03 May 2024
Harita Nickel received an inquiry for reporting purposes from the BBC on behalf of Shawn Yuan on April 15, 2024. In correspondence via email, Shawn requested confirmation regarding statements from BBC sources alleging that Harita Nickel's mining practices have negatively impacted the lives of residents.
To provide accurate answers, Harita Nickel requested detailed information regarding the questions posed in the response correspondence on April 17, 2024. Harita Nickel also provided several references that BBC could use to support their reporting.
Correspondence continued on April 24, 2024, through a follow-up email requesting further detailed information on the claims from BBC sources and stating that Harita Nickel's response could be sent before 1500 British Summer Time, April 26.
Through a response email on April 26, 2024, Harita Nickel conveyed that they had not yet received supporting data, documents, or specific evidence related to the claims from BBC sources. Nevertheless, Harita Nickel provided responses to various concerns from BBC sources.
Below is the complete response provided by Harita Nickel in correspondence with Shawn Yuan:
26 April 2024, 18:37 GMT+7
To: Shawn Yuan – BBC
Dear Shawn,
Thank you for replying and for giving Harita Nickel the opportunity to address the concerns detailed in your correspondence. We take these issues seriously and value the chance to clarify our position and ongoing efforts.
In order to provide the most informed and precise response, we kindly request any supporting data, documents, or specific evidence that your sources may have provided regarding the allegations. As we do not have access to the documentation, data points, or timelines mentioned by your sources, this information is crucial for us to address these issues accurately. Meanwhile, we are more than happy to share details of our practices and the steps we take to address and mitigate such concerns.
To enhance the transparency of all aspects of our responsible business practices, we have started the process for assessment by the Initiative for Responsible Mining Assurance (IRMA), as indicated in this list here on IRMA’s website. The assessment report will be publicly available and will provide an independent, comprehensive assessment of our practices in the areas of environment, social and governance against the IRMA standard. IRMA’s standards are overseen by a board that includes NGOs, community rights groups, and labor rights groups, alongside industry representatives (https://responsiblemining.net/about/board). IRMA is supported by a large and diverse membership base (https://responsiblemining.net/members-partners/).
Additionally, to affirm our commitment to Human Rights, we conducted a Human Rights Due Diligence Assessment in October 2023 via the Foundation for International Human Rights Reporting Standards (FIHRRST) led by Marzuki Darusman, a seasoned lawyer and human rights activist. FIHRRST assessed our operations in line with the United Nations Guiding Principles on Business and Human Rights (UNGP). The assessment, summarized on our website here. The FIHRRST team conducted extensive interviews with community members in villages close to our operations, our workers, NGO and government representatives, and found no evidence of land rights violations or pollution of community land.
In your previous message, you mentioned, ‘Mining activity has caused widespread deforestation of old-growth high-biodiversity forests leading to polluted rivers and seas—disrupting the key industry of fishing and affecting the health of residents.'
While we haven’t received specific documentation regarding the environmental concerns mentioned, the company and other affiliated companies do not cause widespread deforestation, which pollutes rivers and seas, disrupts key industries, and affects the health of the residents surrounding our operation.
As declared in the company’s Sustainability Policy, we commit to high-standard environmental practices that comply with national regulations and international standards. The company has obtained and complies with all environmental permit requirements for its operations. The North Maluku Province Environmental Service regularly monitors Harita Nickel’s compliance with environmental management and monitoring obligations and has declared the company to be fully compliant, as stated in the evaluation reports on the implementation of the Environmental Management Plan and Environmental Monitoring Plan on March 12, 2023.
To prevent and, if necessary, mitigate potentially negative impacts of our operations, the company has implemented an Environmental Management System (EMS) that outlines the distribution of roles and responsibilities for implementation. In 2023, several business units received ISO 14001 certification for our implementation of Environmental Management Systems. Harita Nickel has also received the PRATAMA Award from the Indonesian Ministry of Energy and Mineral Resources for its achievements in environmental management of mineral and coal mining for a group of business entities holding mining permits for mineral and coal commodities.
Further, our expansion strategy on Obi Island is guided by a Landscape-level Nature Risk Assessment (LNRA). This assessment identifies ‘no-go’ and ‘go with care’ areas, taking into account the characteristics of the landscape, the allocation of permits, and the prevention of any potential impacts and environmental disturbance associated with our activities. The LNRA also considers environmental threats unrelated to the company’s business activities and aims to prevent them. This study indicated that the Group’s operations cover just 1.4% of the entire Island.
