Nickel Mining Resumes on Gag Island Amidst Environmental Concerns
Mining operations at Gag Nikel on Gag Island resumed on September 3rd,following a suspension since June. The Indonesian Environment Ministry lifted the suspension after reviewing data related to the company’s mining activities and subsequently awarded Gag Nikel a “green” rating, signifying compliance with the ministry’s annual environmental standards.
However, the ministry has stated it will halt operations again if environmental damage is detected. Environment Minister Hanif emphasized the need to “strike a balance between development and environmental protection,” speaking on September 14th.
Gag Nikel is one of five nickel mines operating in the Raja Ampat archipelago, a region renowned for its marine biodiversity. All mining in the regency was temporarily halted in june due to public and international concerns regarding the environmental impact of nickel extraction in the ecologically sensitive area.
While the government did not impose a complete ban on nickel mining, it revoked the permits of four other companies – PT Kawei Sejahtera Mining, PT Mulia Raymond Perkasa, PT Anugerah Surya Pratama, and PT Nurham – due to their failure to submit their 2025 Work Plan and Budget (RKAB) reports, a requirement for continued operation.
Gag Nikel was initially allowed to continue mining as its RKAB had been approved,but operations were later suspended for further environmental assessment. The company originally received a 50-year special mining license in 1998 through a Contract of Work (KK), and was acquired by Antam in 2008, beginning operations in 2018 after securing all necessary permits, including environmental impact analysis (Amdal) approval.
greenpeace Indonesia reports that nickel mining on Gag, Kawe, and Manuran islands has already resulted in the destruction of over 500 hectares of forest and vegetation. The institution warns that resuming Gag Nikel’s operations could further endanger Raja Ampat’s marine ecosystem, home to 75% of the world’s hard coral species, and potentially lead to the island’s sinking due to climate change.
Indonesia possesses the world’s largest nickel reserves and is the leading producer of nickel, a key component in electric vehicle batteries and stainless steel. A 2020 export ban has fueled growth in the domestic nickel mining and processing industry, a crucial element of Indonesia’s economic strategy.
