EU: Two companies withdraw from deal after allegations of unsustainable nickel extraction in Indonesia
"EU faces green dilemma in Indonesian nickel", 16 July 2024
"By 2050, the annual nickel supply will have to increase by 208%, and annual copper supply by 156% relative to 2020 production levels, if global net-zero emissions goals are to be achieved, according to a recent report produced by the World Bank's International Finance Corporation....
This will be a monumental task. Some analysts reckon it simply isn't possible. Others question whether satisfying the growing demand for these critical minerals can be done sustainably.
Speaking in April, UN Secretary-General Antonio Guterres said: "As we reshape how we power our societies and economies, we cannot replace one dirty, exploitative, extractive industry with another dirty, exploitative, extractive industry. The race to net-zero cannot trample over the poor."
EU legislation supports this aim. The recently agreed Corporate Sustainability Due Diligence Directive means that, from 2029, European companies will have to prove they are taking action to protect the environment and human rights throughout their supply chains...
EU companies back off of Indonesian mine
In July, Germany's BASF and France's Eramet withdrew from the $2.6 billion (€2.4 billion) "Sonic Bay" nickel-and-cobalt refinery in Indonesia amid criticism that the mine supplying it threatens the forest home of an isolated Indigenous tribe.
The deal would have significantly increased the mining of these metals from the nearby Weda Bay Nickel mine, the world's largest nickel mine and part of the Indonesia Weda Bay Industrial Park (IWIP), in which Eramet holds a minority stake...
Open-pit nickel mining has reportedly been a leading cause of deforestation in Indonesia, and the use of coal to power nickel smelters has polluted the water...
"While the cancellation of the Sonic Bay project may result in less pollution for local communities, the Indonesian government should do more to minimize the impacts of nickel mining and refining on communities living near IWIP and other nickel industrial parks," Krista Shennum, a researcher with the Climate Rights International campaign group, wrote in The Diplomat this month..."