ESG Determines the Future of Nickel Mining Companies

Mining management practices with the principles of Environmental, Social and Governance (ESG) will increasingly determine the company’s progress in the future, including nickel. This was conveyed by the Deputy for Investment and Mining Coordination of the Coordinating Ministry for Maritime Affairs, Septian Hario Seto.

“So before talking about prices, about operations, they ask how the ESG is, so on average those who come here already know where they are going,” he said in a discussion held by Apniper For Sustainability with the theme ‘The Nickel Industry Towards Sustainability’, Monday (27/6).

Seto said, currently all global automotive companies are actively looking for nickel to produce electric cars. However, they don’t necessarily buy nickel from manufacturers before fulfilling the ESG element as stated by the Tesla team some time ago.

“They want to go to Vale and then to Antam. Because they know that Vale is a global company whose ESG publications are very good. So this is what we see,” he explained.

In fact, Seto continued, in Indonesia there are many other mines that have large reserves and also have good ESG practices.

Seto, who visited Tesla’s factory in Texas two months ago, said that if Indonesian nickel wants to go international , the ESG aspect of nickel mining companies must be carried out optimally.

“So environmental, social and governance are important and they have their standards. So if we want to take our nickel to a higher level, we need to increase the ESG,” he said.

In addition to Tesla, a global automotive company that is looking for domestic nickel is also being carried out by the Ford Motor Company. According to him, the car manufacturer from the United States has just launched the Ford F-150 Lightning series electric car.

Therefore, Seto continued, Ford plans to work closely with domestic nickel miners for the needs of its electric battery components.

“Last week it was the same from Ford. They were also surprised. They have just launched an electric car, the F 150. They are then confused to find the battery, where to find the nickel. Then call us and come right away. They are also looking for nickel,” he said.

“From this story, what is interesting is that all the automotive companies present said that ESG is number one,” he added.

Not to be outdone, Volkswagen also said Seto was conducting an assessment of Indonesian nickel mining companies. The difference is, VW is looking for low grade nickel or limonite. “Volkwagen has already negotiated directly with several mines in Indonesia. They are looking for limonite,” he said.