Indonesian Nickel Plants Halt Output After Deadly Landslide

The Indonesia Morowali Industrial Park in Morowali Regency, Central Sulawesi.

Photographer: Dimas Ardian/Bloomberg

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.