implementation;
• Explosives and explosive materials
management;
• design and engineering system
determination;
• Purchase system determination;
• Mining services company supervision
and management;
• Emergency management;
• First aid availability and preparation in
case of emergency;
• Safety beyond work implementation.
Supervision, Evaluation,
and Follow Ups
To assess whether the implementation of
SMKP is successful, evaluation must be
done based on:
• Performance supervision and
measurement;
• Mine safety implementation inspection;
• Legal compliance evaluation;
• Accidents, dangerous events, and work
related illness investigation and track
record;
• SMKP implementation internal audit;
• Plan for improvement and follow-up
actions.
Documentation
In documenting, SMKP consists of:
• Drafting Mining SMKP Manual;
• Document control;
• Finalizing document types and records.
Management Evaluation and
Performance Improvement
Appendix IV of the Minister of EMR Decision No.
1827 K/30/MEM/2018
Appendix IV of the Minister of EMR Decision No.
1827 K/30/MEM/2018
Appendix IV of the Minister of EMR Decision No. 1827 K/30/MEM/2018
Appendix IV of the Minister of EMR Decision No.
1827 K/30/MEM/2018
Appendix IV of the Minister of EMR Decision No.
1827 K/30/MEM/2018
Appendix IV of the Minister of EMR Decision No.
1827 K/30/MEM/2018
Appendix IV of the Minister of EMR Decision No.
1827 K/30/MEM/2018
SMKP COMPLIANCE IN SMELTER USAGE
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In organizing Organization and
Personnel, the following things must be
considered:
• Organization structure with the
inclusion of mining safety personnel;
• Appointment of KTT;
• Formation of K3 and KO;
• Appointment of operational and
technical supervisor;
• Appointment of competent technical
worker;
• Formation and settlement of mining
safety committee;
• Appointment of emergency team;
• Personnel selection and placement;
• Implementation of work competency
education and training;
• Implementation of mining safety
communication;
• Management of mining safety
administration.
To assess improvements and needs for
change in SMKP, the following must be
done:
• Review of the results of the follow-up
plan for improvement may be used as
a basis for management in
determining policies on the mining
safety performance improvement
process;
• Management review is led by the
highest management of the permit
holder; and
• Assessment is conducted periodically
at least once a year, and the results
are documented.

10. A H R P L e g a l B r i e f
Smelter functions to increase the metal content. When the value of the content increases, the selling value of metals
will also increase among other commodities, so that consumers and producers can make profit.
In accordance with Article 102 and Article 103 of Law No. 4/2009 as amended by and partially revoked by Law No.
6/203 states that the Holder of Izin Usaha Pertambangan and Izin Usaha Pertambangan Khusus must increase the
added-value of mineral and/or coal resources in the implementation of mining, processing and refinery, as well as in
the exploitation of minerals and coal and they must do so domestically.
K3 COMPLIANCE
• Consist of system and the implementation of maintenance of facilities, infrastructure, installation, and mining
equipment;
• Consists of installation security;
• Consists of a competent technical worker in operational safety sector;
• Consist of feasibility of the facilities, infrastructure, installation, and processing and/or refinery equipment by
implementing feasibility testing and maintenance; and
• Consists of Processing and/or refinery facilities safety.
SMKP COMPLIANCE
Mining Safety Management System (“SMKP”) consist of Health and Work Safety (“K3”) AND Operational Safety
(“KO”). SMKP implementation is made up of making regulation, planning, organization and personnel,
implementation, supervision, evaluation, and follow ups, documentation, and management evaluation and
performance improvement.
CONCLUSION
In accordance with Article 102 and Article 103 of Law No. 4/2009 as amended by and partially revoked by Law No. 6/203 states that the
Holder of Izin Usaha Pertambangan and Izin Usaha Pertambangan Khusus must increase the added-value of mineral and/or coal resources
in the implementation of mining, processing and refinery, as well as in the exploitation of minerals and coal and they must do so domestically.

11. We will continue to follow the developments on this topic and provide additional information as it
becomes available. If you have any questions on this topic, please contact:
Muhammad Sakti H. Tambunan
sakti@ahrplaw.com
Adnan
adnan@ahrpaw.com
Christian Chandra Lim
christian@ahrplaw.com
This publication has been prepared by AHRP for educational and informational purposes only. The information contained in this publication is not
intended and should not be construed as legal advice. Due to the rapidly changing nature of law, AHRP makes no warranty or guarantee
concerning the accuracy or completeness of this content. You should consult with an attorney to review the current status of the law and how it
applies to your circumstances before deciding to take any action.
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