For every activity that requires an environmental permit, we conduct an Environmental and Social Impact Analysis (referred to as Analisa Manajemen Dampak Lingkungan in Indonesian regulations). Operations cannot commence until this permit has been secured. Furthermore, we avoid sustainability high-risk areas where possible and adhere to the recommendations of High Conservation Value (HCV) assessments. Previous studies have shown that Harita Nickel does not operate in the area of Protected Forests (HL), conservation areas, Ramsar sites, Important Bird Areas (IBA), Endemic Bird Areas (EBA), or Peat Hydrological Units (KHG). Additionally, we conduct a yearly biodiversity survey to monitor flora and fauna in all operational areas. For more details on this, please refer to our 2022 Sustainability Report here.
In order to perform environmental management and monitoring, the company also cooperates with accredited independent laboratories to conduct monitoring of emissions, ambient air, and noise in various locations as mandated by the Government. Furthermore, the company has also conducted the monitoring at compliance points for wastewater disposal, from both domestic and mining activity waste in accordance with the Waste Water Disposal Permit and the results are in line with the Quality Standards set by the Government. To minimize air pollution, the company’s power plants and RKEF facilities are outfitted with Electrostatic precipitators (ESP) allowing for the capture of 98.8% of the dust produced before it exits the chimney.
The company has installed a SPARING tool (Continuous Monitoring Tool) at the water discharge compliance point location. Meanwhile, to fulfill its monitoring obligations in the power plant area, the company has also installed a Continuous Emission Monitoring System (CEMS). The company has also reported waste management on the SIRAJA WASTE application, part of an online environmental reporting system (SIMPEL) owned and operated by the Ministry of Environment and Forestry.
In regards to the allegations of the fishing industry being affected, fishermen in Kawasi village still conduct their livelihood by fishing as they have always done even before the company existed. In collaboration with Universitas Khairun Ternate, the company has also conducted a survey assessing the fishing industry in Kawasi Village. The survey revealed that the local community of Desa Kawasi does not primarily engage in fishing as a full-time occupation. Fishing is mostly a part-time activity aimed at fulfilling daily consumption needs rather than for commercial purposes. The company is actively involved in ecological assessments and conservation initiatives such as reef cube deployment to enhance the sustainability of the marine environment. Fish caught by local fishermen are sold within the community and to nearby businesses. A market for smoked fish, fish crackers, and tuna sambal exists, supported by the local community and corporate social responsibility (CSR) initiatives from Harita Nickel.
On March 18-19, 2023 the company sponsored a Fishing Tournament, which was attended by participants from Kawasi Village, Soligi Village, and the company’s employees. The total number of participants in the competition was 193 people where in this activity a total of 237.67 kg of fish were caught, and the winner of this fishing competition caught a fish with a total weight of 23 kg. We are planning to continue the initiative this year and hold the fishing tournament in May 2024. This evidenced that there are abundant fish in the ocean surrounding Kawasi and Soligi Village, as this was only a one-time activity resulting in a significant number of fish caught. Furthermore, our marine conservation team monitors local fish population regularly, and has found no decline.
On this topic, you mentioned in your message, “Videos show rivers that were, before the mining operation started, clear and drinkable now have a dark-brown taint. Sources say that they can no longer drink the water because it’s contaminated. Mining watchdogs say drinking the water will cause long-term health problems. Villagers in certain places are now having to resort to buying purified water for daily usage – something that they did not have to do before the mine started operating. Those who cannot afford this are being forced to drink polluted water.”
On this allegation we would also like to request more details on the allegations so that we can address the concern properly, such as the location and time of the video taken, details, locations, evidence, and documentation that clarify the allegations of contaminated drinking water source after the mining operation. It will be helpful for us to be able to provide a more proper and informed response. Nevertheless, we would like to stress that, to date, Harita Nickel monitors water quality at the Kawasi Spring (the main local drinking water source), and independent tests have confirmed that relevant indicators meet the quality standards for drinking water set by the Indonesian government. Additionally, Harita Nickel has constructed a water distribution system from the spring, which provides water to 279 households.
Picture of Harita Nickel’s Environment monitoring and testing the water quality of Kawasi Springs. This is a water source for the Kawasi Villagers. As an additional reference, here is a video report by TribunNews, one of the top national media, that has visited the site to investigate the water pollution allegation.
The results of Kawasi spring water analysis for more than 10 years (2013 – January 2023) evidence that the quality of Kawasi spring water is suitable for consumption and in line with the water quality standards set by the Government.
On April 7-10 2023, 12 national media editors visited our operational site and directly witnessed the operations, environmental management, and monitoring that the company is conducting. The company also allowed the media to take water samples from the Kawasi Village Spring and conduct testing at an accredited independent laboratory appointed by the Ministry of Environment and Forestry. Some example of news report from one of the media visiting here.
