August 18, 2023
To: Major investors holding shares in Vale / PT Vale Indonesia

Re: Call for Prompt and Appropriate Action to Urge Vale to Take Measures toProtect the Basic Human Rights of Local Communities Surrounding Sorowako
Nickel Project
We are civil society organizations that address the environmental, social, and human rights
issues with the local communities affected by PT Vale Indonesia’s (PTVI) Sorowako Nickel
Project in East Luwu, South Sulawesi, Indonesia (the Project). Today we are sending this callfor engagement to you as one of the major investors in Vale, a parent company of PTVI, or as
one of the major investors in PTVI, so that you can prevent yourself from being complicit inhuman rights violations in the Project, as described below.
For more than 50 years since the nickel development by PT International Nickel Indonesia (PTINCO) started in Sorowako, local community, including indigenous people, farmers, fisherfolk,women, have faced a wide range of problems in the development site of its vast concession
area (70,566 hectares). In recent years, as the demand for battery materials has increased aspart of efforts to achieve a decarbonized society, the pressure for development in Sorowako,
ranging from plans to build a new smelter1 to exploration and expansion of the mine, hasrather increased, and the concerns and problems faced by the local community also continue
to grow.
Firstly, farmland, an important means of livelihood for the residents of the area surrounding
the Sorowaco mine, has been deprived with each expansion of the nickel mine. Within theconcession area, farmers were forced to leave when the PTVI mining area was extended tofarmland. Even when compensation was paid, some farmers reported that it was neverenough considering the labor, fertilizers, and other necessary expenses they had invested incultivating their farmland. In the first place, monetary compensation is not a sustainablemeasure, since it ends when it is used up. There are also reports of cases where the level andconditions of compensation are not consistent, including cases where there is nocompensation at all, leading to the division of communities.
Because of the overlap between the PTVI concession area and the farmland, there have been
threats and harassment of farmers by police and security guards to evict them from the PTVI
land. Farmers continue to cultivate their land in fear that the land they have worked so hardto cultivate might be deprived of them at any moment.
With respect to the Tanamalia block, where PTVI is currently conducting exploration activities,
exploration is proceeding without proper community consultation, and farmers are calling for1

https://www.vale.com/documents/44618/1438416/PT+Vale+and+Huayou+Show+Sustainability+Commitment+by+Building+a+new+HPAL+Plant+for+Limonite+Nickel+Ore+in+Luwu+Timur.pdf/3f0a54cf-12f6-845e-94e23950d845d998?version=1.0&t=1668006561928

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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, andthose engaged in pepper-related economic activities, the expansion of the mine at theTanamalia block is a serious concern that threatens their lives. It is the desperate hope of thefarmers that these farmlands be excluded from the PTVI concession area so that they cancontinue to farm.
Secondly, Environmental pollution around the Sorowako mine has also threatened the livesof the local community. In February 2023, community members in Asuli village, Towuti district,raised a protest demanding prompt action by PTVI when spring water nearby that thecommunity used as a water source not only turned brown and muddy when it rains, but thewater source itself dried up during dry season. The community testified that such water
problems had never occurred before the mining operation started nearby. On top of that,hexavalent chromium exceeding the drinking water quality standards by the guidelines fordrinking-water quality by World Health Organization (WHO) (0.05 mg/L) 2 , and the water
quality standards for drinking water by the Indonesian government (0.05 mg/L)3 was found intheiris water source, when FoE Japan and WALHI South Sulawesi conducted water testing in
October 2022. To date, PTVI has failed to provide clean and safe water to the community after
more than five months since the community’s complaint.

