Indonesia plans to introduce nickel tracking and push local producers to meet global mining standards to help the country move closer to a major minerals deal with the United States.
Septian Hario Seto, deputy Minister of Maritime and Investment Coordination, said in an interview that from next quarter, every tonne of nickel ore sales will be tracked through the SIMBARA portal. He added that head producers would also be encouraged to obtain certification from global entities such as the Responsible Mining Assurance Initiative.
Those in charge of investment coordination and mining operations at the ministry said the international certification will ensure that the company's environmental, social and governance practices are recognized. "Whatever the deal with the United States, this is for our own interests," he added.
Indonesia is pursuing a major minerals deal with the United States to help achieve its goal of building an entire onshore electric vehicle supply chain using the country's abundant nickel resources. The leader's Widodo Jokowi met with U.S. President Joe Biden earlier this week and agreed to continue working toward such a deal.
Tin and cobalt are also being tried to trace metals to ensure they meet environmental and labor standards. However, traceability can be very difficult to implement and monitor, and also requires the support of miners and refiners, who must bear the additional costs. Indonesia's mining and metal processing industries are also responsible for most of the country's emissions.
Billions of dollars of investment have poured into Indonesia in recent years to refine nickel into a raw material for batteries. But the industry is dominated by Chinese companies, which puts Indonesian products at risk of being shut out of the US and European markets.
However, there are signs that American and European companies are catching up. Ford Motor Co. has taken a stake in an Indonesian battery nickel plant being built by Vale Corp. and Zhejiang Huayou Cobalt Co., while BASF Corp. and Erhman Co. plan to build a $2.6 billion nickel-cobalt refinery in the country.
The Southeast Asian country has taken steps to improve its labor and environmental standards. Earlier this year, after deadly clashes and accidents at several plants, the government sent teams to smelters across the archipelago to investigate and ensure they complied with existing rules.
