The Ok Tedi mine is a major producer of copper concentrate for the world smelting market, situated at the headwaters of the Ok Tedi ("ok" means "river" in the local Faiwolmin language) in the remote Star Mountains of PNG's Western Province. The Ok Tedi mine is operated by Ok Tedi Mining Limited (OTML).
OTML's shareholders are PNG Sustainable Development Program Limited (PNGSDPL), (52 percent), the Canadian company Inmet Mining Ltd (18 per cent) and the PNG national Government (30 percent). The PNG Government holds equity directly (15 percent), and on behalf of the Western Province (12.5 percent) and landowners from the mine area (2.5 percent).
In January 2002, BHP Billiton Ltd divested its 52 percent shareholding in OTML by transfer of its shares to the PNGSDPL. The PNGSDPL's dividends from OTML are ultimately for the benefit of the people of the Western Province and Papua New Guinea generally, in the form of sustainable development projects.
The Ok Tedi mine started operations in 1984. It is the single largest business contributor to the economy of both the Western Province and PNG. In 2007, OTML's export sales were over K4.6 billion which represents approx 32 percent of PNG's total export earnings. The mine has made a significant contribution to the Western Province, not only economically, but also by providing community infrastructure (roads, airstrips, water and communications systems), education and training, employment and health services.
OTML's headquarters are in the town of Tabubil, while the mine site is located around 15 kilometres out of town on Mount Fubilan, which is 18 kilometres from the PNG/Indonesian border. OTML also operates milling facilities at the mine site and shipping facilities at the port of Kiunga on the Fly River, 800 kilometres upstream from the Gulf of Papua.
The primary markets for OTML's copper concentrate are predominately in Asia and Europe. It has contracts with copper producers in Japan, Korea, The Philippines and Germany.
OTML directly employs about 2,000 people. 95 percent of these people are PNG nationals and 36 percent are from the Western Province. In addition, businesses that work under contract to OTML employ more than 1,500 people. These businesses and their employees play a significant role in supplying goods and services to the mine.
Environmental monitoring and research of the Ok Tedi and Fly River systems has continued to be a significant focus at OTML in response to the well-documented impact of the mine on its environment. This focus will continue until the mine shuts down, which is expected in mid-2013.
As well as the significant wealth that the mine has generated for the Western Province and PNG generally, OTML - through its economic activity, employment and infrastructure development, in particular - has created significant dependencies. In preparing for mine closure, OTML is working with Western Province communities and governments to plan for life after the mine.