PTVI’s mining operation expanded into the Results of simple Cr(VI) detector tube test on
area right above the community water the community water in Asuli village (0.05source and their residential houses in Asuli mg/L) (Photo: October 23, 2022)
village. (Photo: July 2022)2

https://www.who.int/teams/environment-climate-change-and-health/water-sanitation-and-health/watersafety-and-quality/drinking-water-quality-guidelines
3
https://jdih.setkab.go.id/PUUdoc/176367/Lampiran_VI_Salinan_PP_Nomor_22_Tahun_2021.pdf

2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 fordomestic use due to no other water source.
(Photo: January 10, 2023)

In the above-mentioned Tanamalia 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 the flora and faunathat live there, is a major concern.
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 the projectsite caused by hexavalent chromium, a highly toxic heavy metal that is a known carcinogenand also causes liver and skin damages, it is important to take a prompt and proactive
measure in order to prevent any health damage to the local community in the long-term.
Finally, it is crucial not to overlook the fact that the "freedom of expression" of the localcommunities, who have been raising their voices to PTVI to improve its measures in order toprotect their lives, has been suppressed.
In March 2022, seven residents were unjustly arrested and detained, causing financial andmental hardships for them and their families, when they protested, calling on PTVI to respect
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 theabove-mentioned community in Asuli village made protest actions, the community had tostop their protest due to the intervention or intimidation by local authorities, such as police
and intelligence who summoned a community leader and told him to stop their protest.
Likewise, in June and July 2023, the farmers, who were urging PTVI to stop its exploration in
the Tanamalia block, confirmed the presence of military and heavily armed police officers
there. This clearly shows that PTVI prefers using repressive methods and ignores any process
to obtain consent from the community with proper consultations. 45 Following thissuppressive situation at the local level, the Indonesian Military Regional Command even4

https://www.journaltelegraf.com/2023/06/tuntutan-petani-dan-perempuan-merica.html
https://www.indeksmedia.id/2023/07/26/petani-dan-perempuan-ketakutan-walhi-sulsel-desak-pt-valeindonesia-hentikan-militerisasi-di-blok-tanamalia-luwu-timur/
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visited and interrogated the WALHI South Sulawesi office in Makassar, who has been assisting
the farmers.
This serious violation of the "freedom of expression" of residents, including indigenouspeoples, should not be tolerated. As the investor of the Vale-invested 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 toensure that PTVI takes the following actions;
1. To exclude the entire Tanamalia block from the concession, as the area is consist of
the farmland, where the local communities depend for their livelihood, and rainforest
ecosystem / landscape as endemic Sulawesi fauna and flora;
2. To exclude farmland, where local communities depend on for their livelihoods, andadequate buffer zones from the area to be mined (including the Tanamalia blockcurrently under exploration);
3. 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 to prevent
recurrence of problems related to water access;4. To stop nickel mining activities in essential ecosystem areas, such as forests and riverareas, especially upstream, and in community water sources area, in order to prevent
toxic pollution in the future;
5. To restore the environment in river areas and community water sources areas;
6. To respect the local community’s human rights to health and living, including accessto clean and safe water;
7. To respect the freedom of expression of the community affected by its nickel projects.
For local communities affected by the Sorowako Nickel project to be able to continue farming,
to maintain a healthy life, and to freely express opposition and concern - all of these are basic
human rights. We look forward to your company's sincere response according to the UN
Guiding Principles on Business and Human Rights.

LIST OF SIGNATORIESThis letter is signed by 104 organizations, including those working at international andregional levels plus organizations working nationally in 23 countries.
INITIAL SIGNATORIESWALHI South Sulawesi
Wahana Lingkungan Hidup Indonesia (WALHI / FoE Indonesia)
Friends of the Earth Japan
Pacific Asia Resource Center, Japan4

