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(Bloomberg) — A landslide at one of the world’s biggest nickel smelting hubs killed one worker, the latest in a series of accidents at the Indonesian complex that is facing increasing scrutiny from the government.
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The affected area was at a waste dumping site belonging to PT QMB New Energy Materials Co. Ltd. in the Indonesia Morowali Industrial Park, where several excavators, bulldozers and dump trucks were swept away, a spokesperson for IMIP said in a statement. One worker died in the incident, according to a seperate statement from the local branch of the National Search and Rescue Agency.
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Indonesia accounts for more than half of the world’s output of nickel, but the smelting sector has been plagued by a string of accidents, the most serious of which was an explosion in late 2023 that killed 21 people in the same park and prompted a government probe. The latest incident echoes a fatal landslide last year that disrupted the output of QMB, which operates a high pressure acid leach plant, or HPAL, in the park.
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The industrial park and the broader nickel sector has faced greater scrutiny from the administration of President Prabowo Subianto, who is expanding the role of the state in Indonesia’s sprawling commodities industry. Last year the Ministry of Environment launched an audit into IMIP, seeking large fines against smelting firms alleged to have broken environmental laws. Miners are also facing massive financial penalties for operating outside of their permitted areas.
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Production by HPAL plants allows the extraction of a form of nickel used in electric vehicle batteries from low-grade ore. However, the process generates high volumes of waste, which are typically dried, compacted, and stored. Experts have questioned whether the waste, known as tailings, can be safely contained in the tropical archipelago, where torrential rain and earthquakes are common.
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China’s GEM Co. and Tsingshan Holding Group Co., the major shareholders of QMB, didn’t immediately respond to emails seeking comments during the Lunar New Year holidays.
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—With assistance from Alfred Cang and Eko Listiyorini.
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(Updates with detail in paragraph 2 and throughout)
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