To mine EV minerals, business turns to harmful refinery expertise

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Reporters Rebecca Tan and Dera Menra Sijabat and photographer Joshua Irwandi journeyed collectively to the far-flung Obi Islands in jap Indonesia, touring about 18 hours by ferry and one other two hours by speedboat to achieve the reducing fringe of the nation’s nickel-processing business. Tan is The Washington Submit’s Southeast Asia bureau chief, based mostly in Singapore. Sijabat and Irwandi, a documentary photographer, are based mostly in Jakarta, Indonesia.

OBIRA ISLAND, Indonesia — On a distant island near the place the Pacific meets the Indian Ocean sits one of many first refineries constructed particularly to help the world’s transition away from fossil fuels.

Rocks unearthed right here comprise traces of nickel, a key ingredient in electrical car batteries. Extracting it, refining it and readying it for export is a gargantuan job.

Greater than $1 billion has been sunk into the processing facility, the primary in Indonesia to make use of an acid-leaching expertise to transform low-grade laterite nickel ore — which the nation has in abundance — right into a higher-grade materials appropriate for batteries. Overseas buyers and lenders cite the mission as proof of their dedication to preventing local weather change.

However the sprawling facility, bordered on one facet by forest and on the opposite by blue seas, faces a significant problem: what to do with the roughly 4 million metric tons of poisonous waste produced yearly — sufficient, roughly, to fill 1,667 Olympic-size swimming swimming pools.


In 2020, the businesses behind the mission informed the federal government they’d an answer: They might pump the waste into the ocean. They in the end backtracked within the face of public strain. However it’s not clear that the on-land storage various they’ve provided as an alternative is considerably safer.

Indonesia is the world’s high producer of nickel by a large margin, based on the U.S. Geological Survey. Together with Australia, the nation has the largest nickel reserves left on Earth.

And as international demand for nickel surges, firm executives and Indonesian authorities leaders are turning to a refining expertise lengthy thought of too dangerous to embrace, too perilous for the surroundings and for native communities.

This expertise, utilizing acid underneath circumstances of intense warmth and strain to take away nickel from uncooked ore, has by no means been examined earlier than in Indonesia, the place the frequency of earthquakes, heavy rainfall and landslides could make it particularly treacherous to move and retailer hazardous waste. The method poses steep environmental prices which have but to be reckoned with, based on interviews with greater than 40 folks conversant in the nation’s nickel business, visits to 6 largely remoted mining villages in jap Indonesia and visible analyses by mining specialists.

Indonesian officers say this new refining expertise is required to harness these nickel sources, which they hope will remodel the nation’s future as oil did for Saudi Arabia. At the least 10 different tasks utilizing this identical expertise are already underneath growth, based on the Indonesian Nickel Mining Affiliation.

Officers have made it a precedence to construct a nickel provide chain, banning the export of uncooked nickel ore for processing overseas and approving the event of acid-based refining services in addition to further standard nickel smelters at a price unparalleled elsewhere. Regardless of official pledges to cut back carbon emissions, the federal government has authorized the development of coal-fired energy crops particularly to help the processing of nickel for the EV business.

A lot of the nickel in EV batteries utilized by automakers corresponding to Tesla, Hyundai and Ford is already sourced from Indonesia by means of battery producers in China. And by 2030, when international nickel demand is forecast to be 52 % greater than in 2020, Indonesia will in all probability churn out greater than two-thirds of the provision, based on estimates from Macquarie Group, an Australian monetary providers group with experience within the mining sector.

Clear automobiles, hidden toll

A collection unearthing the unintended penalties of securing the metals wanted to construct and energy electrical autos

The surging curiosity in nickel is a part of the worldwide increase in demand for a spread of metals utilized in making EVs, which usually require six occasions the mineral inputs of their fossil-fuel burning counterparts to make them run. However whereas the transition to EVs is extensively thought of important in addressing local weather change, there has usually been little recognition of the toll that extraction and processing of those uncooked supplies — together with applied sciences now urgently wanted to provide the amount and high quality of minerals required — will tackle the lives and livelihoods of native communities and the encompassing surroundings.

