China metals giant faces protest in Indonesia after fatal blast

WORKERS at a Tsingshan Holding Group plant in Indonesia staged a demonstration and demanded new working conditions after an explosion on Sunday (Dec 24) that killed at least 19 people.

The deadly blast at a furnace run by Indonesia Tsingshan Stainless Steel – which is controlled by the Chinese group – has triggered a police investigation and a halt to the firm’s operations. Tsingshan is the world’s biggest nickel producer and one of Indonesia’s largest foreign investors.

On Wednesday, about 100 workers gathered at Indonesia Morowali Industrial Park – the site of the blast – to call for better compensation to victims’ families, according to the park’s spokesperson Dedy Kurniawan. Protestors have since dispersed, he said.

Unions also issued a list of more than 20 demands to the industrial park and Tsingshan’s management. Those include a requirement that foreign staff should learn Indonesian, as well as calls for improved pay and health benefits, and better emergency preparedness. The list, seen by Bloomberg News, was issued by five labor organisations including the Confederation of All Indonesian Trade Unions. 

The fatal accident at the Tsingshan furnace is the most serious in a number of incidents in Indonesia’s burgeoning nickel industry, which is the world’s biggest after a decade of massive investment spearheaded by Chinese firms.

Tsingshan has 3 million tonnes of stainless-steel capacity at the Morowali site, which is made using nickel smelted from Indonesian ore. It’s not clear how much steel or nickel capacity was being utilised prior to Sunday’s halt. Tsingshan has separate facilities in other parts of Indonesia.

A NEWSLETTER FOR YOU

Friday, 8.30 am

Asean Business

Business insights centering on South-east Asia's fast-growing economies.

Sign Up

Nickel on the London Metal Exchange rose Wednesday, its first day of trading since Dec 22. The metal gained 2.4 per cent to US$16,905 a tonne.

There have been tense relations between local communities and Chinese workers and management at nickel plants. In January of this year, two people died in violent clashes at a plant belonging to another Chinese company.

The death toll from Sunday’s explosion climbed to 19 on Wednesday after one worker succumbed to heavy injuries, according to the Central Sulawesi regional police. Forty more remain in intensive care.

The fatalities included eight Chinese nationals, Mao Ning, a spokesperson for China’s Ministry of Foreign Affairs said at a regular press briefing on Wednesday in Beijing. China will work with Indonesia to deal with this accident, she said.

Indonesia’s Ministry of Manpower is investigating the cause of the disaster and will take legal steps against the company if it’s found to have violated work, health or safety regulations, state news agency Antara reported. BLOOMBERG