Indonesia: Fatal fire followed by two more workplace accidents at nickel facilities; IMIP safety standard under scrutiny
Summary
Date Reported: 6 Jan 2024
Location: Indonesia
Companies
PT Indonesia Morowali Industrial Park - Other Value Chain Entity , CNGR Advanced Material - Other Value Chain Entity , GEM Co. Ltd. - Other Value Chain Entity , Ecopro - Other Value Chain Entity , LG Chem - Other Value Chain Entity , Samsung SDI (part of Samsung) - Other Value Chain Entity , SK Innovation - Other Value Chain Entity , Tesla - Other Value Chain Entity , BMW - Other Value Chain Entity , Ford - Other Value Chain Entity , Contemporary Amperex Technology (CATL) - Other Value Chain Entity , General Motors - Other Value Chain Entity , Hyundai Motor (part of Hyundai Kia Motor) - Other Value Chain Entity , Stellantis - Other Value Chain Entity , Toyota - Other Value Chain Entity , Mercedes-Benz Group - Other Value Chain Entity , Volkswagen - Other Value Chain Entity , Tsingshan Group - Other Value Chain Entity , Zhejiang Huayou Cobalt Co. Ltd. - Other Value Chain EntityAffected
Total individuals affected: Number unknown
Migrant & immigrant workers: ( 8 - China , Metals & steel , Gender not reported , Unknown migration status )Issues
Occupational Health & Safety , DeathsResponse
Response sought: Yes, by Journalist
External link to response: (Find out more)
Action taken: Workers held a rally in December 2023 in light of the accident. Among their demands are for IMIP to provide compensation for victims of the accident, in which IMIP had given Rp600 million (US$38,617) for families of those killed and varying undisclosed payments for those injured, while keep ensuring workplace safety. Other demands include, among others, periodic renovations, ensuring qualified and competent OSH officials, as well as increasing healthcare facilities, which includes the provision of more ambulances. In February 2023, two suspects were named, both supervisors at the company and both Chinese nationals. A spokesman for the IMIP park management told the media that the No. 41 smelting furnace that caught fire belongs to the ferronickel processing plant of PT Indonesia Tsingshan Stainless Steel (hereinafter referred to as "ITSS"). The incident occurred during the boiler maintenance period. "At that time , When the furnace was not operating, iron slag flowed out of the furnace wall and came into contact with combustibles on site, causing a fire." To Bloomberg, IMIP responded to the journalists, incl. saying it investigates employee complaints and records all injuries. In a statement on behalf of itself and Tsingshan, IMIP said “safety is always our priority". BMW, Ford, General Motors, Stellantis, Mercedes-Benz, Volkswagen and Toyota also responded to the journalists regarding their links to IMIP and worker safety issues on the site. LG Chem Ltd. and SK Innovation Co. didn’t respond to requests for comment about their links to IMIP; Samsung SDI Co. declined to comment. Tesla and Hyundai didn’t respond to requests for comment. Contemporary Amperex Technology said, “no CATL batteries include nickel from IMIP.” GEM didn’t respond to a request for comment. In separate statements, Huayou and CNGR said they raised safety standards and view preventing workplace accidents as an overriding priority. Both companies also said they comply with relevant environmental standards.
Source type: News outlet
“Analysis: Safety standards under scrutiny after explosion in Morowali”, 10 January 2024
The occupational safety and health (OSH) standard at the nickel-focused Indonesia Morowali Industrial Park (IMIP) is under scrutiny after explosions blasted in Tsinghan subsidiary Indonesia Tsingshan Stainless Steel’s (ITSS) nickel furnace located in the industrial park. The deadly incident adds to the series of OSH incidents in the industrial park, raising concerns over its OSH regulation implementation.
The Central Sulawesi Regional Police Force stated that based on witness statements, there might have been a violation of [...] the Indonesian Criminal Code (KUHP) [...]
[...]In the end, ITSS accident prompted House of Representatives Commission VII to request for audits on all smelters in IMIP.
According to initial analysis of ITSS documents by an oversight team consisting of Manpower Ministry and Central Sulawesi Manpower Office officials, ITSS shows indications that they have not completed the occupational health and safety management system (OSHMS) audit required by Government Regulation No. 50/2012 for firms with more than 100 workers. However, ITSS responded that it has received the ISO:45001 OHSMS certification in 2018. Furthermore, a team member told Tempo that only Huayeu Nickel Cobalt has completed an OHSMS audit among firms that operate in IMIP.
The accident at the ITSS furnace was followed by a fire at a nickel smelter owned by Jiangsu Delong Nickel Industry subsidiary Gunbuster Nickel Indonesia, which happened at about 17.20 WITA on Dec. 28, 2023. The cause of the fire was a spark that burned plastic equipment and supplies in the smelter, according to the Central Sulawesi Regional Police Force. The next incident in IMIP was a mine excavation landslide that killed two workers at Sumber Permata Mineral’s nickel mine on Dec. 30, 2023. Moreover, he troubled Job Creation Law may have contributed to the OSH troubles afflicting IMIP facilities through deregulating provisions, which may have compromised safety standards, in a bid to attract more investors to Indonesia. Intertwined with the legislation’s potential impact is the government’s natural resources “downstreaming” mission, of which IMIP is part of for the country’s nickel industry. This could have also influenced the rate of accidents in the industrial park by creating urgency to achieve returns that encourages compromises in OSH.
A source at the Manpower Ministry stated that there has been continuous neglect of audits within the internal affairs of ITSS. Despite being established in 2014, the company has never conducted an audit of the occupational safety and health management system (SMK3).
[...]