Laterite nickel ore is available in two types, and till not too long ago there was no want to make use of the acid-leaching expertise partly as a result of Indonesia was mining the sort often called saprolite, which could be processed partly through the use of conventional smelters. However Indonesia — and the world — is working out of saprolite ore. What can be left is lower-grade limonite ore, which consists of lower than 1.5 % nickel, making processing by conventional means practically inconceivable.

The decline in saprolite ore has occurred simply because the demand for battery-grade nickel has spiked. Most nickel mined in Indonesia has beforehand gone into merchandise like chrome steel, which may use a lower-grade mineral. However batteries require a better normal, which has positioned an unprecedented premium on the acid-leaching course of.

One afternoon late final yr, Liyus, a 52-year-old farmer on Obira, walked alongside the coast the place his household has lived for 4 generations. It’s been quiet on this island for many of his life. With out a non-public jet, attending to Obira from the Indonesian capital, Jakarta, is at the least a two-day journey involving an in a single day ferry and hours of driving on roads stippled with potholes.

Liyus, who goes by one identify, stated he used to drink from the rivers that run previous his village, however because the nickel mine added its acid-leaching refinery two years in the past, the waterways have turned darkish pink, so thick with air pollution at some factors that rows of coconut bushes have been killed off. He doesn’t know what’s within the water, solely that it bleeds into the ocean and that his nephews have needed to go farther and farther out to seek out fish. He pointed to a fishing internet drying on a close-by tree. It was stained a reddish brown.

In an hour-long interview, representatives from the 2 firms that collectively personal the processing plant on Obira island — an Indonesian agency, Harita Group, and a Chinese language agency, Lygend Sources — stated that the operation has not had a unfavorable impression on the surroundings and that the air pollution alongside the coast was not associated to waste produced by their plant. All of their operations, they emphasised, are in “full compliance” with authorities necessities. “We checked out what was the perfect and we confirmed it with the federal government,” stated Tonny Gultom, Harita’s head of well being, security and surroundings.

Like different inhabitants of the village of Kawasi, which sits on the foot of Obira’s nickel-mining operation, Liyus has by no means owned a automobile and has no concept why there’s been a sudden curiosity within the mineral that sat untouched on his island for therefore lengthy.

“We had a snug life,” Liyus stated, “earlier than this.”

Daunting challenges

Excessive-Stress Acid Leaching (HPAL) is a technique of refining low-grade nickel ore by combining it with sulfuric acid underneath excessive strain and warmth, producing a slurry that enables for the extraction of pure, high-grade nickel. The approach was pioneered within the Nineteen Sixties in Cuba however has not often been used elsewhere — till not too long ago.

Managing the acidic materials underneath excessive warmth is extra difficult than conventional strategies of refining nickel ore. And the titanium vessels wanted to combine the chemical substances are costly, a part of why capital prices for HPAL tasks are sometimes double these of standard smelters, based on the Worldwide Power Company, an intergovernmental analysis group.

The leaching course of can be energy-intensive, and producing that vitality produces about 20 tons of carbon dioxide per ton of nickel, or about double the quantity of the prevailing processing technique, based on the IEA.

After which there’s the waste.

HPAL produces an infinite quantity of corrosive chemical tailings — usually within the hundreds of thousands of tons for every mine per yr — which are extraordinarily difficult to neutralize, retailer and comprise. Even after the slurry is handled, research present, this waste can comprise dangerous heavy metals, corresponding to sure sorts of chromium, linked to respiratory diseases and an elevated danger of most cancers.

Engineers have advised three disposal choices: placing the waste right into a ditch behind a dam; drying out the waste and stacking it on vacant heaps; and pumping it into the ocean. Every strategy can go unsuitable.

