"New study shows the economic and health cost of Indonesia’s drive for nickel processing" 20 February 2024

...claims of positive impacts from nickel downstreaming often overlook the effects on environmental risks and public health.

A new study on the health and economic impacts of the nickel processing drive from the Centre for Research on Energy and Clean Air (CREA) and the Center of Economic and Law Studies (CELIOS) has debunked the supposed economic gains. The study...is a deep dive into the economic, ecological, and public health impacts of the industry, with a focus on the top three locations for nickel smelting operations: the provinces of Central Sulawesi, Southeast Sulawesi and North Maluku...

Environmental degradation is one of the impacts arising from nickel processing operations. The decline in water, soil, and air quality leads to a decrease in the livelihoods of fishermen and farmers in the vicinity of industrial areas. Projected in the report is that over the next 15 years, farmers and fishermen will incur losses of up to IDR 3.64 trillion (USD 234.84 million)...

This is attributed to the presence of operational Captive Coal Power Plants... Of the 10.8 GW operating capacity of all captive coal power in Indonesia, over 75% (8.2 GW) is dedicated to metal processing. Of this, nickel alone consumes three-fourths or about 6.1 GW...

China is currently the largest investor in captive coal power in Indonesia...

The researchers recommend policies to power nickel smelters with clean energy instead of coal power, strengthened emissions and environmental standards and disclosure, as well as increased royalty payments....