June 12, 2023
Mr. Akira Nozaki
President and Representative Director
Sumitomo Metal Mining Co., Ltd.

Re: Call for Prompt and Appropriate Action to Urge PT Vale Indonesia
to Take Measures to Protect the Basic Human Rights of Local
Communities Surrounding Sorowako Nickel Project
Since we pointed out to your company the environmental pollution by PT Vale Indonesia(PTVI) around Mori Island, off the coast of Malili district, East Luwu, South Sulawesi, in20211, we have asked your company to take appropriate action on several significant
environmental, social and human rights issues related to Sorowako Nickel Project, bothas an investor (15.03% stake in PTVI) and from the perspective of the supply chain(import of nickel in matte produced at the existing processing facility in Sorowako undera special long-term contract).
For more than 50 years since the nickel development by PT International Nickel
Indonesia (PT INCO) started in Sorowako, local community, including indigenous people,farmers, fisherfolk, women, have faced a wide range of problems in the development siteof its vast concession area (70,566 hectares) . In recent years, as the demand for batterymaterials has increased as part of efforts to achieve a decarbonized society, the pressure
for development in Sorowako, ranging from plans to build a new smelter2 to explorationand expansion of the mine, has rather increased, and the concerns and problems faced by
the local community also continue to grow.
First, farmland, an important means of livelihood for the residents of the areasurrounding the Sorowaco mine, has been deprived with each expansion of the nickel
1 https://sulsel.suara.com/read/2021/08/24/170705/walhi-sulsel-desak-pt-vale-hentikan-sementara-

produksi-nikel
2

https://www.vale.com/documents/44618/1438416/PT+Vale+and+Huayou+Show+Sustainability+Com
mitment+by+Building+a+new+HPAL+Plant+for+Limonite+Nickel+Ore+in+Luwu+Timur.pdf/3f0a54cf12f6-845e-94e2-3950d845d998?version=1.0&t=1668006561928

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mine. Within the concession area, farmers were forced to leave when the PTVI mining
area was extended to farmland. Even when compensation was paid, some farmers
reported that it was never enough considering the labor, fertilizers, and other necessary
expenses they had invested in cultivating their farmland. In the first place, monetarycompensation is not a sustainable measure, since it ends when it is used up. There arealso reports of cases where the level and conditions of compensation are not consistent,including cases where there is no compensation at all, leading to the division ofcommunities.
Because of the overlap between the PTVI concession area and the farmland, there havebeen threats and harassment of farmers by police and security guards to evict them fromthe PTVI land. Farmers continue to cultivate their land in fear that the land they haveworked so hard to cultivate might be deprived of them at any moment.
With respect to the Tanamalia concession, where PTVI is currently conducting
exploration activities, exploration is proceeding without proper community consultation,and farmers are calling for the exploration to be halted. In the Sorowako area, pepper
cultivation has brought enormous benefits to the community over the past 20 years. For
pepper farmers, including women, and those engaged in pepper-related economic
activities, the expansion of the mine at the Tanamalia block is a serious concern thatthreatens their lives. It is the desperate hope of the farmers that these farmlands beexcluded from the PTVI concession area so that they can continue to farm.
Environmental pollution around the Sorowako mine has also threatened the lives of thelocal community. In February 2023, community members in Asuli village, Towuti district,raised a protest demanding prompt action by PTVI when a nearby spring water that thecommunity used as a water source not only turned brown and muddy, but the water
source itself dried up on some days. On top of that, hexavalent chromium exceeding thedrinking water quality standards by the Japanese government (0.02 mg/L) 3 , theguidelines for drinking-water quality by World Health Organization (WHO) (0.05 mg/L)4,and the water quality standards for drinking water by the Indonesian government (0.05mg/L) 5 was found in this water source, when FoE Japan and WALHI South Sulawesi
conducted water testing in October 2022.

