Berliner Boersenzeitung - Indonesia seizes part of nickel site over forest violations

The Weda Bay Nickel concession, which has long been criticised by environmental and Indigenous rights groups for its effects on surrounding forest, spans 45,000 hectares on Halmahera island.

Authorities have now seized nearly 150 hectares that encroached into forest areas without obtaining a licence, Anang Supriatna, spokesman for Indonesia's attorney general's office told AFP.

"The taskforce has taken over the area by sealing it, and the land will be returned to the government," he added.

Weda Bay Nickel is a joint venture of Indonesia's Antam and Singapore-based Strand Minerals, whose shares are divided between French mining giant Eramet and Chinese steel major Tsingshan.

In a statement, Eramet said the area seized was "a quarry producing rocks for construction materials and maintenance," and mining operations were not affected.

The seizure comes as Indonesia's government examines potential forestry regulation violations across several industries, including the palm oil and mining sectors.

The concession, which says it accounted for 17 percent of global nickel production in 2023, has long been the target of criticism for its environmental impact.

An AFP investigation earlier this year showed its effects on members of one of the country's last isolated hunter-gatherer communities -- the Hongana Manyawa Indigenous tribe.

The community, parts of which remain uncontacted, says the forest they have long relied on for food and shelter is being destroyed by deforestation and environmental degradation linked to the mine.

WBN denies the allegations and says it is committed to "responsible mining and protecting the environment."

Activists said the seizure was unlikely to change the broader concession's impact on local communities, and urged the government to turn the seized land over to affected residents.

"If the seizure is aimed for the benefit of the people, than the people should be the ones managing it," Melky Nahar, coordinator of the Mining Advocacy Network environmental group, told AFP.

Nickel is central to Indonesia's growth strategy. It banned ore exports in 2020 to capture more of the value chain.

The country is both the world's largest producer and home to the biggest-known reserves.

Mining -- dominated by coal and nickel -- represented nearly nine percent of its GDP in the first quarter of 2025, government data showed.

(P.Werner--BBZ)