prof i l e : O k T e d i M i n i ng
District by the Ok Tedi Development Foundation to maintain Government infrastructure. Finally, OTML currently owns 75% of Ok Tedi Development Foundation Limited, established in 2001 to manage the trust funds set up for the 152 mine-affected villages along the Ok Tedi and Fly rivers under the Community Mine Continuation Agreements. The Foundation, which delivers the K680 million (US$308 million) Ok Tedi Fly River Development Program, was launched in 2008. The Foundation’s enabling legislation requires OTML to relinquish its Foundation shares before or at mine closure to four reputable development organisations.
The future of OTML The Ok Tedi mine, like all mines, will eventually run out of ore. In Ok Tedi’s case, that will happen sooner rather than later: it is scheduled to close at the end of 2015 unless significant mine extension works are given the go-ahead soon. This has been known for some time, and much of OTML’s focus now is on identifying additional ore deposits both within the Ok Tedi region and in other parts of Papua New Guinea. (See page 32 for more on OTML’s mine extension and exploration activity). Development of new deposits should ensure that OTML continues to have an important economic role in Western Province and Papua New Guinea beyond the Ok Tedi mine closure, whenever that occurs.
Ok Tedi in numbers
Environmental monitoring is one of OTML’s key preoccupations
support infrastructure for the mine had to be created and is now maintained by the company. This includes the company town of Tabubil adjacent to the mine (which has its own airport and hospital); the 157 km road and parallel slurry pipelines which connect Tabubil to Kiunga on the Fly River, from where the copper concentrate is barged down to the sea some 800 river kilometres away; power plants; and the river port at Kiunga. It also funds a K20 million per annum training and development scheme for apprentices and university graduates.
Pit size Open date Due closure date Annual production Export revenues Profit before tax (2011 forecast) Taxes paid Employees
2.6 sq km 1984 2015 or 2024 159,821 tonnes of contained copper 486,000 oz of contained gold 1.47 million oz of contained silver 4.74 billion kina (US$2.15 billion) 1.01 billion kina (US$457 million) 1.22 billion kina (US$553 million) 2000 directly (plus 1500 indirectly)
NB 2010 figures quoted unless otherwise stated.
Community benefits A large portion of OTML’s dividend goes directly to its major shareholder, PNGSDP, for community development projects in Western Province and PNG more generally (see the profile of PNGSDP on page 11). In addition, OTML’s Tax Credit Scheme, worth K91 million (US$41 million) in 2010, funds the building and maintenance of vital community infrastructure across Western Province and the Telefomin District in the Sandaun Province, such as schools, government housing, sewerage systems, hospitals, airstrips and police stations. Health and education are a particular focus of the scheme. Under the Restated Eighth Supplemental Agreement, 20% of the Special Support Grant is also required to be spent in the Tabubil
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