18-1-2024 (JAKARTA) A recent report by US-based Climate Rights International (CRI) has revealed that mining activities within the nickel industrial park in Indonesia have led to extensive deforestation, with the impact attributed to predominantly Chinese companies involved in the sector.
The findings come at a crucial time for Indonesia, boasting the world’s largest nickel ore reserves, as it aims to extract more value from the mineral. The country is actively seeking investments in processing and the manufacturing of electric vehicle batteries, aligning with its ambitious target of producing approximately 600,000 electric vehicles (EVs) by 2030 – a significant increase compared to the modest number of EVs sold in Indonesia during the first half of 2023.
CRI’s report, released on Wednesday (Jan 17), sheds light on the environmental consequences of activities at the Indonesia Weda Bay Industrial Park (IWIP), a major nickel processing hub with investors including China’s Tsingshan Holding Group and France’s Eramet. Located on Halmahera island in the Maluku region, the park is operated by a joint venture between China’s Zhejiang Huayou Cobalt Zhenshi Holding Group and Tsingshan.
Despite repeated attempts by Reuters, IWIP, Tsingshan, Eramet, Huayou, Zhenshi, and the forestry ministry have not provided comments on the allegations made in the report.
CRI’s investigation reveals that companies, holding valid permits, have deforested over 5,300 hectares of tropical forest within the park’s concession since 2018. This information is based on geospatial analysis of satellite imagery conducted by CRI in collaboration with researchers from the University of California, Berkeley. To put this into perspective, the deforested area is approximately the size of over 6,000 football pitches.
Experts have expressed concerns that the nickel industry’s activities could exacerbate deforestation in Indonesia, a country abundant in natural resources and massive rainforests. While Indonesia has made strides in curbing deforestation rates for plantations and industrial purposes, the nickel industry’s impact raises environmental alarms.
Data from the World Resources Institute indicates that Indonesia achieved a 64% reduction in average primary forest loss from 2020 to 2022 compared to the period of 2015-2017. However, CRI estimates that the carbon dioxide emissions resulting from this deforestation are equivalent to the annual emissions of approximately 450,000 cars.
In response to environmental concerns, President Joko Widodo affirmed last year that Indonesia would intensify scrutiny of mining activities and mandate companies to manage nurseries and engage in reforestation efforts in depleted mining areas.
