Jakarta, CNBC Indonesia - The transformation towards electrification\nin the mining and nickel industries is becoming increasingly evident.\nThis is because the use of electric vehicles (EVs) can reduce the amount\nof carbon dioxide (CO2) emissions produced in that sector.<\/p>\n
Executive Director of the Indonesian Coal Mining Association (APBI)\nGita Mahyarani stated that the electrification trend has been actively\npursued over the past 2-3 years. The urgency to optimise electrification\nin the mining sector is growing amid the trend of rising global oil\nprices.<\/p>\n
\u201cBut, when we talk about coal mining, especially for companies, their\nresilience varies. If we talk about electrification again, the\ninvestment or capex is quite substantial. This year, we are facing\nconsiderable pressure in coal production, which has been significantly\ncut, so this also presents a challenge for us in the coal industry,\u201d\nGita said during the EV Transition In Mining Industry Outlook 2026 \u201cThe\nFuture Of EV\u2019s In Mining Industry: Between Efficiency and High\nInvestment\u201d event on Wednesday (29\/4\/2026).<\/p>\n
Gita explained that there are already a dozen APBI member mining\ncompanies that have adopted EVs. Most other members are still in the\ntrial phase of utilising such vehicles. Nevertheless, APBI views the\npotential for EV implementation in the mining industry as very promising\nin the future.<\/p>\n
However, the substantial investment required by companies and the\ncertainty of electricity grid infrastructure remain the main challenges\nin EV adoption in the mining sector. In fact, adequate electricity\nnetworks are key to supporting the operation of electrification-based\nequipment in mining areas.<\/p>\n
\u201cBut again, according to us, the very large capex is currently a\nchallenge for the coal industry. But EVs are something promising because\nwe will also see it from the ESG perspective, where if EV use can be\nimplemented from upstream to downstream, there will certainly be a\nreduction in emissions from scope 1, which will shift to scope 2,\u201d she\nclarified.<\/p>\n
If regulations on EV use are enforced, EV prices are expected to\nbecome more affordable for each mining company. As a result, EV adoption\nin that sector will accelerate and expand.<\/p>\n
In the same opportunity, the Supervisory Board of the Indonesian\nNickel Miners Association, Djoko Widajatno, agreed that the transition\nto electrification in the nickel industry still faces several\nchallenges. Indonesia indeed controls around 65% of the world\u2019s nickel\nreserves. However, pressure from the global market regarding\nEnvironmental, Social, and Governance (ESG) standards demands that\nIndonesia meet those rules while improving efforts to reduce\nemissions.<\/p>\n
\u201cWell, one of the components is certainly reducing CO2 emissions. How\nto do it? Yes, we try to implement electric vehicles, electric equipment\nand so on. But as mentioned earlier, this is capital intensive.\nMeanwhile, the number of nickel miners is only 418, from large ones\ncovering 45,000 hectares to those covering 800 hectares,\u201d he said.<\/p>\n
Djoko explained that large companies such as PT Vale Indonesia Tbk\n(INCO) and PT Aneka Tambang Tbk (Antam) are likely already implementing\nelectric heavy equipment up to heavy dump trucks. In contrast,\nsmaller-scale companies still rely on conventional vehicles, not yet\nhybrid.<\/p>\n
\u201cThe challenge, of course, if we look at it now, nickel is under\npressure. Pressured by fuel issues, then pressured by ESG regulations\nand so on. From the miners\u2019 perspective, it\u2019s quite difficult to\nincorporate electric vehicles into their mines,\u201d he stated.<\/p>\n
In line with Gita, Djoko also acknowledged that the investment costs\nfor electrification in the mining sector are very high, in other words,\n2-3 times more expensive than current equipment. On the other hand, the\nnational nickel industry is still considered a dirty industry by\noutsiders, so its prices are still pressed as low as possible by the\nmarket.<\/p>\n
\u201cBut hopefully, we can overcome this by implementing electrification\nprogrammes in mining equipment and we can dominate the global market\nbecause we can utilise ESG. Thus, if the country becomes a superpower,\nthe traders are happy, and the people are prosperous,\u201d he\nemphasised.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/exploring-the-potential-for-ev-development-in-the-mining-and-nickel-industry-1777460489", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }