An environmental assessment of the Sorowako Mine in South Sulawesi Province, Indonesia
Nickel is used in the production of stainless steel, alloy steels and castings, plating, nickel- and copper-based alloys, and, increasingly, batteries for consumer electronics, electric vehicles, and energy storage (Nickel Institute, 2022). While the stainless steel industry accounts for two thirds of global nickel demand (Leni, 2018b), the electric vehicle and energy storage sector will be a major driver for increasing nickel demand in the next couple decades as shown in Figure 1. Currently, the most popular battery chemistry is Nickel-Manganese-Cobalt (NMC) and the composition ratio of these metals are changing to meet clients’ needs on price and safety (Leni, 2018a). The commercial use of the “equal-parts” 1-1-1 (N-M-C) ratio has now shifted to a 5-2-3 ratio and an 8-1-1 ratio is under development, making nickel by far the largest component of next-generation batteries (Leni, 2018a).
Figure 1. Nickel Demand Forecast to 2030 and 2040 due to Renewable Energy Development based on the *Stated Policies Scenario and the Sustainable Development Scenario (Garside, 2021)
There are two forms of economically extractable nickel deposits: sulphide ores or laterite ores (Nickel Institute, 2022). Sulphide ores are high grade, easier and cheaper to process however, they are found deep underground making them difficult and expensive to extract, as well as to discover (Leni, 2018b). On the other hand, laterite ores are typically lower grade, harder and more expensive to process however, they are found close to the surface making their extraction easy, cheap, more efficient and productive, as well as safer for miners through open-pit mining (Leaf Group Ltd., 2022; Leni, 2018b)
Indonesia’s abundance of nickel laterite ore reserves put them at the top country in the world for nickel availability (Statista, 2022). The Sorowako Mine in South Sulawesi Province is the largest nickel mine in Indonesia, based on total estimated production in 2020 which was 71,600 tonnes (Mining Technology, 2021). It is an open-pit surface mine owned and operated by PT Vale Indonesia (PTVI); a subsidiary of Vale, a global mining corporation headquartered in Brazil (MDO, 2022; Vale, 2017a). At the Sorowako Mine, tractors and shovels dig into the sides of targeted “contour” hills to mine laterite ore deposits (Figure 2). Large amounts of laterite ore are extracted and transported to the furnaces at the nickel processing facilities near Sorowako (MDO, 2022).
Figure 2. The Sorowako Mine: An Open-Pit Surface Mine (Alamy, 2022)
Open-pit mining is associated with negative environmental impacts such as deforestation, biodiversity loss, and habitat destruction (Leaf Group Ltd., 2022). Sulawesi is the habitat of endemic species such as vibrant hornbills, miniature water buffalo, babirusa, and tarsiers (Morse, 2019). It is a biodiversity hotspot with at least 1,500 endemic plants (Jatna Supriatna, 2020). As the land gets exploited for its nickel reserves and other economic activities, Sulawesi’s flora and fauna will suffer, and the rate of deforestation may accelerate. There is also a major human cost for the villagers inhabiting nearby regions of the island as the waste from the nickel processing facilities are flowing into nearby villages, causing erosion, sedimentation in creeks, and destroying the infrastructure (Morse, 2019). It is also contaminating the water with toxic substances, turning the seas red and making it harder to fish (Morse, 2019). It’s likely that continued nickel exploration will cause the relocation of many villagers.
Despite many promises and commitments for post-mining restoration and rehabilitation, it is not economically viable for PTVI to achieve this to a high standard in practice (Morse, 2019). The ecological value of the rainforest and biodiversity wiped out due to mining operations cannot be replaced easily (Morse, 2019). Typically, the destroyed rainforests are replaced by monocultures of largely non-native trees mainly to prevent erosion. Although, PTVI’s commitment to biodiversity restoration includes a nursery to plant native and endemic plants from seeds collected from the land before it was mined (Vale, 2017c). The nursery rehabilitates 100 km2 of post-mining land per year with an annual average production of 700,000 seedlings of local plants such as betao, bitti, nyatoh, and forest mangosteen (Vale, 2017c). However, the scale at which mining affects the local environment clearly outweighs the effects of post-mining restoration activities; more efforts are required.
The electricity for PTVI’s mining operations is primarily sourced from hydroelectric plants built on the Larona River by the company itself (Vale, 2020). There are three hydroelectric power plants operating on the Larona River: The Larona Plant (165 MW), The Balambano Plant (110 MW), and The Karebbe Plant (90 MW). The use of renewable energy at the Sorowako Mine reduces the carbon footprint, as well as energy bills, for PTVI. However, dams for hydroelectricity are known to affect marine life and fish migration, as well as the flora and fauna reliant on the river (eia.gov, 2021).
Figure 3. The Larona Hydroelectric Power Plant (Vale, 2017b)
In conclusion, the Sorowako Mine is a site of tremendous ecological value and interest for environmental scientists. To sustainably mine and process nickel laterite ores in the South Sulawesi Province, a lot of action is required to ensure the impact to human livelihoods and the surrounding environment is minimized. Although, PTVI’s mining operation at the Sorowako Mine is already a good example of sustainable growth of the industry. More mining operations must adopt the practices of PTVI such as renewable energy development, pre-mining seed collection, and biodiversity restoration nurseries.
By: Nikolaos Peroulakis
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