In your previous message, you mentioned that “hundreds of villagers have been displaced by the mine and sources have told us that they were given below market compensation and that the relocation areas are unsafe for housing – as there is the credible threat of landslide.”
While we need more details and documentation on the hundreds of villagers you mentioned and the details of the alleged unsafe housing, the company did not carry out forced evictions and unfair land transactions with the residents, and the company prepared no unsafe housing in the resettlement program. As of this time, the company has never expanded its operations into areas where previous settlements existed.
The company builds and maintains regular communications with local communities, both formally and informally. It has also developed a grievance mechanism that is open to the local communities’ perspectives and problems, including a formal process to address and resolve grievances. Detailed records of grievances and their status are published annually in our Sustainability Report.
The spirit of respect for the community is also shown in the construction of the new settlement of Kawasi Village, which was an initiative of the Regional Government in accordance with the Memorandum of Understanding signed with the South Halmahera Regent on 30 April 2019, requesting the company's support, participation and contribution in the resettlement program for Kawasi people as part of local Government’s preparations for the expansion of Obi Southwest District.
The company provided land and constructed new facilities to ensure the community could thrive with enhanced infrastructure, including reliable 24-hour electricity, better healthcare facilities, and educational institutions. We ensured transparency and community engagement throughout the process, adhering to international standards for resettlement and compensation. Feedback mechanisms were established to incorporate community input and address concerns throughout the transition. A more detail information on the new settlement of Kawasi Village can be check here and an in-depth of view of the new settlement area of Kawasi village can also be viewed here.
Prior to constructing the new settlement of Kawasi Village, the company has also conducted various social, economic, and cultural studies in collaboration with Khairun University Ternate. Thus, all the decisions related to the construction of new settlements are taken with reference to and supported by scientific studies.
In your message, you mentioned, “Our sources have also detailed how the Indonesian military and police are protecting the mine and have carried out physical and verbal intimidation against those who protested or have refused to relocate. They also said that they were threatened with legal action for disrupting public security if they continued to protest. The accusation from them is that you have a close relationship with the security forces, and they are actively, on your behalf, carrying out rights abuses.”
Without specific timelines and details for the allegations, it's challenging to respond properly to that particular allegation. Still, our commitment to human rights and improving local community welfare is unwavering. The company does not, directly or indirectly, carry out physical and/or verbal intimidations in any situation. The company has also never initiated relocation of any groups or individuals. Because of our status as a National Strategic Project (PSN), public security forces are allocated to work with our security team. This is a standard procedure, according to Indonesian legal requirements.
On this topic, you mentioned, “We have also been told that reporters covering the mine and its impact have been followed by the security forces – creating a chilling environment on free speech.”
The company supports freedom of the press and takes any allegations of interference seriously. We would appreciate it if you could give us more details on the journalistic interference allegations you mentioned in your message.
The company embraces transparency and is always open to all its stakeholders. The company is regularly visited by the government and other authorities, journalists, customers, suppliers, partners, as well as NGO activists. We require all visitors to show clear intentions and credentials, considering that the company holds the status of a National Strategic Project and National Vital Object, which requires us to ensure security in and around our operational area. Therefore, every person entering our operational area must be accompanied by operational production professionals and wear protective equipment to ensure personal safety.
Apart from the grievance mechanisms that are publicly available, we have been building good relationships and communications with national and local media, especially ones that are officially verified by the National Press Council, which many of them have been invited or has visited our operation site at Obi Island. This also includes international media in the region, such as BBC. So far, we have not received any reports or claims on such allegation.
We welcome ongoing dialogue and are open to third-party audits to verify our practices. Our commitment to continuous improvement drives us to constantly enhance our environmental and community initiatives.
We trust this response addresses your concerns, and we are prepared to provide further information or engage in a direct dialogue should that be helpful.
Thank you for your attention to these matters. We look forward to your balanced and fair reporting.
24 April 2024, 19:08 GMT+7
From: Shawn Yuan – BBC
Hello,
Thank you for your follow-up and request for more clarity on the allegations. I am writing back with more details regarding the claims raised by our sources against Harita Group, which we intend to use in our report which will be published in the near future. We would need your response by Friday, April 26.
We have spoken to residents and mining watch dog who have detailed extensive environmental damage to what was a pristine environment of global significance in Obi Island.
Mining activity has caused widespread deforestation of old growth high biodiversity forests leading to polluted rivers and seas – disrupting the key industry of fishing and affect the health of residents.
Videos show rivers that were, before the mining operation started, clear and drinkable now have a dark-brown taint. Sources say that they can no longer drink the water because it’s contaminated. Mining watch dogs say drinking the water will cause long term health problems. Villagers in certain places are now having to resort to buying purified water for daily usage – something that they did not have to do before the mine started operating. Those who cannot afford this are being forced to drink polluted water.
