On June 24, BASF and Eramet announced they would cancel a major project in Indonesia, citing concerns about its impact on an Indigenous community living in voluntary isolation. The companies said the decision followed worries related to the effects of the planned development on the tribe. The announcement was made in connection with the proposed Sonic Bay initiative.
Sonic Bay refinery plan on Halmahera
The Sonic Bay project was planned for the island of Halmahera in Indonesia’s North Maluku province. It aimed to build a refinery capable of producing 67,000 metric tons of nickel and 7,500 metric tons of cobalt each year. The metals were intended to be supplied from the nearby Weda Bay Nickel mine.
Weda Bay Nickel is described as the largest nickel mine globally. Eramet holds a minority stake in the mine. The project was positioned as part of a supply chain for battery materials used in electric vehicle batteries.
Company withdrawal from Weda Bay negotiations
BASF said it would halt all ongoing evaluations and negotiations connected to the Weda Bay project. The company’s move was characterized as a retreat from its earlier investment plans. Eramet’s decision was announced alongside BASF’s cancellation announcement on June 24.
Pius Ginting, coordinator of the Indonesian NGO Action for Ecology and Emancipation of the People (AEER), said BASF’s withdrawal reflected more than market conditions. He pointed to environmental risks linked to Weda Bay Nickel’s environmental performance. Ginting’s comments were tied to concerns raised by campaigners over impacts associated with mining activities.
Forest Tobelo isolation and consultation barriers
Activists, including the UK-based Indigenous rights organization Survival International, had campaigned against the Sonic Bay refinery. They said the refinery would extend operations connected to Weda Bay Nickel and could threaten ancestral lands used by the Forest Tobelo people. Survival International described the Forest Tobelo as numbering between 300 and 500.
The Forest Tobelo are described as maintaining a hunter-gatherer lifestyle connected to their forest environment, which they call O’Hongana Manyawa, meaning “the people of the forest.” Because of their isolation from the modern world, Survival International said they could not be feasibly consulted about projects affecting their lands. The group also said free, prior and informed consent (FPIC) could not be provided under international standards.
Survival International reported cases in which tribe members emerged from isolation after forests were lost to mining activities. The organization cited these accounts as evidence of potential effects on daily life tied to forest access. The report focused on how mining-related changes could disrupt the community’s way of life.
Environmental assessment rating for Weda Bay Nickel
The Weda Bay Nickel mine received a red grade in Indonesia’s annual environmental assessment system (PROPER) for 2022. The assessment result was described as indicating significant non-compliance with environmental and social regulations. The rating was cited in connection with concerns about environmental performance.
Even after BASF and Eramet’s exit, operations at Weda Bay Nickel were expected to continue. Survival International said Indonesia aims to strengthen its position as a global battery metals hub despite the companies’ withdrawal. The organization linked that trajectory to ongoing risks for the Forest Tobelo people and their ancestral forests.
No-go zone proposals and support from Tesla and Tamsil Linrung
Calls have been made for establishing a no-go zone around Indigenous territories to prevent further encroachment by mining and other activities. Survival International said such proposals align with efforts by stakeholders including Tesla. Tesla was described as not sourcing from Weda Bay at present while expressing interest in protecting uncontacted Indigenous groups in its operations.
Senior Indonesian politician Tamsil Linrung also voiced support for safeguarding the Forest Tobelo people through potential future policy measures. His remarks acknowledged the need to balance economic development with Indigenous rights and environmental stewardship. The statements were presented alongside ongoing concerns about mining expansion affecting isolated communities.