Home / Disasters and Accidents / Nickel Plant Shutdowns Grip Indonesia After Deadly Landslide
Nickel Plant Shutdowns Grip Indonesia After Deadly Landslide
9 Mar
Summary
- Four Chinese-run nickel plants halted production after a fatal landslide.
- Government threatens to revoke environmental permits for affected plants.
- The shutdowns impact 30% of Indonesia's high-pressure acid leaching capacity.
Four Chinese-run nickel plants in Indonesia have temporarily halted production due to a fatal landslide that occurred last month at a waste area. The incident, which resulted in the death of one worker, has prompted intensified government scrutiny of the sector.
The affected facilities, all operating high-pressure acid leaching (HPAL) processes at the Indonesia Morowali Industrial Park in Sulawesi, account for 30% of Indonesia's total HPAL capacity. The suspension at PT QMB New Energy Materials, the site of the accident and a major shareholder including GEM Co. and Tsingshan Holding Group, could last up to three months.
The government has also indicated it may revoke QMB's environmental permit, following a major explosion in Morowali last year that led to demands for stricter industry regulations. Other GEM operations in the area have also ceased production, with potential restarts in a few weeks. HPAL plants process nickel ore for electric vehicle batteries but generate substantial waste, raising safety concerns in a region prone to heavy rains and earthquakes.
