Harita Nickel's Response to Recent Report Regarding Decarbonization

28 March 2025

To our stakeholders and valued members of the media, 

We are writing today to address recent concerns raised in the media and in industry reports. In the first instance, we refer to prior media responses explaining our approach to environmental and human rights protection. For specific concerns on water quality, marine damage and tailings management, please read our response to the Washington Post. On the topic of Free Prior and Informed Consent (FPIC), and avoiding inappropriate use of force, we direct you to read our response to the BBC or our support of the government-led resettlement initiative.  

To add context, we have included independently verified information on our third-party human rights due diligence, and our Landscape Approach to sustainable development. Further details are released annually in our Sustainability Reports. Finally, we would like share a brief update on our decarbonization process and have included some recent images of our operations.

Energy sources on Obi Island

Nickel remains essential to clean energy transition, medical advancements, and various industrial applications. However, nickel processing requires a stable, high-volume energy source that is not yet fully achievable through renewables alone. To tackle emissions reduction in line with our targets, we conducted comprehensive viability assessments, partnering with expert entities like USAID SINAR and Climate Smart Ventures.

These studies identified both limitations and opportunities. Our remote location complicates the integration of renewable energy technologies, so we have widened our scope, even surveying the possibility of hydrogen or biomass technologies as part of our decarbonization planning.

Emissions Reduction

In October 2024, a study by The Institute for Energy Economics and Financial Analysis (IEEFA) projected the future emissions of Harita Nickel’s operations. The projection assumed that emissions intensity is fixed at 2023 levels, however, this assumption is not in line with our actual progress in emissions reduction.

Harita Nickel’s emissions intensity for all products has decreased in 2024 from 2023 levels (detailed, third-party assured data to be published in the upcoming 2024 Sustainability Report). With our various improvements and technological improvements, we expect our emissions intensity to further decrease in the coming years.

Harita Nickel remains committed to a 30% emissions reduction target for all facilities established on or before 2022. This approach is aligned with a science-based approach, as per our Sustainability Policy.

We are achieving these reductions with our integrated decarbonization strategy:

1. Expert Collaboration: Developed in cooperation with Climate Smart Ventures, drawing insights from the 2023 USAID SINAR study.
2. Holistic Approach: Active collaboration with global industry leaders, cross-sector specialists, and technology providers.
3. Compliance with Global Standards: Emissions tracking aligned with the GHG Protocol and ISO standards (Scope 1-3), and lifecycle analysis consistent with ISO 14040 and ISO 14044.
4. Operational Efficiency: Implementation of ISO 50001 to systematically enhance energy management and combustion efficiency.
5. Energy Diversification: Evaluating diverse renewable energy technologies, with solar power as a central component. We have currently deployed solar power to power office buildings, worker housing, street lighting, and telecommunications infrastructure. Within the next few months, the first 40 MW phase of our planned 300 MWp solar facility will become operational.
6. Technology Optimization: Scaling up initiatives including waste heat recovery, biofuels, electric vehicles, and renewable energy integration.

Decarbonization requires significant investment, highlighting the importance of sustainable financing. We value our financial partners' support and remain dedicated to responsible mining, regulatory compliance, sustainability, and stakeholder engagement.

Recent Images

Finally, we've noticed several incorrect or outdated images circulating in the media. To address this, we have included some more recent photographs below and a video that shows the current situation of our operations including the shoreline.

Stakeholder engagement is a vital part of sustainable operation, so we welcome further engagement with the media or our other valued stakeholders either online or at our offices in Jakarta.