P rof i l e : O k T e d i M i n i ng
‘A large portion of OTML’s dividend goes directly to its major shareholder, PNGSDP, and is therefore channelled into a wide range of community development projects.’
Western Province’s economic powerhouse The Ok Tedi copper/gold mine is PNG’s largest mine.
While the future of the massive Ok Tedi mine hangs in the balance, Ok Tedi Mining Limited looks set to continue its major contribution to Western Province.
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he massive Ok Tedi copper mine, which opened in 1984, is not only the largest contributor to the economy of Western Province but also to the entire economy of Papua New Guinea. It is one of the world’s largest copper mines. To give some idea of the mine’s importance to the country, in 2010 it accounted for 18% of Papua New Guinea’s gross domestic product, while a temporary closure of its slurry pipeline in 2011 deprived PNG’s various levels of government of almost 130 million kina (US$59 million) in tax revenue. Situated in the Star Mountains region in the north of Western Province, the mine is run by what is now a 100% Papua New Guinea-owned company, Ok Tedi Mining Limited (OTML). OTML itself has two owners: Papua New Guinea Sustainable Development Program Limited (PNGSDP, which owns 63.4%) and the State of Papua New Guinea (36.6%). One of OTML’s major preoccupations is the environmental impact of the mine, the waste and tailings deposition to the
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riverine system having had a major impact on the Ok Tedi and Fly Rivers and their associated eco-systems. Under an environmental regime put in place in 2001, as part of the mine continuation agreement, the company now employs teams of scientists to monitor and manage the impact of mining activity past and present.
Strong community role Operating the Ok Tedi mine makes OTML the most important company in Western Province. It employs a lot of people— some 2000 directly, and another 1500 indirectly through its partners. It also pays a lot of tax (K1.22 billion—US$553 million—in 2010), plus royalties and other payments to provincial government, landowners and other stakeholders inside the Western Province totalling K398 million—US$180 million—in 2010. Given the mine’s remote location, OTML’s activities inevitably extend beyond just the mining activity. The entire