ONE of Australia's richest men, Clive Palmer, is buying nickel laterite ore for his Yabulu refinery from an Indonesian company that is defying a ban and mining in Raja Ampat, the world's most ecologically diverse marine environment.

An investigation by the Herald has discovered that as well as threatening the environment that is home to 75 per cent of the world's coral species, the supplier undercompensates landowners, has allegedly paid bribes for its licences and created deep rifts in the traditional communities of Raja Ampat.

Tropical delight ... children enjoy the beauty of the reef in front of their village on Raja Ampat.

Conservationists and activists have fought hard to have Raja Ampat, in West Papua province, protected but the mine on the island of Manuran where Queensland Nickel gets its nickel, PT Anugerah Surya Pratama, remains open.

And its sister company continues to work at another disputed concession on the island of Kawe, despite a court order to desist.