| Introduction |
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OTML is planning for an orderly closure of the current mine in 2013. However, the OTML management is in the progress of undertaking a feasibility study to extend mine life as an alternative to closure. OTML management considers this to be a genuine opportunity to extend mine life by another 7 years from 2014 to 2020 by a combination of underground mining and an open pit mine.
Ok Tedi's current pit with proposed new developments. Paris, Gold Coast and Berlin will add another K3 billion to PNG State revenue. The mine life extension will produce an estimated 90 million tonnes of ore containing close to 700,000 tonnes of copper and 2.3 million ounces of gold over the seven year period. The mine will be a lot smaller in size to the current operations. Ok Tedi’s current annual copper and gold production is 160,000 tonnes and 540,000 ounces gold respectively.
Stakeholders Consent Any decision to extend the closure of Ok Tedi to 2020 requires the approval of the State and the informed consent of the communities that are impacted by the existence of the mine. This message has been clearly disseminated to local communities from the Community Mine Continuation Agreement (CMCA) regions, State Authorities as well as the political leaders of the province. OTML’s workforce and other stakeholders are also being kept informed of developments relating to possible extension of Ok Tedi’s mine life.
The Impact The most significant impact will be the requirement for disposal of an estimated 280 Mt of waste rock and tailing from open cut mining and mill processing. The Feasibility Study, due for completion at the end of 2010, will identify the best disposal solution for the waste material. Environmental studies will be conducted as part of the Feasibility Study to establish the extent and materiality of the environmental impacts.
The Benefits Mine extension will generate K3 billion in State revenues (dividends, taxes, royalties). Other benefits include extended lease payments, a level of ongoing compensation and tax credit infrastructure and maintenance of social services for the people of North Fly and the rest of Western Province. Additional dividends will also flow to PNG Sustainable Development Program Limited, the trust company which was gifted with former Ok Tedi operator BHP's 52% equity in the mine in 2001 for the purpose of establishing sustainable programs in Western Province and PNG. |
