Ok Tedi Mining

The Western Province, unofficially known as Fly River Province, is both the largest in Papua New Guinea and the least populated. The Fly River system, the largest in the country, flows from the north to the south-east of the province. Western Province's 98,048 square kilometres makes up one-fifth of the landmass of Papua New Guinea, and its mountainous regions receive the highest average rainfall in the country. The Ok Tedi mine has a staggering ten to twelve metres of rain per year, while the township of Tabubil has around eight metres per year.

The Fly River and its tributaries are vital to the people of the province, providing transport and livelihood for many villages. The availability of arable land is quite limited, and this is reflected in the population density, less than two people per square kilometre. It is estimated that over 70 per cent of the Western Province's population of approximately 185,000 people live in rural areas.

The island of Daru is the capital of Western Province, and is located to the west of the mouth of the Fly River. The seat of the Fly River Provincial Government, as it is known, is located in Kiunga, a port town on the Fly River around 737 kilometres from the river mouth.

The region has poor soil for agriculture, but significant biodiversity, which is yielding fascinating discoveries for biologists, botanists, entomologists and ornithologists. Birds of paradise, tree kangaroos, rare fruit bats and an abundance of tropical orchids are just some of the features of the lush jungles of the Star Mountains in the north of the province. The province shares a border with West Papua, a province of Indonesia, and the indigenous people of the border region have traditionally moved freely around the area. The province is also bordered by the Sundaun (West Sepik), Southern Highlands and Gulf Provinces, and some people from these regions live near and work for the Ok Tedi Mine.

OTML has contributed greatly to the economy of the Western Province, which relies on the mine for a significant proportion of its income. In addition, rubber, forestry and fishing represent the industries providing the province with the most revenue after mining. A lot of the Western Province is considered to have potential for commercial forestry, as it is characterised by large expanses of undeveloped land, interspersed by a few small centres of economic development and urbanisation.

Oil-palm plantations are being developed in the southern part of the province, in order to provide income from bio-fuel production. Deforestation, either from the dieback associated with the mine, logging or clearing to make way for rubber or oil-palm plantations, is a significant risk to the ancient rainforests that cloak the province. This deforestation could also pose a threat to the ways of life of the traditional inhabitants of the region.

OTML, though the PNGSDPL, is committing substantial funds to ensure that the Western Province economy will not be adversely affected by mine closure. The mine’s stakeholders wish to ensure that the economic and infrastructure development which has occurred in the years since the mine began operations will continue.

Key Statistics of the Western Province

Population: approx. 185,000

Land area: 98,048 km²

Average rainfall per year: 1.5 metres (coastal) to 10-12 metres (central ranges)

% of population with annual income of K20 or less: 36

Annual population growth rate: 3.5%

% of population under 15 years of age: 45