Britain has signed a memorandum of understanding with Indonesia to collaborate on critical minerals, according to a statement from the UK’s embassy in Jakarta. The agreement aims to foster policy dialogue, enhance technical knowledge sharing, and address areas such as supply chain resilience, sustainable processing, and mineral criticality. However, the statement did not provide specific details about the terms of the agreement.
The partnership positions Indonesia and Britain as major players in the critical minerals supply chain, according to Britain’s development minister, following the deal signed with Indonesia’s energy minister. Indonesia, known for its abundant reserves of tin, copper, and bauxite and as the world’s largest source of nickel ore, is aiming to increase the value derived from these resources. The country is seeking to attract investment to boost its mineral processing and enhance the production of electric vehicle batteries, aligning with the global demand for sustainable energy solutions.
The announcement follows a recent outreach by the United States to Indonesia regarding participation in a multinational partnership focused on accelerating the development of sustainable critical mineral supply chains. Indonesia has significantly boosted its nickel processing sector since implementing a ban on unprocessed ore exports in 2020. However, this rapid expansion has drawn criticism from environmentalists, who attribute deforestation, as well as water and air pollution, to the activities of smelters in the region.
Before signing the memorandum of understanding, Britain’s development minister told Reuters that the deal with Indonesia aimed to foster local job creation and safeguard the environment, particularly by addressing the environmental impacts of mining. The minister emphasized the significance of the partnership, calling it “incredibly important” for both nations’ long-term objectives.
(Source: Reuters)
