Ok Tedi Mining

Ok Tedi Mining Limited (OTML) operates the mine which is located in the Star Mountains region of the Western Province.

The mine started operations in 1984, and has become the single largest business contributor to the economies of the Western Province and PNG.

The Ok Tedi mine is a major producer of copper concentrate for the world smelting market in Germany, India, Japan, Korea and the Philipines. The mine exports copper as the main product but it also extracts gold and silver.

In 2010, OTML's export earnings were PGK 4.741 billion, which represented 18 per cent of the country's Gross Domestic Product. The contributions of the mine to Western Province are more than just in monetary terms. OTML also contributes socially to Papua New Guinea's development through infrastructure projects such as health centres, school classrooms, houses, roads, airstrips, jetties, water supply and communications systems.

The company also provides education and health services and business development programs and contributes to the development of women and young people. Training programs designed to increase life skills in the local populace are provided by the mine through the Ok Tedi Development Foundation which was established under the Ok Tedi 9th Supplemental Agreement Act to implement and deliver mine derived social and economic benefits to the impacted communities from the Star Mountains down the Ok Tedi and Fly River systems.

In January 2002, BHP Billiton Ltd divested its 52 per cent shareholding in OTML by transfer of its shares to the Papua New Guinea Sustainable Development Program Limited (PNGSDPL). The OTML dividends paid to PNGSDPL are being used to generate sustainable development projects for the benefit of the people of the Western Province and Papua New Guinea.

In February 2011, OTML became a company owned fully by Papua New Guinea interests. This followed the exit of Toronto (Canada) listed company, Inmet Mining Corporation as a shareholder. Inmet Mining's 18 per cent share, which it held since 2002, was bought by OTML for USD335 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.

The greatest challenge facing OTML is mitigating the impact of the mine on the environment. Environmental monitoring and research into the mine's impact on the Ok Tedi and Fly River system continues to be the main activity of OTML's Environment Department which comprises a team of experienced national and international environmental scientists and laboratories. Environmental management includes the Bige dredging and rehabilitation program, Bige Pyrite Storage Pits, Tailings Processing Plant performance, trans-shipping monitoring, die-back and recovery monitoring, ecology monitoring, industrial waste monitoring and community health assessments.

OTML's Environmental Management System, based upon the Company's Environmental Standards, aims to, among other things, define consistent environmental management requirements to support the implementation of the OTML Charter, the Environmental Regime and the Environmental Policy.

OTML's head office is in the township of Tabubil, 45 minutes drive from the mine pit at Mt Fubilan. OTML also operates its milling facilities at Folomian and shipping facilities at the port of Kiunga on the Fly River, located 750 kilometres upstream from the Gulf of Papua.

OTML directly employs about 2,000 people, 95 per cent of whom are PNG nationals with 36 per cent from the Western

Province. In addition, business partners that work under contract to OTML employ approximately 1,500 people.

OTML recognises the need to continuously equip its staff with the right skills to perform their jobs effectively and has invested heavily in training and development.

Ok Tedi's operation is also significantly driven by its focus on safety with ‘Zero Harm' as its goal. There are numerous safety procedures and processes in place to help the organisation and its business partners achieve the operation's safety goal and objectives.