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25 Mar 2024

Indonesia: Climate Rights International report documents environmental & human rights impacts of nickel plants & mines in Halmahera

A report (linked below) by the Climate Rights International (CRI) documents the environmental and human impacts of nickel smelting and processing projects in Halmahera, Indonesia.  CRI interviewed 45 people living near the projects who alleged "serious threats to their land rights, rights to practice their traditional ways of life, right to access clean water, and right to health due to the mining and smelting activities". Moreover, CRI invited the companies mentioned in the report to respond to the allegations. 

Companies mentioned in the report that responded to CRI are BASF, CNGR, Eramet, Ford, Huayou Cobalt, Nickel Industries, and Volkswagen. Responses are annexed in the CRI report.  

In its response, Ford stated that “[a]s of end of 2022, we conducted 30 supplier audits along four select battery supply chains at all tiers through to the mine sites. These initial audits identified and mapped 120 suppliers, including mine sites in Australia, Chile, the Democratic Republic of the Congo, Finland, Indonesia, Russia and Turkey. ... No critical risks were identified during the audits.” 

Volkswagen responded that [o]nly suppliers that accept our sustainability requirements and commit to fulfilling them may enter into a business relationship with the Volkswagen Group.” 

The CRI report cited Tesla’s 2022 Impact Report in relation to the company’s mineral suppliers, Huayou and CNGR. The Impact Report mentions that “...Huayou’s operations in Indonesia have been audited and subjected to a lifecycle analysis (LCA), while an audit and LCA of CNGR’s nickel production in Indonesia are in progress." 

The report quoted Antam’s 2022 Sustainability Report that states “ANTAM always respects and upholds the protection of the rights of local communities, including the customary rights of indigenous communities,” and “in every mining location, ANTAM is able to prioritize the customary rights of local communities, especially in areas that directly intersect with the customary territories of local communities.” 

Thiess, the CRI report stated, "has a climate change policy and sustainability goals, including a 2050 net zero commitment across its operations and value chain.”  

The Business and Human Rights Resource Centre invited other companies cited in the report that did not respond to CRI: Indonesia Weda Bay Industrial Park (IWIP), EVE Energy, Glaucous International Pte Ltd, Lindo Investment Pte Ltd, POSCO, PT Antam, PT First Pacific Mining,PT Mega Haltim Minera, PT Weda Bay Nickel, Rigqueza International, Strive Investment, Tesla, Thiess, Tsingshan Holding Group, Zhenshi Holding Group. Only POSCO and Tesla responded (linked below). 

Company Responses

PT ANTAM Tbk

No Response

Glaucous International

No Response

PT Indonesia Weda Bay Industrial Park

No Response

Lindo Investment Pte Ltd

No Response

PT First Pacific Mining Indonesia

No Response

PT Mega Haltim Mineral

No Response

PT Weda Bay Nickel (JV between Eramet and Tsingshan Holding Group)

No Response

Riqueza International Pte Ltd

No Response

Strive Investment

No Response

Thiess Pty Ltd

No Response

EVE Energy

No Response

Tsingshan Group

No Response

Zhenshi Group

No Response

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