A number of the world’s greatest mining firms have tried to grasp the HPAL course of — and failed.

In 2021, Brazilian mining conglomerate Vale exited a multibillion-dollar HPAL nickel-mining mission within the Pacific archipelago of New Caledonia after having 5 chemical spills in 10 years. Research by scientists in New Caledonia had by that point discovered “excessive ranges” of poisonous hexavalent chromium in water samples collected in and across the HPAL refining facility. The ability, now owned by a consortium of New Caledonia firms, had yet one more leak in November at its tailings dam, prompting native authorities to impose new rules that would restrict manufacturing.

Nearer to Indonesia, in Papua New Guinea, a Chinese language firm working an HPAL plant has for years been criticized by residents and officers for dumping its tailings into the ocean. After a tank full of mining waste overflowed onto the coast in 2019, 1000’s of residents filed a lawsuit towards the corporate demanding $5.2 billion in damages. The case continues to be pending in courtroom, stated lawyer Ben Lomai, who represents the plaintiffs.

HPAL’s troubled historical past, nevertheless, has performed little to discourage business enthusiasm for the expertise.

Whereas analysis is being carried out on safer methods to course of limonite nickel ore, they received’t have the ability to satiate current demand, stated Brian Menell, founding father of TechMet, an funding agency that focuses on minerals required for the green-energy transition. Indonesia’s HPAL services “may not be the way you need your nickel,” he stated, “however proper now, you’ve bought no selection.”

A change of plans

The nickel mine on Obira has been operated by Harita since 2016, however in 2018, Lygend joined to plan, design and assemble the HPAL refinery, ultimately buying a majority stake within the mission. The processing facility, which was designated a precedence for the nationwide authorities, opened in 2021.

After the businesses withdrew their preliminary plan to dump the HPAL waste into the ocean, they informed authorities that they might retailer the waste on land, drying out the acidic slurry earlier than dumping it again into the mining pit, after which treating the residue water in a tailings “pond.”

Solely a yr earlier, nevertheless, Harita executives had revealed a analysis article in a science journal stating that land disposal on Obira is definitely “much less appropriate” as a result of the area is in a notoriously lively seismic zone — as not too long ago as 2019, a 7.2-magnitude earthquake devastated a port city on Bacan island, lower than 50 miles from Obira — and is ceaselessly visited by heavy rainfall. That article additionally famous that about 7,000 villagers lived downstream from the positioning, concluding that the development and water management required for land disposal was “not possible.”

Requested about these findings, a Harita spokesman acknowledged that storing the waste on land is harmful however stated the corporate is managing the dangers by drying out the slurry and dumping it again into the mining pit, the place it’s prevented from seeping into native waterways.

However a international mining advisor who has been engaged on tasks in Indonesia for greater than 20 years stated: “It’s an enormous heap of waste. And if it’s not saved correctly, you may have landslides. That’s my greatest concern.” He spoke on the situation of anonymity due to enterprise issues.

Following the general public outcry over the preliminary disposal plan, the Indonesian authorities barred all nickel-processing crops from dumping waste into the ocean, stated Luhut Binsar Pandjaitan, Indonesia’s coordinating minister for funding and maritime affairs and chief architect of the nation’s nickel technique.

“We tackled this very nicely, you already know?” Luhut stated, talking at his workplace in Jakarta final yr. “We listened to the recommendation of the European Union and we stopped. We don’t do this anymore.”

Villagers and environmental activists say they continue to be involved that Harita and Lygend, which function collectively in Indonesia underneath the identify PT HPAL, are failing to honor their promise to maintain the waste on Obira out of the ocean and haven’t adequately addressed the dangers posed by storing the waste on land.

4 worldwide mining specialists independently reviewed images of the mining website at Obira taken by The Washington Submit. The specialists stated that it was inconceivable with out a formal audit to establish whether or not Harita and Lygend have been dumping HPAL tailings into the ocean, however that there have been a number of indicators that the businesses have been typically failing to comprise mining waste.

