Indonesia stops nickel mining operations at top tourist diving destination

Globe and Mail

3 days ago

JAKARTA, Indonesia (AP) — The Indonesian government announced Tuesday they had suspended four nickel mining operations in Raja Ampat, one of the country's top tourist destinations for diving and snorkeling.
'Starting today, the government has revoked four mining operation permits in Raja Ampat,' Minister for Energy and Mineral Resources Bahlil Lahadalia told reporters after a Cabinet meeting in the presidential palace in the capital, Jakarta.
Raja Ampat, an archipelagic regency in Southwest Papua province, is spread over nearly 20,000 square kilometers (7,700 square miles) and is home to 75% of the world's coral species and more than 1,600 fish species. It is a designated UNESCO Global Geopark which includes marine conservation zones managed by the Ministry of Marine Affairs and Fisheries.
Lahadalia said the decision came after an investigation by the Ministry of Environment uncovered 'several violations in the environmental context' by four companies holding mining permits in Raja Ampat.
None of the four companies had started nickel operations as they failed to gain government approval for their Work Plan and Expenditure Budget, Lahadalia said.
Last week, Greenpeace Indonesia and Papuan Youth staged a peaceful protest during the Indonesia Critical Minerals Conference & Expo. They demanded the closure of five nickel mining companies operating in Raja Ampat, including PT Gag Nikel, a subsidiary of state-owned mining company PT Aneka Tambang.
The government suspended nickel mining operations at four of the five companies. The fifth, Gag Nikel, has been allowed to continue its operations on Gag Island as it lies outside the geopark area, Lahadalia said. Gag Island is about 42 kilometers (26 miles) west of Piyanemo, a popular diving spot in Raja Ampat.
Gag Nikel has a concession area of ​​130 square kilometers (50 square miles). It produced around 3 million wet metric tons of nickel in 2024, and is expected to produce the same amount in 2025 and 2026.
Lahadalia said Indonesian President Prabowo Subianto has instructed him, along with ministers for the environment and forestry, to closely monitor Gag Nikel's mining operation.
'We are really serious in our intent to protect the environment in Raja Ampat," Lahadalia said. 'We want to produce nickel that is environmentally friendly and acceptable (to the world's standard).'
Indonesia has the largest nickel reserves in the world and aims to dominate global nickel supply. Its nickel ore lies in shallow deposits, easily accessible when the rainforest is cut down.
In 2023, the country was responsible for more than half the supply of nickel globally. The country has gone from having two nickel smelters to 27 over the last decade and plans to open 22 more, according to S&P Global Commodity Insights.
Nickel was once known mainly for making stainless steel, but demand has skyrocketed as automakers like Tesla use it to make electric vehicle batteries and larger battery makers use it in clean electricity projects.
Rapid growth of Indonesia's nickel industry has already led to environmental degradation across several regions on Sulawesi Island, said Greenpeace forest campaigner Iqbal Damanik.
'Now nickel mining is also threatening Raja Ampat, a place that is often called the last paradise on Earth,' Damanik said.
Over 500 hectares of forest and vegetation have been cleared for nickel mines on the West Papua islands of Gag, Kawe and Manuran, according to Greenpeace Indonesia.
The three islands are classified as small islands. Indonesia's law on the management of coastal areas and small islands prohibits mining as it could lead to soil runoff and sedimentation that endangers coral reefs and marine ecosystems.