Indonesia
AEER ( Action for Ecology and People Emancipation)
Balai Latihan dan Pengembangan Masyarakat
Barisan Pemuda Adat Nusantara
CommonDebt for Climate Indonesia
Eksekutif Daerah WALHI Aceh
Environmental Law Forum
Extinction Rebellion Makassar
Green Youth Movement
Inisiasi Masyarakat Adat (IMA)
Institute for National and Democracy Studies (INDIES)JALA PRTJangkar BumiKRuHA
LBH MATARAM
Lembaga Kajian Pengembangan Masyarakat dan Pesantren (LKPMP)
Nexus3 Foundation
PROGRESS
ResponsiBank Indonesia
Satya Bumi
Senik Centre Asia
Trend Asia
WALHI BENGKULUWALHI Central Kalimantan
WALHI Jambi
WALHI Jawa Tengah
WALHI Jawa Timur (East Java)WALHI Lampung
Walhi Maluku Utara
WALHI Riau
WALHI SOUTH KALIMANTAN
Walhi Sulawesi Tengah
WALHI Sumatera Utara
WALHI West JavaWALHI Yogyakarta
Xr
Yayasan Bumi Mandiri
Yayasan Lembaga Bantuan Hukum Indonesia (YLBHI / Indonesia Legal Aid Foundation
Yayasan Peduli Lingkungan - Sulawesi Selatan
Yayasan Pemerhati Masalah Perempuan Sulawesi Selatan
Yayasan Pusaka Bentala Rakyat
International and regional organizations
Accountability Counsel
Asia Pacific Network of Environment Defenders
Asia-Pacific Gathering on Human Rights and Extractives (AP Gathering)
5Civil Society Women Organization
CNS
Eco Circular India Foundation
Empower India
Fair Finance International
Friends of the Earth International
IPMSDL
Just Finance International
London Mining Network
Marian Women Producers Cooperative/Ang Aroroy Ay Alagaan, Inc.-Philippines
NGO Forum on ADB
Pmpi
Ponlok Khmer
Stand.earth
UNLAD
Urgewald
Argentina
Tierra Nativa / Amigos de la Tierra Argentina
Australia
AidWatchBangladeshChildren's Goal
CanadaFriends of the Earth Canada
Costa Rica
COECOCEIBA - FoE Costa Rica
FinlandFriends of the Earth Finland
FranceJusticeMakers Bangladesh in France(JMBF)Les Amis de la Terre France / Friends of the Earth France
India
Project Affected People's Association
Socialist Party (India)
Vikas Adhyayan Kendra
Japan
Japan Tropical Forest Action Network (JATAN)
Mekong Watch
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MaltaFriends of the Earth Malta
Mongolia
Centre for Human Rights and Development
Nepal
National Forum for Advocacy Nepal (NAFAN)
Netherlands
BOTHENDS
ProfundoNorway
Nordic Centre for Sustainable Finance (Part of ActionAid Denmark)Pakistan
SUKAAR WELFARE ORGANIZATIONPhilippines
Aksyon sa Kahandaan sa Kalamidad at Klima AKKMA
Alyansa Tigil Mina (ATM)CCMCL Baywatch Foundation
Center for Environmental Concerns (CEC)
Convergence of Initiatives for Enviroental Justice (CIEJ)
Cordillera Peoples Alliance
Environmental Legal Assistance Center (ELAC)
Jalaur River for the Peoples Movement (JRPM)
Kalikasan People's Network for the Environment
Legal Rights and Natural Resources Center -Friends of the Earth Philippines
SAM
Task Force Detainees of the Philippines
Unyon ng mga Manggagawa sa Agrikultura (UMA)
Sri LankaCentre for Environmental Justice/ FoE Sri Lanka
SwedenJordens Vanner / Friends of the Earth Sweden
Thailand
Ecological Alert and Recovery - Thailand (EARTH)
Retired Social Science and Politics AcademicTogo
Les Amis de la Terre-Togo
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United States of America
Friends of the Earth United States
VietnamCenter for Sustainable community development
Attachment: Statement by Loeha-Mahalona Pepper Farmers' Association: "Pernyataan Sikap
Mayarakat (Petani dan Perempuan) Loeha Raya Menolak Aktivitas Eksplorasi dan
Perluasan Tambang PT Vale Indonesia di Blok Tanamalia, Kecamatan Towuti,
Kabupaten Luwu Timur” (July 24, 2023)
Contact:
WALHI South Sulawesi (Muhammad Al Amin, Executive Director)
Add: JL. Aroepala, Kompleks Permata Hijau Lestari Blok Q1, No.8, Rappocini, Kota Makassar,
Sulawesi Selatan 90221
Email: muhammad.al.amien@gmail.com / walhisulsel@gmail.com
Tel: +62-8229-3939-591
Friends of the Earth Japan (Hozue Hatae, Development Finance and Environment Team)
Add: 1-21-9 Komone, Itabashi-ku, Tokyo, Japan 173-0037
Email: hatae@foejapan.org
Tel: +81 3 6909 5983

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