Revealed: How a leading Indonesian EV supplier covered up toxic pollution

Summary

Harita Nickel, one of the largest nickel mining companies in the world, has been hiding a major environmental scandal for over a decade. Internal documents reveal that the company has been contaminating nearby waters with toxic levels of hexavalent chromium, a carcinogenic substance, while presenting itself as environmentally responsible. Despite knowing about the pollution, Harita misled investors and the public, including during its 2023 IPO. The nickel mined here plays a crucial role in the global electric vehicle market, yet the environmental and health damage caused by Harita’s practices is severe, raising concerns from both local communities and global stakeholders.

Takeaways

• 😀 Harita Nickel, one of the world's largest nickel mining companies, has been hiding environmental contamination caused by its operations for over a decade.
• 😀 The company mined nickel in Indonesia, a crucial component in electric car batteries, while presenting itself as environmentally responsible and sustainable.
• 😀 Internal emails revealed that Harita Nickel's wastewater contained hexavalent chromium (Cr VI), a toxic and carcinogenic chemical, at levels far above legal limits.
• 😀 Despite knowing about the contamination, Harita Nickel concealed the issue, fearing it would scare off investors, especially as they prepared for an IPO in 2023.
• 😀 Over the course of a decade, Harita Nickel's operations polluted local water sources, and hexavalent chromium contamination made its way into the drinking water of nearby villages by 2022.
• 😀 Harita Nickel's environmental breaches were extensive, with some contamination levels being 19 times the legal limit, according to leaked internal documents.
• 😀 The company repeatedly misled the public, investors, and regulators, denying the pollution allegations while profiting from the growing demand for nickel for electric car batteries.
• 😀 Investors were assured that the company regularly tested and complied with regulations, but these claims were later revealed to be false.
• 😀 The nickel from Harita's mine is key to the global electric vehicle (EV) supply chain, with the company’s nickel reaching battery manufacturers and, indirectly, car companies.
• 😀 Legal experts suggest that Harita Nickel could face criminal, civil, and administrative sanctions due to its environmental violations and failure to comply with regulations.

Q & A

What is the central issue highlighted in this investigation?

The investigation reveals that Harita Nickel, a major mining company in Indonesia, has been secretly contaminating local water sources with toxic chemicals, specifically hexavalent chromium (Cr VI), for over a decade, despite presenting itself as environmentally responsible.

Why is nickel so important in the context of this story?

Nickel is a crucial component in lithium-ion batteries, which are widely used in electric vehicles (EVs). The rising demand for EVs has led to a global need for nickel, making mining companies like Harita critical players in the supply chain.

What environmental harm did Harita Nickel's operations cause?

Harita's mining activities caused significant contamination of local waters with hexavalent chromium, a carcinogenic heavy metal. The pollution affected the health of local communities and the ecosystem, with levels of contamination sometimes exceeding legal limits by up to 19 times.

How did Harita Nickel try to cover up the contamination?

Harita Nickel attempted to cover up the contamination by withholding internal reports from the public and investors, denying the allegations of pollution, and failing to disclose the full extent of the environmental damage during their public offering.

What role did the Indonesian government play in this situation?

The Indonesian government was aware of the breaches in environmental regulations but failed to intervene effectively. There were instances where Harita asked government officials to delay informing the community about the pollution, highlighting the lack of proper oversight.

How did the contamination affect the local community?

The local community, particularly in Kawasi village, suffered from contaminated water sources, affecting their health. Fish, a primary food source, also showed high levels of toxic metals, further threatening the villagers' livelihoods and well-being.

What steps did Harita Nickel take to protect its public image despite the pollution?

To protect its public image, Harita Nickel issued press releases downplaying the contamination and showcased its commitment to sustainability, even as internal documents revealed the company had known about the pollution and failed to act on it.

What actions are being taken to address Harita Nickel's practices?

Harita Nickel is undergoing an audit by the Initiative for Responsible Mining Assurance (IRMA), which is expected to evaluate the company's environmental practices and sustainability. Local protests and calls for accountability are also growing.

Why is the electric vehicle (EV) industry's reliance on nickel a major factor in this issue?

The growing demand for EVs has significantly increased the need for nickel, making mining operations like Harita's more lucrative. This high demand has led to global pressure to extract more nickel, often at the cost of environmental and ethical concerns.

What legal or financial repercussions could Harita Nickel face due to its actions?

Harita Nickel could face criminal, civil, and administrative sanctions for its environmental violations. Legal experts suggest that the company could be forced to stop operations or undergo significant remediation efforts. The audit by IRMA could also impact the company’s reputation and its ability to attract investors.