Ok Tedi Mining

The mine at Ok Tedi has brought great wealth and development to the Western Province, and mine closure will see significant falls in province income. OTML is committed to maintaining social, economic and infrastructure development by investing dividends from mine profits in the future of the province. Sustainability at Ok Tedi is measured by factors such as regional economic stability, infrastructure and access, skills base and jobs, social cohesion and a healthy and educated population. OTML's key sustainability objectives are to:

• provide a sustainable economic base
• maintain infrastructure
• develop alternative employment and income-generating opportunities
• provide effective governance for the future and strengthen institutional capacity
  
• mitigate environmental impacts
• ensure a skilled labour force
• ensure continued access to health and education services
• achieve gender equity in all programs
• ensure a secure food supply, and
• coordinate development and mine closure planning.

For OTML, sustainable development:

• recognises the relationship between current and future generations
• requires an institutional framework for governance so that facilities and programs stay viable, and
• assumes ongoing socio-economic and environmental improvements after mine closure.

OTML's sustainable development program for the Western Province and PNG has been guided by a series of workshops and forums to explore the issues and develop shared understanding and commitment to a coherent program.

Sustainability has been addressed in Community Mine Closure Agreement reviews as well. Part of the outcomes of the Community Mine Closure Agreements has been to establish community development organisations in the form of the Ok Tedi Development Fund and the Ok Tedi Fly River Development Fund. These bodies are responsible for the management of the funds allocated to sustainable development in the mine affected areas, and the allocation of funds to sustainable community projects.

The mine has generated very substantial wealth for the Western Province. Since production commenced, the Western Province has received aound two billion kina from the project. OTML is legally bound to make some of these payments, such as royalties and compensation payments to local communities, and government dividend payments. Other payments in the area of community development support are freely made by the mine in the interests of the future of Western Province communities.

Despite the size of the payments made, the actual and perceived community development and benefits in the Western Province does not appear to be in proportion to their magnitude. The challenge going forward is to maximise the sustainable benefits to the people from the billions of kina in revenue that the province will receive up to mine closure.

Participants in building the sustainable development program have included: OTML staff; OTML shareholder representatives; community and village groups; local contractors and organizations; local, provincial and national government representatives; senior public utility officers; other mining companies, and PNG and international NGOs and church groups.