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Key Historical Dates

1963 

  • Government patrol makes first contact with the Min people of the Star Mountains. A government patrol leaders notices signs of copper mineralisation near the present mine site and collects samples for analysis.

1968

  • Mt Fubilan copper-gold deposit discovered. drill-sites-on-mt-fubilan.jpg

1969

  • Geologists from the Kennecott Copper Corporation issue a prospecting authority over the area. Within a year, the company confirms that a deposit exists at Mt Fubilan.

1969 - 1971

  • Diamond-drilling program to establish ore reserves is carried out. Results are favourable. Kennecott and the PNG Government, however, cannot reach an agreement about how to develop a mining project.

1975

  • Kennecott withdraws from the project.

1976

  • Australian company, the Broken Hill Proprietary Company Limited (BHP), enters into negotiations with the PNG Government. In the same year, the government passes the Mining (Ok Tedi Agreement) Act and an international consortium is formed to assess the feasibility of developing a gold and copper mining operation.

1979

  • A ten-volume feasibility study is prepared and presented to the PNG Government.

1980

  • February - the National Government approves the consortium's proposals for the project and exercises its option to take up a 20 per cent shareholding.
  • June - Ming (Ok Tedi Supplemental Agreement) Act passed.

1981

  • 27 February - Ok Tedi Mining Limited (OTML) incorporated to develop and operate the project.
  • Mining lease is granted to OTML.
  • April - construction begins and proves to be a major engineering feat, given the remote location of the site and the unstable terrain.
  • The development program takes almost eight years and costs US$1.4 billion.

1984

  • Massive landslides destroy the foundations of the Ok Ma tailings dam during construction. Mine tailings can no longer be stored.
  • Gold production begins, with an interim tailings system.

1987

  • Copper production begins.
  • Sixth Supplemental Agreement environmental studies begin looking at the effects of the sediment on waters and fish of the Fly River.mt-fubilan-1984.jpg

1989

  • Government sets maximum sediment level that the mine can place in the Fly River. OTML required to monitor sediment effects.

1991

  • First dividend paid.

1993

  • OTML ownership restructure announced. BHP's shareholding moves from 30 per cent to 60 per cent, State of Papua New Guinea 20 per cent, and Inmet Mining Corporation 20 per cent.

1994

  • Ten years of production.
  • Ok Tedi/Fly River landowners sue OTML and BHP in the Victorian Supreme Court for environmental damages.

1995

  • Restated Eighth Supplemental Agreement sets up general compensation scheme.
  • First company tax paid.

1996

  • First general compensation payments made.
  • Mine Waste Management Project (MWMP) establishes to investigate options for mitigating environmental impacts.
  • Heads of Agreement for special benefits signed between OTML, the State and the lower Ok Tedi communities.
  • Litigation settled out-of -court for K150 million in payments to landowners over the remaining life of the mine, and the commitment to the implementation of a feasibility tailings option which is approved by the State.

1997

  • Government approves dredging trial in the lower Ok Tedi area.
  • El Nino drought forces mill shut down in August. About 65 per cent of the staff go on dry weather leave.

1998

  • Operations resume in March.
  • The dredging trial begins following return of the rains and higher river levels.
  • State acquires additional ten per cent shareholding to be held for the benefits of the people of Western Province. Eight per cent is contributed by BHP and two per cent by Inmet. Payment by the State is to be effected from future dividends on the ten per cent acquired. State agrees to hold 2.5 per cent of its total equity (now 30 per cent) for the benefit of the mine area landowners and 12.5 per cent for the benefit of the people of the Western Province.

1999

  • Results of Mine Waste Management Project (MWMP) Risk Assessment published in August.
  • State directs continuation of dredging trial.

2000

  • State asks World Bank to review the findings of the MWMP.
  • Writs filed in the Victorian Supreme Court claiming damages and breach of contract on 1996 settlement agreement.
  • BHP indicates to shareholders it intends to exit the Ok Tedi mine.
  • PNG Government announces community consultation process over the future of the mine given its environmental impacts.

2001

  • Community consultation process moves to consent being given for the mine to continue, in the form of Community Mine Continuation Agreements (CMCAs) with landowners throughout those parts of the Western Province affected by the mining operations.
  • Mining (Ok Tedi Mine Continuation (Ninth Supplemental) Agreement) Act 2001 passed by the PNG Parliament, setting out the basis for mine continuation and BHP's withdrawal.
  • OTML's Environmental Regime adopted by the PNG State as part of the Ninth Supplemental Agreement.

2002

  • BHP completes its withdrawal from the business, with equity transferred to PNG Sustainable Development Program Ltd.
  • Constitutional references filed in the PNG courts opposing BHP Billiton's departure from the project and the constitutionality of the Ninth Supplemental Agreement.
  • The State approves the employment of a dredge, through to the end of mining, in the lower Ok Tedi region in conjunction with social and environmental monitoring programs.

2004

  • Twenty years of production
  • All claims, including the PNG constitutional references, are withdrawn by the plaintiffs in both Australia and PNG courts.

2005

  • OTML environmental monitoring detects chemical impacts from increasing copper in the river system.
  • OTML informs PNG Government and the affected communities of new environmental data, and begins to investigate options for mitigating predicted ARD from future sulphur in tailings.community-compensation.jpg

2006

  • OTML celebrates 25 years of the Ok Tedi project.
  • The State approves the Mine Waste Tailings Project, whereby sulphur content in tailings will be significantly reduced with the safe storage of the resultant pyrite concentrate at Bige.
  • OTML achieves record before-tax profit of K2.7 billion.

2007

  • CMCA review produces revised agreement between OTML and 145 villages, and extends mine life to 2013.
  • OTML achieves record before-tax profit of K2.9 billion.

2008

  • Mine Waste Management Program, including the Tailings Processing Plant and Tailings Pipeline, goes online.

2011

  • February - OTML becomes a company owned fully by Papua New Guinea interests. This followed the exit of Inmet Mining Corporation as a shareholder. Inmet Mining's 18 per cent share was bought by OTML for US$335 million and cancelled leaving OTML as a company owned today by PNGSDPL with 63.4 per cent and the State of PNG with 36.6 per cent.