Perspectives and Links
A lot has been said about the Ok Tedi mine. Its importance to the PNG economy and development in Western Province combined with its undeniable environmental impacts has resulted in a wide-ranging public debate. In this section, we endeavor to present some of the diverse public views about Ok Tedi and links to some of these key stakeholders.
Having visited our web site, we encourage you to provide your own feedback via the contact us section of the site.
Shareholders and interested parties
The PNG Sustainable Development Program Ltd
The PNGSDP is the majority shareholder in OTML, and is responsible for the management of the funds derived from BHP Billiton's divested share. It allocates one-third of its post-tax dividend to current sustainability projects in the Western Province and PNG, with the remaining two-thirds in a long-term management plan for investment after mine closure. Three of the six Directors of the PNGSDP are appointed by BHP Billiton, which is its only involvement in the mine at Ok Tedi.
Wanbelistap
URL: http://www.wanbelistap.com/
Wanbelistap is an independent forum for disseminating communication materials used in OK Tedi Mine's CMCA Review process.
The Government of Papua New Guinea
URL: http://www.pm.gov.pg
The Government of Papua New Guinea is a 30 per cent shareholder in the mine, as well as regulator.
“It is clear that the environmental damage caused by the Ok Tedi mine is greater than expected when the mine opened and that it is now a serious problem affecting many people along the Fly River system.”
“However, it is essential to bear in mind that any hasty and poorly planned decision to close the mine could have had even worse consequences for the well-being of these people and for Papua New Guineans generally.”
The Prime Minister, Sir Mekere Moratau on 26 September 2001, on announcing approval by the National Executive Council of a heads of agreement for the withdrawal of BHP Billiton from the mine.
Inmet Mining Corporation Ltd
URL: http://www.inmetmining.com
Inmet Mining Ltd, a Canadian mining company, is an 18 per cent shareholder in the mine.
“Ok Tedi has the potential to generate significant earnings and cash flow to Inmet over its remaining 10 year life.”
“Despite Ok Tedi's operational success, it did not contribute to Inmet's earnings or cash flow in 2000 as no dividends were paid…[it] remains a significant environmental challenge because of the competing social, economic and environmental values which need to be balanced in relation to the ongoing operation of the mine.”
Inmet Mining Ltd corporate web site.
BHP Billiton
URL: http://www.bhpbilliton.com
Up until December 2001, BHP Billiton was a 52 per cent shareholder in Ok Tedi. Its shares are now held by the Sustainable Development Program Company.
“Ok Tedi is a complex issue for BHP, with competing environmental impacts and social and economic benefits. We have indicated to the other shareholders that we thought the best approach to this dilemma was to close the mine early. However, the PNG Government does not want the mine to close earlier than ten years from now which would be its economic life. We understand the reasons for its position.”
“As a result we have come to the view that it would not be appropriate for BHP to have any direct involvement with the mine beyond the point at which all parties can agree on how best we exit.”
BHP Chairman, Don Argus, at the 2000 BHP Annual General Meeting
Other Sites and Opinions
The Keystone Center
Independent facilitators of the CMCA negotiations which concluded in 2007.
"The Ok Tedi story is a sustainable development quandary: vast environmental damage weighed against significant economic gains."
The Keystone Center's report on the 2007 CMCA Review can be found here.
The World Bank
The World Bank is a significant financial supporter for PNG. It reviewed the results of Ok Tedi's Mine Waste Management Project at the request of the PNG Government.
“The data in the Risk Assessment indicates that from an environmental standpoint, the best option is to close the mine immediately. But the Risk Assessment also states that from a social standpoint this would result in a potentially disastrous situation because there is no preparedness for mine closure. But, the Risk Assessment does not adequately address the trade-offs between environmental and social costs nor does it provide any information or details on the mine closure plan or broader mine closure strategy. This is a critical shortcoming of the Risk Assessment since it is not possible to assess the appropriateness of the social and environmental mitigation measures that are being considered in the mine closure plan and whether international best practice is being followed. In this regard, any decision on mine closure can only be made once a mine closure plan and mine closure strategy are agreed.”
World Bank report to the PNG Government
World Wide Fund for Nature
The World Wide Fund for Nature visited Ok Tedi in 2000 at OTML's invitation. A report on their visit can be downloaded from the reports page.
