The Indonesian Government is set to impose sanctions on companies for environmental violations at the Morowali Industrial Park (IMIP), a major hub for the country’s nickel production, according to a report by Bloomberg.
The Ministry of Environment has cited issues such as poor wastewater management, air pollution and the use of unlicensed tailing areas.
These sanctions will include government directives and fines for those found to be in breach of environmental laws.
The IMIP, which houses numerous nickel smelters, will face a comprehensive audit as part of the government’s crackdown.
Deputy for Environmental Law Enforcement Rizal Irawan was quoted as saying: “Sanctions on IMIP will be in the form of government directives and fines on companies proven to have violated laws.”
This move represents a rare but decisive step by the Indonesian Government to address the environmental impact of its rapidly expanding nickel industry.
The nickel industry in Indonesia, which contributes more than half of global production, has been under scrutiny for its environmental footprint and safety concerns. The sector, predominantly owned by Chinese interests, has been rapidly growing this decade.
Tsingshan Holding Group, a Chinese metals conglomerate, controls the IMIP, which has received investment of more than $30bn.
Located on Sulawesi Island, the industrial park spans 2,000 hectares and employs more than 100,000 individuals.
In April, the IMIP experienced a suspension of operations and increased scrutiny regarding its nickel extraction methods after a landslide.
The incident sparked concerns regarding the safety of high-pressure acid leaching techniques employed in nickel extraction at the park.
In a related development, the Indonesian Government recently revoked mining permits for four nickel ore companies in the Raja Ampat region.
This decision followed extensive protests over environmental damage in the area, known for its exceptional marine biodiversity and status as a UNESCO Global Geopark.
“Indonesia to sanction companies for environmental breaches at nickel industrial park” was originally created and published by Mining Technology, a GlobalData owned brand.
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