Indonesia Halts Mine Near Dive Hotspot on Tourism Concern
(Bloomberg) -- Indonesia will suspend production at a nickel mine near a diving hotspot in the east of the country over concerns it could impact tourism.
Owned by state firm PT Aneka Tambang, the mine in the Raja Ampat archipelago in West Papua will be halted while a government team investigates its impact on the area, Energy and Mineral Resources Minister Bahlil Lahadalia told reporters on Thursday. The region is a marine protected area and internationally renowned among divers for its coral reefs and biodiversity.
“We understand Raja Ampat is a tourism spot that must be protected, but its area is vast,” Lahadalia said.
A spokesperson for PT Gag Nikel — a subsidiary of Aneka Tambang that operates the mine on Gag Island — said it respected the decision of the Energy and Mineral Resources Ministry and was ready to cooperate fully.
The site produces some of the highest grade ore in Indonesia, with a quota to mine up to 3 million tons a year.
Indonesia has rapidly expanded its nickel sector in the last decade to meet future demand from the electric vehicle sector, which uses it in some batteries. The country now accounts for well over half of global output, underpinned by its large ore reserves and vast smelting sector, which is dominated by Chinese companies.
That breakneck expansion has led to concerns over deforestation, water pollution and ecosystem destruction. Smelting the metal is also highly carbon intensive due to the use of coal-based power.
Greenpeace this week staged a protest against mining in the Raja Ampat area at a metals conference in Indonesia’s capital, Jakarta. The incident gained widespread traction in the local press and on social media, prompting a response from the government.
(Adds response from company in fourth paragraph.)
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