Since 2010, Indonesian company Harita Group has operated a nickel mining operation on Obi Island in Indonesia through its subsidiary Harita Nickel. Harita Group expanded its operations with the help of Chinese companies in both 2015 and 2021 (the second expansion was powered by a newly constructed coal plant), which has led to more serious environmental impacts.

Particularly troubling is the waste produced by the HPAL (high-pressure acid-leaching) process of nickel processing, which produces 120 tons of waste for each ton of nickel produced. Local residents have alleged that such waste has poisoned water, killed vegetation, and made agriculture and especially fishing impossible, as well as threatening health through the release of a compound called Chromium-6.

Harita Group and its Chinese partners have responded with denials regarding most of the allegations, claiming that they are following all relevant regulations and that there have been no major complaints from local inhabitants. However, this is belied by recent protests and a petition, both with participation from local groups, that called for Harita to remediate the situation and change their policy of denying responsibility for the effects of nickel mining waste.

Location: Obi Island, North Maluku Province, Indonesia

Companies: Harita Group, Lygend Resources, Xinxing Qiyun Investment Holdings Co Ltd

Investors and financiers:

The overall owner is Harita Group, through its subsidiary Trimegah Bangun Persada (also known as Harita Nickel).

In 2015, Harita, together with subsidiaries of Xinxing Ductile Iron Pipes Co., a Chinese state-owned enterprise based in Hebei Province, built a $320 million smelter. In 2021, Harita and another Chinese company, Lygend Resources, teamed up to build another smelter for a total cost of $1.05 billion. Two Chinese electric vehicle battery manufacturers, GEM and Easpring, agreed to buy nickel and cobalt by-products from the new venture for eight years.

In 2023, Harita Nickel made an initial public offering, which helped it raise a further $672 million.

Concerns:

1. Environmental damage: There has been widespread deforestation on Obi Island. Nickel waste is reportedly entering waterways and even making much of the freshwater, as well as water near the coasts, red. A 2019 study also shows heavier concentrations of heavy metals among nearby marine species. There are concerns of damage to nearby coral reefs as well.
2. Damage to livelihoods and access to water: Local residents have reported that the flow of nickel waste offshore has made fishing impossible during the rainy season when the water turns red. Fishermen have to go ever farther out for their catches. Other villagers report that they can no longer drink from the freshwater nearby and that coconut trees have been killed.
3. Health concerns: The HPAL process produces chromium-6, a carcinogen, and there is evidence that it is not being successfully contained and is present in local sources up to 19 times above Indonesia’s legal limit. Local residents report especially high respiratory illness rates among children tied to the mining.
4. Safety concerns: In June 2025, heavy rainfall led to the breaching of a sediment pond for nickel processing waste, leading to the flooding of three nearby villages.
5. Occupational safety and labour rights concerns: Reportedly, from 2019 to 2023, 2 workers were killed and 5 were injured in accidents.
6. Dislocation: Harita Nickel has been negotiating with villagers in Kawasi, the largest nearby settlement, which has already been significantly impacted by mining. The goal is to have the residents leave and resettle in ‘Eco Village’, a constructed town further from the mining area. Some villagers nearby report intimidation from security forces, which they see as a way of exerting pressure on them in relation to the negotiations.