3

https://www.mhlw.go.jp/stf/seisakunitsuite/bunya/topics/bukyoku/kenkou/suido/kijun/kijunchi.html#01
4 https://www.who.int/teams/environment-climate-change-and-health/water-sanitation-andhealth/water-safety-and-quality/drinking-water-quality-guidelines
5 https://jdih.setkab.go.id/PUUdoc/176367/Lampiran_VI_Salinan_PP_Nomor_22_Tahun_2021.pdf

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PTVI’s mining operation expanded into Results of simple Cr(VI) detector tube test
the area right above the community water on the community water in Asuli village
source and their residential houses in (0.05 mg/L) (Photo: October 23, 2022)
Asuli village. (Photo: July 2022)

One of the community water sources (usedby 20 families) affected by PTVI’s mining
operation in Asuli village. (Photo: January
10, 2023)

The families in Asuli village are saving thecontaminated spring water little by little
for domestic use due to no other water
source. (Photo: January 10, 2023)

In the above-mentioned Tanamaria Block, where exploration activities are ongoing,
according to pepper farmers in the area, there are at least tens of springs, and the impact
not only on the community but also on the ecosystem of the rainforest area, including theflora and fauna that live there, is a major concern.
Your company has recently established the "Sumitomo Metal Mining Group’s Water
Policy"6. As you recognize, "water is an essential shared resource for local communities
and the surrounding ecosystem" and "Access to water is critical to the communities".
Although the policy is supposed to apply only to "the entirety of SMM’s business (SMM
and its subsidiaries)," it is very unfortunate and ironic that serious human rights
violations related to "access to water" are occurring at your company's investee andsupplier.
The access to clean and safe water is one of the basic human rights of the local community,including women and children. With regard to environmental pollution around the6 https://www.smm.co.jp/en/sustainability/management/water_policy/

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project site caused by hexavalent chromium, a highly toxic heavy metal that is a known
carcinogen and also causes liver and skin damages, it is important to prevent any healthdamage to the local community. “Double standards" under the loose monitoring andregulation of local government agencies should not be tolerated, and your company isrequired to take a proactive approach to ensure that your suppliers comply with the same
standards as those in Japan.
Furthermore, it is crucial not to overlook the fact that the "freedom of expression" of thelocal communities, who have been raising their voices to PTVI to improve its measures inorder to protect their lives, has been suppressed.
In March 2022, seven residents were unjustly arrested and detained, causing financial
and mental hardships for them and their families when they protested, calling on PTVI torespect the rights of indigenous peoples, ensure access to clean water, respect the rights
to farmland, and secure employment opportunities for the youth population. In February
2023 when the above-mentioned community in Asuli village made protest actions, thecommunity had to stop their protest due to the intervention or intimidation by localauthorities, such as police and intelligence who summoned a community leader and told
him to stop their protest.
This serious violation of the "freedom of expression" of residents, including indigenouspeoples, should not be tolerated. As the investor and procurer of the nickel development
project in Sorowako, your company is required to take appropriate measures to avoid
complicity in such human rights violations.
In light of the above, we request that your company take prompt and appropriate action
to ensure that PTVI, your investee and supplier, takes the following actions;
1. To exclude farmland, where local communities depend on for their livelihoods,
and adequate buffer zones from the area to be mined (including the Tanamalia
block currently under exploration);
2. To take immediate and appropriate remedial measures to ensure clean and safe
water access for the local communities. Also, develop and make public a plan toprevent recurrence of problems related to water access;3. To stop nickel mining activities in essential ecosystem areas, such as forests andriver areas, especially upstream, and in community water sources area, in orderto prevent toxic pollution in the future;
4. To restore the environment in river areas and community water sources areas;
5. To respect the local community’s human rights to health and living, including
access to clean and safe water;
6. To respect the freedom of expression of the community affected by its nickel
projects.
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The ability of local communities affected by the Sorowako Nickel project to continue
farming, to make a healthy living, and to freely express their objection and concerns these are all basic human rights. Your company has stated its support for the UN Guiding
Principles on Business and Human Rights, and you have your own policy on humanrights7. We look forward to your company's understanding and sincere response.

WALHI South Sulawesi
WALHI
Friends of the Earth Japan
Pacific Asia Resource Center

Attachment:- Joint Statement by WALHI South Sulawesi and Loeha-Mahalona Pepper Farmers'
Association: "Call for the Stop of Exploration and Expansion of Vale Indonesia's
Nickel Mining in Tanamalia Block (Lumereo Mountain) to Protect the Lives ofPepper Farmers and the Habitat of Flora and Fauna in Sulawesi". (BahasaIndonesia)

Contact:
Friends of the Earth Japan
Add: 1-21-9 Komone, Itabashi-ku, Tokyo, Japan 173-0037
Tel: +81 3 6909 5983
Email: hatae@foejapan.org

7 https://www.smm.co.jp/en/sustainability/management/humanrights_procurement/5