The images present “devastating” ranges of deforestation, which may improve the dangers of tailings accidents, stated Aimee Boulanger, government director of the Initiative for Accountable Mining Assurance, a company that audits mining operations and measures them towards social and environmental requirements. Even when tailings weren’t being actively pumped into the ocean, there don’t seem like “any vital controls” over what’s flowing out of the mine and getting into waterways, she added.

Sam Riggall, an advocate of accountable mining and the chief government of Dawn Power Metals, an Australian nickel and cobalt mining firm, stated the fabric getting into the rivers across the mining facility resembled processed waste, somewhat than simply runoff from open-pit mines.

“Frankly, I really feel a bit ashamed to be a part of an business that’s permitting this to occur,” Riggall stated. “If that is the legacy we depart behind … who can be proud of that?”

Gultom, Harita’s head of security, acknowledged that the HPAL refinery was producing a “enormous quantity” of waste that would pose security dangers if not correctly managed, however he pressured that it was being dealt with with sufficient precautions.

The discolored water close to Obira’s coast, he stated, was brought on by sedimentation created by timber mining years in the past. “It has nothing,” Gultom stated, “to do with us.”

Harita, which debuted on the Jakarta inventory trade in April, plans so as to add a second processing plant on Obira subsequent yr, firm executives stated.

A booming business

Throughout the nickel-rich islands of North Maluku province, outdated mining firms are increasing and new ones are taking root. They’re taking up giant tracts of land, residents say, generally with authorities authorization, generally with out. Bulk provider ships congregate alongside coastlines, recalling for some communities Indonesia’s colonial historical past, when Dutch and Portuguese settlers exploited these islands for spices corresponding to nutmeg and cloves.

Nickel manufacturing in Indonesia hit a report excessive of 1 million metric tons in 2021, although it pales as compared with what’s projected to return. By 2028, based on Macquarie, the nation can be producing at the least 2.5 million metric tons of nickel yearly.

China’s CATL and South Korea’s LG, the world’s largest battery producers for EVs, not too long ago introduced they might open HPAL crops in Indonesia. Ford Motor Co. stated it might be a part of an HPAL mission being developed by Vale and Chinese language mining firm Huayou on Sulawesi island in jap Indonesia. And final yr, Tesla signed a $5 billion deal to purchase nickel from Indonesia, authorities officers stated.

One in all Indonesia’s greatest upcoming HPAL tasks shouldn’t be removed from Obira in North Maluku.

The Indonesia Weda Bay Industrial Park on Halmahera island, a three way partnership between French and Chinese language firms, has greater than doubled its footprint prior to now 5 years, satellite tv for pc imagery exhibits. To date, the power has primarily produced nickel for stainless-steel, however a bunch of Chinese language firms stated in 2021 that they might add a $2.1 billion HPAL facility.

Maryama Usama, 60, lives in Sagea, a village simply exterior the commercial park. She has heard that the nickel firms on Halmahera want more room. And he or she stated she is aware of folks within the neighboring village of Gemaf who weren’t given any discover earlier than heavy tools confirmed up on the land that had belonged to their households for generations.

“The federal government could have given them permits,” Usama stated, brushing the nook of her eye along with her hijab. “However the land doesn’t belong to them. It’s ours.”

A matter of belief

At a mining convention in 2021, Gultom outlined Harita’s mission: “Sustainable excellence although steady enchancment of individuals and course of.” On its web site, Lygend says it’s dedicated to creating “inexperienced” nickel that can “speed up carbon neutralization.”

However Faizal Ratuela, government director of the North Maluku chapter of WALHI, an Indonesian environmental advocacy group, questioned whether or not these firms could be trusted to responsibly function nickel refineries, particularly people who use expertise as advanced as HPAL. He pointed to their environmental data in Indonesia and China.

