Case Study of the CAO's Approach to the PT Weda Nickel Mine Complaint: Barriers to Mediation in a Climate of Fear
Non-Judicial Redress Mechanisms Report Series 10
72 Pages Posted: 3 Dec 2016
Date Written: 2016
This report studies the human rights impact of the PT Weda Bay nickel mining company on indigenous and seaside communities in north-west Indonesia, and their attempts to stop the mine or gain fair compensation for loss of their land. It demonstrates the immense barriers to accessing meaningful redress for communities that are remote.
In 1998, a mining license was granted to PT Weda Bay nickel in respect to land located on Halmahera island in north Maluku, Indonesia. The mining licence would allow the company to proceed with a nickel mine, with potential for the extraction of 500 million tons of nickel. As of July 2016, the project remained suspended due to weak market conditions and in order to seek new investors, and the project had not yet entered phase one of construction. However, extensive land preparation for the construction project had already begun, as part of the project’s feasibility and exploration phase.
The project was embroiled in significant controversy over the disruption of the livelihoods of the affected villages, and the Tobelo Dalam, an indigenous tribe inhabiting part of the mine’s concession area. The initial exploration and feasibility phase of the project was marred by the encroachment of the rights of these people — including improper land acquisition and compensation procedures, corruption, intimidation sponsored by state and company, and also raised issues regarding cultural, environmental and health rights.
This report outlines a number of complaints made to transnational, non-judicial grievance processes about this project in Indonesia, focusing on the CAO.
Keywords: Business and Human Rights, Corporate Accountablity
JEL Classification: H7, F60, F66, K20
Suggested Citation: Suggested Citation