Indonesia’s Major Nickel Plant Resumes Operations Following Fatal Landslide

A significant nickel processing facility in Indonesia has recommenced operations after a deadly landslide halted production. The incident, which occurred in late March 2025 at the Morowali Industrial Park in Central Sulawesi, resulted in the death of one worker and left two others missing. The landslide was triggered by torrential rains, causing a collapse in the waste disposal area managed by PT Indonesia Morowali Industrial Park (PT IMIP) .

The affected plant, operated by PT QMB New Energy Materials—a joint venture involving China’s Tsingshan Holding Group and GEM Co.—had to suspend operations temporarily. This suspension raised concerns about the global nickel supply, as Indonesia accounts for more than half of the world’s nickel output .

In response to the incident, PT IMIP announced measures to enhance safety and mitigate geological disaster risks. These include land reclamation, levelling, and reforestation efforts . Despite these initiatives, industry insiders anticipate reduced output from QMB in April due to ongoing government investigations into the accident.

The landslide has intensified scrutiny over the use of high-pressure acid leaching (HPAL) methods in nickel extraction. While HPAL is cost-effective and less carbon-intensive, it produces nearly twice the tailings, necessitating careful waste management to avoid production disruptions .

This incident follows a series of accidents in Indonesia’s rapidly expanding nickel industry, including a smelter explosion in 2023 that killed 21 workers. These events have prompted calls for stricter safety regulations and better enforcement to protect workers and the environment.