Case Study: PT. International Nickel Indonesia Tbk.
Complete an environmental impact assessment to attain AMDAL approval for PT. International Nickel Indonesia Tbk.’s proposed nickel mine in Indonesia.
PT. International Nickel Indonesia Tbk. (PT Inco) began mining and producing nickel in matte (a 78 percent intermediate nickel product) in Sorowako, Sulawesi, Indonesia in 1977. Reserves are estimated to last for more than 30 years and PT Inco has full mining rights until 2025.
Thanks to new technology, PT Inco discovered a way to increase production by more than 30 percent. This involved switching from high sulfur fuel oil to pulverized coal. To make this conversion PT Inco needed to meet the Environmental Impact Assessment (EIA) requirements of the Indonesian Ministry for Environment’s EIA framework, otherwise known as AMDAL. The company contracted ERM in early 2007 to undertake an EIA to gain AMDAL approval.
ERM collected air quality and socioeconomic data while following the strict public engagement processes set up by AMDAL.
ERM submitted terms of reference for the project, which the relevant authorities approved. This was followed by submission of an Environmental Impact Statement (ANDAL) accompanied by environmental management and monitoring plans (RKLs and RPLs respectively).
Benefits and Value
AMDAL approval was granted in early 2008 and the conversion to pulverized coal should begin this year.
World nickel demand is currently exceeding supply by 30,000 ton per year. PT Inco has the very lucrative opportunity to fulfill this demand and will potentially increase Indonesia’s gross domestic product by 0.36 percent.
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