Indonesia's Nickel Industry Not Environmentally Friendly, JATAM Warns

TEMPO.CO, Jakarta - Mining Advocacy Coordinator of non-governmental organization Mining Advocacy Network (JATAM) Melky Nahar claimed that there are alleged environmental violations across nickel mining sites in Indonesia. Areas that are believed to suffer the most from those damages are at Obi and Wawonii Islands located in North Maluku. 

“Lands owned by locals were seized. Sea water has also been polluted that greatly affects the livelihood of fishermen,” Melky said on Friday, June 16, 2023. 

According to Jatam's findings, several rivers on Obi Island were polluted by mining waste, which they claims is backed by a previous study. A team from the Guardian team tested a water sample in Kawasi in February back in 2022 and discovered it contained a fairly high carcinogenic substance (Cr6), which is around 60 parts per billion. 

There are a number of nickel mining companies operating in the aforementioned region which include PT Halmahera Lygend, PT Megah Surya Pertiwi, PT Halmahera Jaya Feronikel, and PT Trimegah Bangun Persada. The majority of shares in these companies are owned by the Harita Group, a company engaged in the natural resources sector.

As of Friday, June 16, PT Trimegah Bangun Persada through its associated entity, PT Halmahera Persada Lygend (PT HPL) conducted its inaugural nickel sulfate export with a total of 5,584 tons of nickel sulfate are ready to be shipped to China. This nickel sulfate is sourced from the company’s mineral refining operations at Obi Island. 

The company targets nickel sulfate exports of up to 240,000 tons annually, which is in accordance with the production capacity of the refinery plant.

The JATAM representative urged everyone to look more critically at the condition of the nickel mining industry in Indonesia, especially regarding its alleged role in environmental damage. He went as far as to assert to the global market that Indonesia’s nickel is not produced ‘cleanly’ as the process chain allegedly does not meet proper environmental, social, and governance (ESG) aspects.

Up until the publication of this news piece, PT Trimegah Bangun Persada Corporate Secretary Franssoka Y Suwarwi and Corporate Communications Anie Rahmi had not responded to Tempo's request for confirmation in relation to JATAM's statement.

However, Harita Nickel had previously denied the environmental watchdog's accusations. 

Harita Nickel's Corporate Affairs Manager, Anie Rahmi, said that the company always puts forth the best mining practices by referring to the Decree of the Minister of Energy and Mineral Resources No.1827/2018 concerning the Guidelines for Implementing Good Mining Engineering Principles.

"We are the first company to carry out mineral conservation, which means reducing rock waste to be used as a mineral resource for electric car battery raw materials," said Anie.

Anie denied the notion that PT Trimegah Bangun Persada had utilized rivers to dump mining waste and claims that the company's nickel ore has been disposed of in dry stacking, a waste handling method that uses the principle of high-pressure filtration to separate solids from liquids.

She also denied the notion that PT Trimegah Bangun Persada had forcefully taken over land areas owned by local residents. "The entire Harita Nickel area on Obi Island which is currently operating is located in a forest area, both ‘production forest’ and ‘conversion production forest.’ Harita holds a lease-to-use forest area permit for each land clearing,” she said.

AMY HEPPY

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