04 May 2025
To Our Valued Stakeholders,
We have taken note of the recent coverage regarding water management systems at Harita Nickel’s operations and their perceived environmental impact. We appreciate the attention and constructive input shared on this issue, as we believe that critical observations can serve as a catalyst for continuous improvement.
In this spirit, we acknowledge all stakeholder perspectives and share the aspiration that mining activities in Indonesia must uphold strong environmental, social, and governance (ESG) principles. This aspiration is why Harita Nickel is committed to undergoing rigorous assessments under the Initiative for Responsible Mining Assurance (IRMA)—widely recognized as the world’s most stringent and comprehensive mining standard. We are proud to be the first company in Indonesia to be independently assessed against IRMA’s standard, and we welcome constructive collaboration from all stakeholders as we work towards this important milestone.
We understand that questions will arise as expectations evolve, and we welcome open dialogue at any time. In recent years, we have taken meaningful steps to strengthen our environmental and social performance, and refer stakeholders to our Sustainability Reports, which document, our journey of continuous improvement.
While challenges remain, our focus remains firmly on advancing responsible practices across all areas of our operation. To support ongoing discourse with stakeholders, this response includes both technical and contextual information on our water management. We hope it clarifies any ongoing areas of concern and we welcome further discussion.
Our operations on Obi Island, South Halmahera, North Maluku, are situated in an area characterized by annually increasing heavy and prolonged rainfall. This demands a comprehensive and resilient water management system. Over time, we have refined our operational practices not only to comply with regulations, but to minimize environmental impact and ensure that surface runoff is responsibly managed and treated.
As part of this commitment, we apply integrated land-use planning that prioritizes environmental protection while supporting operational needs, including in the development of the Obi Industrial Area. Land clearing is carried out in accordance with spatial planning that balances infrastructure expansion with ecological considerations. Green open spaces are incorporated into the industrial area to support biodiversity and manage runoff.
This approach helps reduce environmental disruption and limits the exposure of bare soil to rainfall, which is essential for preventing erosion, controlling sediment run off, and mitigating the release of naturally occurring elements—such as metals—that could affect downstream water quality.
Our integrated water management system is designed to control runoff and protect environmental quality on a long-term basis. Drainage channels are equipped with drop structures to slow water flow, prevent erosion, and ensure that surface runoff undergoes sedimentation before entering sedimentation ponds.
Sedimentation ponds (IPAL) play a critical role in reducing Total Suspended Solids (TSS) to maintain water quality downstream. Pond capacity is continually scaled in proportion to land clearing within the watershed (catchment area). Water quality in these ponds is monitored regularly to ensure it complies with government standards.
For transparency and oversight, we support our physical infrastructure with SPARING devices to capture real time monitoring. These are installed at compliance points and connected directly to the Ministry of Environment’s national system, allowing for automated reporting of both flow and water quality data.
In addition, the potential presence of dissolved metals—including Chromium-6 from lateritic soils—is managed through sedimentation, flocculation, and coagulation processes prior to discharge. Regular sampling and laboratory analysis are conducted by accredited independent third parties.
In 2023 and 2024, independent assessments found no non-conformities related to water or environmental management across our operational areas.
In recognition of our consistent environmental performance, companies under Harita Nickel have maintained a Blue PROPER rating from the Ministry of Environment for two consecutive years. This achievement reflects the robustness of our systems and our long-term commitment to sustaining water resources both in and around our operational area.
In regions of high rainfall such as Obi Island, integrated and adaptive water management is critical.
At Harita Nickel, we employ a structured approach to ensure that every type of water—whether it’s rainwater or process water—is treated according to its characteristics. Our system is designed to respond to changing environmental conditions while supporting long-term sustainability.
Water is managed based on both its source and intended use within operations. This includes:
Responsible water management requires more than operational discipline; it demands long-term investment that integrates environmental, technical, and social dimensions. Many initiatives require time to be fully implemented and adapted to local conditions—particularly in dynamic ecosystems like Obi Island. Our commitment extends beyond infrastructure to continuous improvement efforts. Key ongoing initiatives include:
1. Community water parks and packaging facilities — This project includes freshwater aquaculture ponds and plant nurseries within a 20.92-hectare protected buffer zone to support community livelihoods and ecological restoration.
2. Expanded water recycling systems — Building on more than 7 million cubic meters of water savings per year, we are developing broader circular systems to further reduce reliance on freshwater sources.
3. Rainwater runoff strategies — We work with hydrology and climate experts to refine runoff management systems in response to increasing rainfall variability and more frequent extreme weather events.
4. Collaborative monitoring with universities and environmental organizations — We partner with local academic institutions, NGOs, and independent experts to expand coastal and inland water monitoring. This includes joint studies in hydrology and hydrogeology, and broader efforts to conserve water resources. Our environmental practices are grounded in scientific data and informed by community input.
At Harita Nickel, we believe sustainability is built on transparency, accountability, and meaningful engagement. We welcome open dialogue with all stakeholders—including local communities, media, and civil society organizations—and remain committed to building mutual understanding through transparent practices.
To that end, we have hosted visits from journalists, NGOs, academics, and expertsto witness our operations and water management systems firsthand. We continue to uphold this spirit of openness and invite others who wish to gain a direct understanding of our practices on the ground.
Each year, we publish water-related Global Reporting Initiative (GRI) indicators and related information in our annual Sustainability Report. The 2024 report, released on 30 April 2025 will outline our initiatives, achievements, and the challenges we face in implementing responsible mining practices.
In closing, water is a source of life for ecosystems, communities, and industries alike. Our commitment is to protect it, manage it responsibly, and continuously improve our practices while sharing progress openly as we work together to shape a future rooted in responsible mining. We hope this statement helps clarify the current state of our operations and reinforces our ongoing dedication to transparency, measurable progress, and meaningful stakeholder engagement.
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