Indonesia's ambition to become a key player in EV value chain creates exploitative nickel mining conditions; human rights-based governance & extraterritorial policies urged in CSOs' policy paper
"Neo-extractivism at Indonesia's Nickel Epicentrum:Fragility of Mining Governance, Ecological Damage and Human Rights Violations on Earth Celebes", 9 October 2023
The Indonesian government's ambition to become a key player in the global electric vehicle value chain has created excessive nickel mining exploitation conditions. [...]
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In South Sulawesi [...] namely PT Vale, threatens the existence of the Nusantara pepper barn located in the Tanamalia Block or Lumereo-Lengkona Mountains, specifically in Loeha Village and Rante Angin Village with a total concession area of 17,776.78 hectares. In the concession area, there are also pepper plantations belonging to thousands of people, which have been cultivated for a long time in Loeha Raya, covering an area of 4,239.8 hectares. "The existence of PT. "Vale threatens the survival of thousands of farmers in Loeha Raya," he said.
In Central Sulawesi, massive nickel mining activities are increasing the rate of deforestation. The natural rainforest contained in the most significant nickel mining concession is in Central Sulawesi, with an area of more than 200,000 hectares.[...]
"Captive PLTU coal burning dust which supports nickel mining operations also causes acute respiratory infections (ARI), 52% of residents who check their health at government-owned health facilities," he said.
In Southeast Sulawesi, WALHI also recorded various environmental impacts caused by nickel mining and post-mining activities. Among them, changes in the landscape using the open pit technique (hills become land and even become puddles, river flows are cut off and even become dry) cause agricultural land to dry out because mining companies control water sources, and also the influence of dust produced from mining activities; [...].
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Andi said criminalization cases increased due to conflicts between residents and nickel mining companies. Based on cases handled by WALHI from 2019-2023, around 32 people were criminalized (reported to APH), two people were arrested, and 14 experienced abuse.
Based on studies and field findings showing many environmental risks and human rights impacts due to nickel mining activities, Satya Bumi and the Sulawesi Walhi Alliance proposed the need to reform mining governance policies that are sustainable and based on human rights. [...]
Meanwhile, all governments, companies and international financial institutions are expected to implement extraterritorial policies to prevent the activities and investments of companies, financial institutions in mining companies or the nickel industry in Sulawesi; monitor the activities and assets of companies and international financial institutions in nickel mining companies in Sulawesi; and ensure that investments by companies and international financial institutions are not used to mobilize the military and armed police to secure mines.
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[Note: PT Vale, the company cited in the article, has responded to the Business & Human Rights Resource Centre's invitations to respond on similar concerns. The company's responses may be accessed here and here.]