Indonesia allowing nickel industry abuses to go unchecked: Report
JAKARTA – The Indonesian government is allowing environmental damage, including deforestation and violations against indigenous people, to go unchecked around a multibillion-dollar industrial park on a once-pristine eastern island, a report said on June 5.
Indonesia is both the world's largest nickel producer, and home to the biggest-known reserves, and a 2020 export ban has spurred a domestic industrial boom.
Operations have grown around Weda Bay, the world's largest nickel mine by production, on Halmahera island as Indonesia exploits the metal reserves used in everything, from electric vehicle batteries to stainless steel.
Climate Rights International (CRI) said companies had caused a spike in air and water pollution and deforestation around the industrial park, accusing the government of ignoring their conduct.
'The Indonesian government is giving a green light to corporate practices that prioritise profits over the rights of local communities and the environment,' Ms Krista Shennum, a researcher at Climate Rights International, told AFP.
'The Indonesian government should immediately hold companies accountable. This could include civil penalties, criminal prosecutions or rescinding permits.'
Much of the park's nickel is sourced by Weda Bay Nickel (WBN), a joint venture of Indonesian mining firm Antam and Singapore-based Strand Minerals, with shares divided between French mining giant Eramet and Chinese steel major Tsingshan.
An AFP report last week detailed how the home of the nomadic Hongana Manyawa tribe was being eaten away by the world's largest nickel mine, with members issuing a call for nickel companies to leave their tribal lands alone.
'Criminalisation, harrasment'
Locals have reported a rise in air pollution from nickel processing smelters and rivers polluted by nickel tailings in soil brought down by heavy rain.
Water tests by Indonesian NGOs AEER, Jatam, and Nexus3 Foundation in 2023 and 2024 'revealed dangerously high levels of nickel and hexavalent chromium, among other pollutants,' the report said.
'(Companies) are failing local communities by not making information about the safety of important drinking water sources publicly available and accessible,' said Ms Shennum.
Both WBN and Eramet told AFP last week that they work to minimise impacts on the environment, including conducting water tests.
CRI also said Indonesian and foreign companies in coordination with police and military personnel had 'engaged in land grabbing, coercion and intimidation' of indigenous peoples and other communities.
Local activists and students opposing the industrial park have 'faced criminalisation, harassment and smear campaigns', the report said.
WBN and the Indonesian government did not immediately respond to a request for comment.
But Indonesia's energy ministry told AFP last week that it was committed to 'protecting the rights of indigenous peoples and ensuring that mining activities do not damage their lives and environment'. AFP
Join ST's Telegram channel and get the latest breaking news delivered to you.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNA
an hour ago
- CNA
India, China agree to resume direct flights, boost business links
NEW DELHI: India and China agreed on Tuesday (Aug 19) to resume direct flights and step up trade and investment flows as the neighbours rebuild ties damaged by a deadly border clash in 2020. The announcements followed Chinese Foreign Minister Wang Yi's two-day visit to New Delhi for the 24th round of border talks with India's National Security Advisor Ajit Doval. The talks addressed troop deployments, delimitation of borders and boundary management, though no breakthrough was achieved. Beijing said both countries agreed to meet again in China in 2026. FLIGHTS, TRADE AND VISAS The two sides said they would restore direct flights suspended since the COVID-19 pandemic, ease visas and boost trade and investment. No date was given for when flights would resume. 'Stable, predictable, constructive ties between India and China will contribute significantly to regional as well as global peace and prosperity,' Prime Minister Narendra Modi posted on X after meeting Wang. Modi is due to travel to China at the end of August to attend the Shanghai Cooperation Organisation summit, his first visit to the country in more than seven years. TIBET DAM CONCERNS A Chinese foreign ministry readout said Wang told Doval that the 'stable and healthy development of China-India relations is in the fundamental interests' of both peoples, urging mutual trust and expanded cooperation. India, however, raised concerns over a massive dam China is building on the Yarlung Zangbo river in Tibet, which becomes the Brahmaputra in India and Bangladesh. Foreign Minister Subrahmanyam Jaishankar stressed the need for 'utmost transparency', warning of potential risks to millions of people downstream. China has insisted its hydropower projects in Tibet will not harm the environment or reduce water flow, though India and Bangladesh remain wary. ECONOMIC PROMISES An Indian source said Wang assured Jaishankar that Beijing was working to address New Delhi's key needs, including fertilisers, rare earths and tunnel boring machines.
