Nickel production disruption in Indonesia raises supply concerns (Mining Technology – April 15, 2025)

https://www.mining-technology.com/

A landslide occurred in a tailings area associated with PT QMB New Energy Materials in Indonesia’s Morowali Industrial Park.

Indonesia’s Morowali Industrial Park, a nickel-producing hub on Sulawesi Island, is facing a production halt and intensified scrutiny over nickel extraction methods following a landslide last month, reported Bloomberg.

The incident has raised concerns about the safety of high-pressure acid leaching (HPAL) methods used in nickel extraction and the future of a critical supply source for the battery industry. While HPAL is cost-effective and less carbon-intensive, it produces nearly twice the tailings, requiring careful waste management to avoid production disruptions.

The landslide occurred in a tailings area associated with PT QMB New Energy Materials, as reported by traders with knowledge of the matter. The incident resulted in two fatalities and one missing worker. Nearby nickel producers have also reduced their output, although they preferred to remain anonymous due to the sensitive nature of the information.

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