For the reason that Harita Group ventured into mining within the early 2000s, it has clashed with native communities a number of occasions, together with on Obira, the place journalists who tried to report on the results of the mine have been detained and intimidated by safety personnel employed by Harita, Ratuela stated.

Sian Choo Lim, head of sustainability at Harita, stated that there could also be an “picture” that the corporate has not performed sufficient to guard the surroundings, however that it’s unfounded. “We’ve by no means had any points with the Kawasi neighborhood,” she stated.

Lygend and its subsidiaries have been cited in China for violating environmental rules at the least 4 occasions in as a few years, based on a Submit evaluate of statements launched by Chinese language provincial governments. These citations, made as not too long ago as final yr, embody exceeding normal emissions of smoke and mismanaging waste.

Zhang Baodong, a Lygend consultant, declined to deal with these violations. “What we’ve performed [at Obira] is already very as much as mark,” he stated. “I’ve nothing extra so as to add.”

Indonesian firms are conscious that HPAL is a “completely completely different” expertise from what they’re conversant in and that the waste administration is especially difficult, stated Meidy Katrin Lengkey, head of the Indonesian Nickel Mining Affiliation. “However as firms, we are saying, so long as there’s a regulation, we’ll be sure that to comply with.”

Environmental rules in Indonesia have lengthy been troublesome to implement as a result of they’re usually delegated to faraway provincial governments, which aren’t solely strapped for funds however vulnerable to corruption, activists say. Now, they are saying, even these rules are being rolled again in some circumstances to draw international funding.

Villagers, because of this, worry they’re defenseless.

“The federal government is meant to guard us,” stated Arnikus Jinimaya, 66, a Halmahera resident who stated he misplaced his land to the Weda Bay Industrial Park. “However now, we see they solely defend those that have cash.”

Luhut, the senior minister, scoffed at the concept officers have been overlooking social or environmental safeguards. There are issues “right here and there” with the nickel-refining business, he stated, however the authorities is greater than capable of handle the nation’s sources with out “the lecturing” of environmental activists — particularly these from carbon-emitting Western international locations.

The tall, mustachioed former normal has spent the previous few years engineering the expansion of the nickel business, personally inaugurating new HPAL services and courting figures corresponding to Tesla chief government Elon Musk. At cupboard conferences and worldwide summits, he has repeatedly made the case that the worldwide vitality transition presents the most important financial alternative for Indonesia because it gained independence in 1945.

“This,” Luhut stated, leaning over his desk to level at a graph charting nickel progress, “goes to remodel Indonesia.”

In June 2021, just a few months after the refinery on Obira started working, Luhut visited the island, donning a pink laborious hat as he examined the brand new HPAL expertise. Liyus and different residents of Kawasi stated they’d anticipated him to cease at their village, the place they hoped to indicate him the rivers that had began to run pink and the bushes that had died when their roots have been lined by sludge from the mine.

He by no means got here, locals stated.

About this story

Reporting by Rebecca Tan and Dera Menra Sijabat. Pei-Lin Wu in Taipei, Taiwan, and Devianti Faridz in Jakarta additionally contributed to this report. Pictures by Joshua Irwandi/VII Picture Mentor.

Design by Lucy Naland. Improvement by Irfan Uraizee. Graphic by Hannah Dormido. Knowledge evaluation by Steven Wealthy. Analysis by Cate Brown.

Alan Sipress was the lead editor. Enhancing by Courtney Kan, Vanessa H. Larson, Olivier Laurent, Joe Moore and Martha Murdock.

Extra help from Steven Bohner, Matt Clough, David Dombrowski, Gwen Milder, Sarah Murray and Andrea Platten.

Clear automobiles, hidden toll

As the worldwide demand for electrical automobiles begins to outpace the demand for gas-powered automobiles, Washington Submit reporters got down to examine the unintended penalties of a worldwide EV increase. This collection explores the impression of securing the minerals wanted to construct and energy electrical autos on native communities, staff and the surroundings.

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