Indonesia to sanction nickel park firms for environment breaches
Indonesia will sanction companies for environmental breaches at an industrial park that accounts for a large slice of its nickel output.
Environmental violations have been found at Indonesia Morowali Industrial Park, according to a statement from the Ministry of Environment. Among them are a failure to manage wastewater, air pollution and use of unlicensed tailing areas, it said.
Sanctions on IMIP — which is home to a large number of nickel smelters — will be in the form of government directives and fines on companies proven to have violated laws, Deputy for Environmental Law Enforcement Rizal Irawan said in the statement. An audit of the entire industrial area will also be ordered, he added.
The move marks rare action by the government against the Indonesian nickel industry, which has grown at a breakneck pace this decade and now accounts for more than half of global production. The smelting sector, which is largely Chinese-owned, has courted controversy both for its poor safety record and for polluting nearby areas.
Controlled by Chinese metals giant Tsingshan Holding Group, IMIP is the product of more than $30-billion in investment. The industrial park, located on 2 000 ha of land on the island of Sulawesi, employs more than 100 000 staff and contractors.
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