Hundreds of villagers have been displaced by the mine and sources have told us that they were given below market compensation and that the relocation areas are unsafe for housing – as there is the credible threat of landslides.
Our sources have also detailed how the Indonesian military and police are protecting the mine and have carried out physical and verbal intimidation against those who protested or have refused to relocate. They also said that they were threatened with legal action for disrupting public security if they continued to protest. The accusation from them is that you have a close relationship with the security forces, and they are actively, on your behalf, carrying out rights abuses.
We have also been told that reporters covering the mine and its impact have been followed by the security forces – creating a chilling environment on free speech.
Please provide any response to these allegations by 1500 British Summer Time, April 26. Thank you for your attention and we will carefully consider any information that you present in relation to these allegations outlines above.
17 April, 2024, 10:57 GMT+7
To: Shawn Yuan – BBC
Dear Shawn,
I’m Ekhel from Harita Nickel’s Corporate Communications team, and it’s a pleasure to e-meet you. Thank you for your email and for reaching out to Harita Nickel with your inquiries regarding our operations on Obi Island. We appreciate your commitment to balanced and accurate reporting.
In order to address your queries most accurately and provide the most informed responses possible, could you please provide additional details or clarify the sources regarding the allegations mentioned in your email? Specifically, information on how these claims were documented or any relevant reports that were compiled would be extremely helpful.
Meanwhile, we are more than happy to share with you some references to aid your immediate research.
To affirm our commitment to Human Rights, including community rights, we conducted a Human Rights Due Diligence Assessment in October 2023 via the Foundation for International Human Rights Reporting Standards (FIHRRST) led by Marzuki Darusman, a seasoned lawyer and human rights activist. FIHRRST assessed our operations in line with the United Nations Guiding Principles on Business and Human Rights (UNGP). The assessment, soon to be summarized on our website, included a wide range of stakeholders. Everyone from employees to supply chain partners, service contractors, communities near or downstream from Harita Nickel sites, civil society actors, and vulnerable groups, such as women and girls and people with disabilities, was consulted. The FIHRRST team also conducted extensive interviews with community members and workers in ten neighboring villages close to where Harita Nickel operates and found no evidence of land rights violations or pollution of community land.
Regarding the allegations of forced land sales and collaboration with local authorities, Harita Nickel adheres strictly to ethical business practices and local laws. Any acquisition of land follows legal processes, and we strive to ensure that all agreements are fair and transparent. Our land development process is guided by the principles of Free Prior and Informed Consent (FPIC) and we have adopted a collaborative, participatory approach to upholding land and customary rights and musyawarah – a concept that embraces consensus decision-making. For more detailed information on our community engagement practices and our commitment to human rights, please refer to the “We and the Community” section on our sustainability page, Harita Nickel’s Community Engagement.
Regarding the environmental concerns and community relations you mentioned, Harita Nickel is committed to responsible mining practices and the well-being of local communities. We take these matters seriously and are continuously working to address and mitigate any negative impacts associated with our operations. The details are available in the “Climate Change” section of our sustainability portal, Harita Nickel’s Climate Action.
For residents' relocation, Harita Nickel ensures that any resettlement complies with international standards and local regulations, prioritizing the safety and well-being of all relocated individuals. For insights into our resettlement projects and housing quality, please visit The New Kawasi Settlement page, which provides details on our approach and ongoing efforts to improve living conditions.
Please find below several additional resources that might help in answering some of your questions.
We understand the seriousness of the issues raised and are committed to investigating these claims thoroughly. In the meantime, we encourage you to review the provided links for a broader understanding of our sustainability initiatives and community relations efforts.
Thank you once again for your due diligence and kind attention towards Harita Nickel.
15 April 2024, 16:26 GMT+7
From: Shawn Yuan – BBC
Dear Harita Group staff,
Hope email finds you well. My name is Shawn, and I am a journalist with the BBC. I am reaching out to you regarding a story we are working on related to Harita Group’s operation in Obi Island.
Our sources living in the vicinity of your nickel mining and refinement projects in Kawasi village told us your mining practices have negatively affected the life of residents. They accuse the company of forcing residents to sell their land under market price and working with local police and army to fend off residents who refused. They also speak of the pollution issues that deemed the water undrinkable, caused deforestation and polluted the air. Additionally, another source said Harita Group is relocating residents to housings that are poorly built, so their lives are sometimes in danger.
In the interest of ensuring balanced and accurate reporting, we believe it’s essential to contact you with an opportunity to respond or private additional context. As such, I am writing to request your comments or clarification you may have regarding the information presented above.
Thank you and I’m looking forward to hearing back from you.
Kind Regards,
Shawn
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