International Business Times
3 hours ago
- International Business Times
What is B30A? Nvidia Prepares New, More Powerful Blackwell-Based AI Chip for China
US-based semiconductor giant Nvidia is developing a new artificial intelligence chip for the Chinese market, sources familiar with the matter revealed. The processor, known internally as the B30A, will be based on Nvidia's latest Blackwell architecture and is expected to be more powerful than the H20 chip currently approved for sale in China. Nvidia X The move comes after U.S. President Donald Trump signaled last week that Washington may allow more advanced chips to be exported to China. However, approval remains uncertain as U.S. lawmakers continue to express concerns about providing Beijing with access to high-performance AI technology. The B30A will reportedly use a single-die design, offering roughly half the computing power of Nvidia's flagship B300, which uses a dual-die configuration. Despite the scaled-down performance, the chip will feature high-bandwidth memory and Nvidia's NVLink interconnect, similar to the H20 but built on newer technology. Although the final specifications are not yet confirmed, Nvidia aims to deliver samples of the chip to Chinese clients for testing as early as next month. In a statement, the company said it regularly evaluates new products to remain competitive "to the extent governments allow," emphasizing that all offerings comply fully with regulatory approvals. China accounted for about 13% of Nvidia's revenue last year, making it a critical market despite heavy restrictions. In July, the U.S. allowed Nvidia to resume sales of the H20, which had been halted earlier this year. Trump later suggested that future Nvidia chips for China could come with "30% to 50% off" in computing power compared to flagship models, calling the H20 "obsolete." The question of how much AI hardware China should access remains one of the most sensitive issues in U.S.-China trade relations. Nvidia has argued that continued engagement with Chinese firms is necessary to prevent them from switching entirely to local rivals like Huawei, which is rapidly improving its chip capabilities. Chinese state media have recently raised security concerns about Nvidia's chips, warning local companies about potential risks. Nvidia has denied those claims, saying its hardware contains no hidden vulnerabilities. Alongside the B30A, Nvidia is also preparing another China-specific chip, the RTX6000D, designed mainly for AI inference tasks. This processor, also based on Blackwell architecture, will have reduced specifications to comply with U.S. export thresholds. Small batches are expected to reach Chinese clients by September.
International Business Times
3 hours ago
- International Business Times
Asian Stocks Rally with Nikkei at All-Time High; Global Markets Eye Fed Rate Cut Signals
Global markets took a wait-and-see attitude on Tuesday, as European shares were up only slightly and futures markets reflected little movement in the United States. In Asia, Japan's Nikkei hit a record 43,000, while Chinese indexes faltered on growth fears. Oil prices fell and currencies were meager as investors awaited the Federal Reserve's meeting in Jackson Hole. freepik European Stocks Rise Slightly European markets opened slightly higher on Tuesday, supported by optimism about ongoing Russia-Ukraine talks and hopes for central bank policy updates. The STOXX 600 index inched 0.1 percent higher, while France's CAC 40 added 0.2 percent. Germany's DAX and Britain's FTSE 100 both rose 0.1 percent, indicative of a largely tentative but still positive mood. Markets rose after Ukrainian President Volodymyr Zelenskiy indicated that security guarantees for Ukraine could be agreed upon within 10 days following discussions with U.S. President Donald Trump and other key European leaders. Traders took the development as a possible sign of a moderation of geopolitical risks, but uncertainty remained. Asia Awaits Fed Signals Trading sentiments in Asia were mixed as investors awaited the U.S. Federal Reserve's Jackson Hole symposium later in the week. The MSCI Asia-Pacific index excluding Japan fell 0.2%, while Japan's Nikkei reached a record in the session but finished 0.4% lower. The decline was largely driven by losses in SoftBank, which dropped after revealing a $2 billion stake in struggling U.S. chipmaker Intel. Chinese stocks also lost ground as investors weighed fresh economic stimulus from Beijing. Analysts said that markets have already priced in expectations for a more dovish Fed, with traders suggesting an 83.6% chance that the Fed will cut rates next month, according to CME's FedWatch tool. Oil and Currency Moves Oil prices dropped as investors rebalanced their portfolios on the back of the softer geopolitical rhetoric. Brent crude fell 0.8% to $66.07 a barrel, and U.S. crude fell 0.9% to $62.88. The decline in energy prices that fueled the drop in yields damped concerns over supply disruptions but also demonstrated caution over global demand. Currency markets remained steady. The euro was up 0.1% at $1.1670, and the dollar was 147.64 yen. The dollar index was flat after edging up on Monday. Investors anticipate a rise in currency volatility after the Fed updates the market on its monetary policy later in the week. Cryptocurrencies reflected the risk-off sentiment in the rest of the world. Bitcoin declined 1.4% to $114,814.91, and ether was down 2.7%, at $4,224.07. The pullback followed a powerful advance in recent weeks, and traders were booking profits ahead of the Fed meeting.
