Community Mine Continuation Agreements
The OTML project continues with the consent of the affected communities, and for their ultimate economic benefit, through an integrated compensation and development package. This is both a moral and a legal obligation that OTML must meet, as enforced by legislation passed by the National Government of Papua New Guinea in November 2001.
The aim of all parties is to determine what amount of funds and what level of development is necessary to compensate for predicted environmental impacts, expected to be experienced in the Fly and Ok Tedi River systems for several centuries.
The Community Mine Continuation Agreements are achieved through a negotiation process between 
the landowner representatives from nine Fly River/Ok Tedi regions, the PNG National Government, and OTML. The Fly River Provincial Government and relevant local level governments are also involved during the process of reaching agreements.
The original agreement established in 2001 introduced more stringent environmental monitoring by OTML, set up an independent development foundation (the Ok Tedi Development Foundation), and resulted in the Mining (Ok Tedi Mine Continuation (Ninth Supplemental) Agreement) Act. This established a program for continuous review of the compensation and development package.
The most recent round of CMCA negotiations concluded in June 2007, to introduce a revised package reflecting worsening environmental impact assessments which exceeded the damage predicted in the 2001 legislation.
Background to the CMCAs
The national government of PNG passed legislation in November 2001 establishing the basis under which the Ok Tedi mine would continue. Among its several components, this legislation brought into law the consent given by the communities affected by the mine for it to remain operating. To address the need for securing agreement and negotiating an integrated development package with the communities, which reflects the predicted mine impacts, OTML adopted the Community Mine Continuation Agreement process.
Principal parties to the agreements are landowner representatives from nine Fly River/Ok Tedi regions, the PNG National Government and OTML. The Fly River Provincial Government and relevant local level governments are also involved during the process of reaching agreement. The process is observed by independent non-government organizations, the Individual and Community Rights Advocacy Forum (ICRAF) and the PNG Council of Churches.
OTML also provides landowners with negotiation and conflict resolution training, and facilitators and independent observers are present throughout the negotiations. The process is supported by three elements:
- a development foundation to contribute to sustainable development in the Western Province into the future;
- a new environmental monitoring and reporting regime to better understand the implications of the mine operations; and
- legislation (the Mining (Ok Tedi Mine Continuation (Ninth Supplemental) Agreement) Act).
The CMCAs provide for a review of the performance of the agreement after five years. If greater environmental impacts occur than were predicted when the CMCAs were negotiated, these are discussed as part of the review. A round of consultation about the mine's impacts began in July 1999, when OTML received the results of the Human Health and Ecological Risk Assessment (HERA).
These reports told OTML that the impact of the mine would be greater than previously expected. The HERA was part of the Mine Waste Management Project, which examined in detail four options for dealing with the environmental impacts of the mine. One of those options was to shut down the mine. In February 2000, the PNG Government wrote to the mine-affected communities telling them that they would be asked, through a government-led consultation process, if the Ok Tedi mine should continue. Six geographic regions were established, later amended to nine, as the basis of consultation and negotiation. They are:
- Mine Lease Area
- Highway villages
- North Ok Tedi
- Lower Ok Tedi
- Middle Fly
- Suki Fly Gogo
- Manawete
- Kiwaba
- Dudi
Each of these communities was consulted through a number of meetings in each village, and each village selected representatives to represent them in on-going negotiations. OTML negotiated through the Community Mine Continuation Agreement process a mix of benefits for landowners affected by the
mine. The negotiation process involved asking landowners to suggest initiatives for sustained development beyond the life of the mine. The mix of benefits acknowledges that the communities will need to provide for their families well beyond the mine's economic life, and that replacement economic support must be started now.
OTML visited the 152 affected communities and worked with them to develop regional development plans. These provide a framework for the development projects the communities identify. The plans were made in consultation with government officers and local village planning committees. OTML continues to work with communities to deliver on these integrated development packages. Projects the villagers have asked to be funded include materials for village housing, sewing machines, outboard motors and portable sawmills.