“The obvious action of ceasing mining is not likely to be acceptable to the PNG Government, as well, this would lead to serious local social problems that in themselves could produce even more dramatic environmental effects. Ok Tedi is the major business in the province – closure would precipitate a move to exploit any other available natural resources, with timber as the only obvious contender. Such a situation would lead to massive deforestation and subsequent establishment of commercial crops such as palm oil plantations. Neither of these actions if conducted under current PNG practices are likely to result in improved human capital or financial advancement of local people.”
BHP & OK TEDI: The Twist in the Tailings
Report to BHP on WWF's inspection of the Ok Tedi mine,
10-11 February 2000
Community Aid Abroad (Oxfam)
Community Aid Abroad/Oxfam is an international community-based organisation. It is active in monitoring and reporting on the activities of mining companies in developing countries and has set up its own office of the Mining Ombudsman.
“A number of cases of multinational corporations infringing the basic rights of communities have been highlighted in recent months. These include the devastating cyanide spill earlier this year at the Australian owned Esmerelda mine in Romania for which the Perth based company admitted no liability. Closer to home is BHP's admission that its Ok Tedi mine will impact the Ok Tedi river system - and the 50,000 villagers dependent upon it - far more than previously thought. BHP now admits that none of the possible solutions it has investigated are feasible and has signaled its intention to sell its stake in the mine.”
Polliewatch no. 43, November 2000
National Environmental Watch Group
National Environmental Watch Group is a PNG-based environmental NGO that has been active in discussions about the future of Ok Tedi.
“Mine closure would be a no-win situation. Ten, fifteen years ago, yes, but the scenario has changed so much that to close the mine would be doing everyone a disservice. So we've now got to look at the best, most transparent ways of ensuring people's future livelihood is taken care of. These communities cannot leave: that's their area, their culture, their livelihood. BHP has paid reasonable lump sums, but it has not had a lasting impact. NEWG wants to see long-term measures to rehabilitate the ecology and the social and economic dislocations, so that people can go back to the way they were.”
Wep Kanawi, NEWG, in CAA/Oxfam magazine Horizons,
April 2000
Mineral Policy Institute
The Mineral Policy Institute has been one of OTML's most staunch critics.
“This spontaneous blockade by women and children demonstrates the anger in PNG at BHP's morally bankrupt plan to avoid responsibility for the environmental disaster they have created. These people are standing in the way of BHP's desparate [sic] flight from the scene of their environmental crime.”
MPI media release, 26 November 2001
In 2005 the MPI reported on a summit held by the Western Province Alliance for a Sustainable Future held in Kiunga, in which calls for a review of the CMCA process and the 9th Supplemental Agreement were made, including a proposed referendum to determine the future of the mine.
More details can be found at http://www.mpi.org.au/campaigns/waste/kiunga_summit/
Rettet die Elbe
URL: http://www.rettet-die-elbe.de/oktedi
Rettet die Elbe (Save the Elbe) is a German NGO campaigning over pollution of the Elbe River. It has been critical of Norddeutsche Affinerie, a leading European copper smelter, for purchasing copper concentrate from the Ok Tedi mine. In November 2000, representatives of Rettet die Elbe, Norddeutsche Affinerie and a number of other NGOs visited the mine.
“International pressure forced BHP, an Australian mining company, the main shareholder and operator of Ok-Tedi mine, to fund compensation measures for the environmental, social, and economical disadvantages of mining. This BHP-Fund , however, is linked to the operation of the mine. Therefore, the closure of the mine will leave people with bare hands, and so will be disastrous to the local economy. People cannot return to their way of life, before the opening of the mine in 1984. Alternative means and structures to make a living have to be implemented.
All those, that benefited from Ok-Tedi mine, and tossed people into the present mess, are responsible to contribute to a future solution.”
Rettet die Elbe web site
Western Province landowners
Some 60,000 people live along the Ok Tedi and Fly River systems in the Western Province. Viewpoints about Ok Tedi vary among Western Province landowners affected by the mine, and many have made their views known in the Australian and PNG press.
In relation to landowners' negotiations with OTML:
“We have negotiated with OTML the kind of benefits and for how long these integrated benefits will be forthcoming.
“…the agreement we have reached for our people is fair and in the best interest of our people, Western Province and PNG as a whole.
“We have now set the basis for our people's future and we intend to get there without the help of outside law firms, whose interests are to rip off the benefits from our people and leave us with nothing.
“We have nothing to do with the court action in Melbourne.”
Lewis Siware, landholder representative, Samari Village
The Independent, 24 January 2002
In relation to environmental damage:
“We want our river back. It's a big environmental problem. They [BHP] go up to the media and say all sorts of things (they say) we are doing the right thing, but this is not correct.”
Rex Dagi, Western Province landowner