GEM says Indonesia nickel output on track after landslide, denies permit risk
Tuesday, March 17 2026 - 07:36 AM WIB
By Dominikus
China’s GEM Co., Ltd. said its nickel operations in Indonesia remain on track despite a landslide incident in February that affected part of its facilities, while denying reports of a potential environmental permit revocation.
The clarification was made by Pan Hua, Secretary of the Board of Directors, in a response published on the cninfo investor interaction platform on Monday (16 March).
The incident occurred at a temporary slag storage area within the Qingmeibang project operated by PT QMB New Energy Materials, a subsidiary of GEM Co., Ltd., located at the Indonesia Morowali Industrial Park (IMIP) in Central Sulawesi Province.
Pan said the landslide was triggered by heavy rainfall and that the company had completed the required rectification measures. He added that there was no issue related to permit revocation, addressing rumors circulating among investors.
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The company said the impact was limited to part of the high-pressure acid leach (HPAL) production capacity and had a relatively small effect on overall operations.
GEM is currently accelerating the completion of a permanent slag storage facility to restore full production capacity as soon as possible.
Despite the disruption, the company reported that its Indonesia operations have produced nearly 20,000 tons of nickel metal so far in 2026, up around 10% year on year, along with approximately 1,800 tons of cobalt metal, marking a 20% increase.
Pan also noted that part of the recent slowdown was linked to routine maintenance carried out during the Eid holiday period in Indonesia, with production lines undergoing scheduled checks for one to two weeks.
The statement follows multiple investor inquiries regarding reports of a fatal accident and potential regulatory action at the site.
Editing by Reiner Simanjuntak