Operations » Mine Closure Planning

Mine Closure Planning

The mine buildings will be removed, and the pit revegetated, under the terms of the Mine Closure Plan 

Ok Tedi mine closure has significant social and economic implications for the regions surrounding the mine and the people who live there, whether or not they have been employees of the mine or their dependents.  Under the current open-cut mining plan, mining operations at Ok Tedi are expected to cease around mid- to late-2013 when accessible ore is exhausted.  OTML is examining a range of options in order to continue as a company after the current open-cut mine of the ore body runs out, including underground mining for less accessible mineral deposits on Mt Fubilan.

Under the terms of its mining lease, OTML was required to present a draft Mine Closure Plan to the PNG Government 10 years before the planned closure date.  A draft Rehabilitation and Closure Plan was forwarded to the government in June 2000.  This plan described the technical and operational aspects of closing the mine and rehabilitating the mine environment. OTML also submitted a Social and Sustainable Issues in Relation to Mine Closure document that attempted to encapsulate the human issues facing mine closure and OTML's response to those issues.

The Ok Tedi Mine Closure and Decommissioning Code ('Code') was enacted by the government of Papua New Guinea in December 2001 under the Mining (Ok Tedi Mine Continuation (Ninth Supplemental) Agreement) Act.  The code requested the submission of a draft Mine Closure Plan within twelve months of the Ninth Supplemental Agreement commencing.  In December 2002, OTML submitted to the State an updated draft Mine Closure Plan, and this was approved by the Ministers for Mining and Environment and Conservation.  The Code also requires an updated draft Mine Closure Plan to be submitted every two years, with a detailed Mine Closure Plan to be submitted no later than four years prior to mine closure.  OTML has complied with these requirements by submitting updated Mine Closure Plans in 2004 and 2006.  The State has agreed that the next plan to be submitted will be the detailed Mine Closure Plan in 2013. 

The OTML Mine Closure Plan consists of four parts:

  1. an Introduction: discussing the areas affected by mining, the impacted communities and stakeholders, and the consultation that has occurred in compiling the mine closure plan;
  2. the Decommissioning and Infrastructure Plan: which, while addressing the requirements under Schedule I of the Code, discusses OTML's proposals for dismantling infrastructure and decommissioning various sites, and the costs associated with these activities:
  3. the Mine  Area Rehabilitation Plan: which, while addressing the requirements under Schedule II of the Code, discusses the objectives and measures of the various rehabilitation phases, monitoring requirements and the costs associated with these activities:
  4. a Social and Economic Report: comprising the required Schedule I accompanying report which discusses the social and economic impacts of mine closure and the status of economic programs being undertaken relevant to those impacts.

OTML recognises that an important aspect of the mine closure planning process is to ensure there is good stakeholder involvement and consultation.  In October 2005, OTML held a two-day mine closure planning workshop with community and government stakeholders to refine the current mine closure proposals.  The workshop focussed particularly on infrastructure planning and socio-economic development.

Another workshop was held in February/March 2007 to provide an update on the mine closure plan to the community leaders, working groups and other stakeholders and to develop action plans to address activities identified in the 2006 updated draft Mine Closure Plan.  A more recent workshop in early 2008 focused on getting stakeholder feedback on the 2006 draft Mine Closure Plan.  At this workshop the participants also engaged in a review of key issues and gaps as well as clarification of the closure planning strategy to ensure effective engagement of the key stakeholders in the closure planning process. 

For more information about mine closure planning, please consult the reports section of the website.