Snapshot: PT Stardust Estate Investment (SEI) manages an industrial zone for nickel mining and processing in North Morowali Regency, Central Sulawesi, Indonesia. Within this zone, PT Gunbuster Nickel Industry (GNI) and PT Nadesico Nickel Industry (NNI) operate nickel smelters and related facilities. NNI is the Indonesian subsidiary of CNGR Advanced Material, a major Chinese manufacturer of cathode precursor materials for lithium-ion batteries. In a lawsuit filed by WALHI on 6 December 2024, the companies are accused of causing severe environmental and social harm, including marine and river pollution, air contamination from coal-fired power plants, public health risks, and agrarian conflicts. The case is ongoing.

On 6 December 2024, the WALHI filed a lawsuit at the Poso District Court against PT Stardust Estate Investment, PT Gunbuster Nickel Industry, and PT Nadesico Nickel Industry, along with co-defendants including the Ministry of Environment, the Central Sulawesi Provincial Governor, and the North Morowali District Regent, for alleged environmental damage caused by mining and industrial activities (Case No. 202/Pdt.Sus-LH/2024/PN Pso).

The lawsuit alleges pollution of seawater and rivers with hazardous chemicals, and air pollution linked to coal-fired power plants (PLTU) and agrarian conflicts. It also claims that the nickel mining operations in Morowali have contributed to public health risks with local communities reporting respiratory issues such as coughing and difficulty breathing, allegedly caused by industrial air pollution. Additionally, the pollution has disrupted fishing activities and harmed local fishers, who now struggle to catch fish in waters that have reportedly turned black. WALHI seeks environmental restoration (river, coastal, and residential areas) by PT Stardust et.al., and financial compensation. It also sought for the authorities to monitor the situation in Morowali.

On 21 February 2025 a mediation session between the parties was unsuccessful. PT SEI and PT GNI refused to commit to environmental restoration for pollution and ecosystem damage allegedly caused by poor mining practices, while PT NNI failed to attend and gave no formal response. WALHI offered to share laboratory test results confirming contamination, but conditioned this on the companies formally committing to environmental remediation through an agreement (akta van dading). The Central Sulawesi Provincial Governor and the North Morowali District Regent, both listed as co-defendants, attended the session and expressed willingness to supervise the restoration process. The mediator declared the process failed, and the case proceeded to the trial phase.

On 3 December 2025, the Poso District Court ruled in favour of the plaintiffs and found the three companies liable for environmental pollution and damage. It requested the companies to restore the environment in the affected coastal areas, residential zones, and rivers, within six months from the date of the ruling, subject to daily fine for non-compliance (dwangsom). The Court also ordered the companies to reimburse WALHI’s expenses incurred during the investigation and laboratory testing.

The case remains subject to appeal.