Wedoany.com Report-Apr. 20, A landslide at Morowali Industrial Park, a major nickel production hub on Sulawesi Island, Indonesia, has prompted a temporary production pause and raised concerns about the safety of nickel extraction methods. Occurring in March 2025, the incident has drawn attention to the high-pressure acid leaching (HPAL) technique used in the park, critical for supplying nickel to the battery industry.

Nearby nickel producers have also reduced their output.

The landslide struck a tailings area managed by PT QMB New Energy Materials, resulting in two fatalities and one missing worker. While HPAL is efficient and reduces carbon emissions, it generates significant waste, requiring robust management to prevent disruptions. The incident, attributed to prolonged heavy rainfall by PT IMIP, the park’s operator, has not disrupted overall output, according to their statement.

GEM, QMB’s largest shareholder, clarified: “The production drop was due to scheduled maintenance and national holidays rather than the landslide.” However, an ongoing government investigation may reduce QMB’s output in April 2025. In the first quarter, QMB shipped over 25,000 tonnes of nickel, highlighting its role in global supply chains.

Indonesia, producing over half of the world’s nickel, faces potential supply risks if disruptions persist. Nearby producers have also scaled back operations, though they declined to comment publicly. The rise of HPAL, supported by investments from companies like Tsingshan Holding Group and Guangdong Brunp Recycling Technology, enables processing of lower-grade ore but increases waste management challenges.

Putra Adhiguna, managing director of Australia’s Energy Shift Institute, noted: “These issues should not be treated as isolated cases in different companies. They reflect a broader industry problem.” He emphasized the need for improved safety and environmental standards across Indonesia’s nickel sector, which has seen incidents like a 2023 smelter explosion that claimed 21 lives.

PT IMIP has introduced measures to mitigate geological risks, including land reclamation, leveling, and reforestation. These steps aim to enhance safety and prevent future incidents. Meanwhile, nickel traders in Southeast Asia have expressed concerns about recurring disruptions, given HPAL’s growing adoption.

In March 2025, the Indonesian Mining Association urged the government to reconsider proposed royalty rate increases, citing rising operational costs for miners. The full impact of the production pause at Morowali remains unclear, but the incident underscores the importance of balancing efficiency with safety in Indonesia’s nickel industry. Stakeholders are closely monitoring developments as the investigation continues.