Ok Tedi Mining

The PNG Sustainable Development Program Ltd (PNGSDP), also known as the Program Company, was established in 2002, when BHP Billiton divested its 52 percent shareholding in OTML following concernsabout the long-term environmental impact of the mine, and the social and economic repercussions of this impact.

The Singapore-based company is independent of OTML and the PNG Government, and its purpose is to fund short- and long-term sustainable development projects in PNG, enabling a direct return of the funds to the people of PNG and the Western Province. It has clearly defined operating rules, including criteria for selecting programs and projects, for consultation and for public reporting.

BHP Billiton’s exit agreement allocates two-thirds of the receipts of its dividends to a Long Term Fund for use after mine closure. The Program Company manages this money, set aside in low-risk investments, and must allocate the money to sustainable development projects in PNG. The funding decisions are made by the Program Company’s directors. Three of these directors are appointed by BHP Billiton.

One-third of the dividends goes to supporting current sustainability projects in the Western Province and throughout PNG. A major project is the construction of a deep-water port at Daru, off the coast of the Western Province. This port would benefit businesses such as oil-palm plantations, forestry and nascent manufacturing industries, as well as providing jobs in the construction phase of the port’s life.

Other minor projects being undertaken in the Western Province include provision of microfinance to assist with smaller-scale savings and loans through the PNG Microfinance company, the provision of solar lighting to regions without electricity, the development of rubber plantations and aquaculture projects such as barramundi hatcheries.

Future projects being considered include eco-tourism, thermal electricity generation, forestry and infrastructure such as roads and pipelines for natural gas.

Further information can be found at the Papua New Guinea Sustainable Development Program Limited website.