Nickel mining reduced forest cover in Indonesia but had mixed outcomes for well-being
Michaela Lo, Courtney Morgans, Truly Santika, Sonny Mumbunan, Nurul L. Winarni, Jatna Supriatna, Maria Voigt, Zoe G. Davies, Matthew J. Struebig
Abstract
Soaring demand for nickel to support the low-carbon transition is driving extensive mining in mineral-rich countries, but the environmental and social impacts of nickel mining remain underexplored. Here, we use a counterfactual approach to examine nickel mining outcomes on forests and well-being of nearby communities in Sulawesi, Indonesia – a region renowned for its biodiverse tropical forests, and now a global centre of nickel production. By examining changes across 7,721 villages between 2011 and 2018 we show that deforestation doubled in nickel mining villages. During the early stages of mining, environmental well-being, living-standards, and education outcomes declined, but improvements were observed in health, infrastructure, and social relations. Environmental well-being continued to substantially deteriorate in the later stages of mining production, especially in villages with already high poverty. These findings highlight the environmental and social consequences of nickel mining, underscoring the need for greater accountability of local outcomes if the sector is to support a just and sustainable low-carbon transition.