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Indonesian nickel plants halt output after deadly landslide

Eddie Spence, Alfred Cang & Harry Suhartono / Bloomberg
Eddie Spence, Alfred Cang & Harry Suhartono / Bloomberg • 2 min read
Indonesian nickel plants halt output after deadly landslide
The Indonesia Morowali Industrial Park in Morowali Regency, Central Sulawesi.
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(March 9): Four Chinese-run nickel plants in Indonesia have shut down temporarily after a deadly landslide last month at a waste area used by one of the facilities, a sign that companies are being forced to respond to greater official scrutiny of the sector.

The four high-pressure acid leaching plants operated by China’s GEM Co at the Indonesia Morowali Industrial Park, a massive nickel-producing hub on the island of Sulawesi, have halted production while the waste site is restored, according to people familiar with the matter. The disruptions affect facilities that jointly account for 30% of Indonesia’s HPAL capacity.

The suspension at PT QMB New Energy Materials, where the accident occurred, could last as long as three months, said the people, who asked not to be named citing private matters. The QMB plant is the biggest of the four, and GEM is a major shareholder along with Chinese producer Tsingshan Holding Group Co.

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