Social Licence
Ok Tedi Mining is committed to conducting its operations in a socially responsible manner, respecting cultural heritage and traditional rights.
There are 158 villages in the Western Province where community life has been directly influenced by the presence of the mine.
The mine communities are grouped into nine regions and represent over 147,000 people.
Our social license to operate is based directly on the Free, Prior and Informed Consent provided by these communities, as well as the provincial and national governments.
Local communities, the Western Province and wider Papua New Guinea obtain enduring benefits from the presence of the Ok Tedi mine in the form of employment, local business engagement, dividends, taxes and royalties paid, goods and services purchased, tax credit scheme (TCS) projects funded, training provided, and through capacity building and economic and social development programs.
Community Mine Continuation Agreement
Ok Tedi’s Mt Fubilan mine and its supporting operations continue with the consent of mining-affected communities, formalised through legislation known as the Community Mine Continuation Agreement (CMCA).
The CMCA legislation and its subsequent updates provide an integrated compensation and development package to mining communities for their economic and social benefit.
Ok Tedi sees the requirements within the CMCA as not just a legal, but a moral obligation, and we strive to go above and beyond in our relationship with local communities.
The CMCA Working Group is the major consultation group for the various compensation-related projects, comprising 36 people: four community members, including at least one woman, from each of the nine mine regions.
The working group meetings are also attended by government representatives, church representatives, women & youth organisations and NGOs, as well as Ok Tedi team members to ensure transparency and alignment for all works.
Compensation Payments
The funding provided by the CMCA is seen as a lever for change, leading to a self-sustaining future for communities long after Ok Tedi mining operations cease.
The agreement provides specific funding to mine associated villages in the nine CMCA Regions on an annual basis. The funding includes payments for:
- the various leases involving the mine and its infrastructure
- general compensation to mine-impacted communities
- donations
- mine landowner projects
- environmental and other general compensation
A minimum of 10% of the legislated compensation package has been allocated specifically to fund projects for Women and Children.
Regional Women’s Associations have been set up to manage the use of these specific funds.
Our Community Relations Team
Through our many years of successful operation, we have developed a detailed Community Relations Engagement Program that includes comprehensive two-way communication with all affected stakeholders.
Our team of over 20 dedicated Community Relations professionals are dedicated to ensuring we maintain a positive, mutually beneficial relationship with our local communities.
Ok Tedi’s Community Relations team is responsible for the planning, implementation and communication of all mine-related activities relevant to our local communities, including information about environmental impact mitigation strategies, compensation payments, local employment and benefit sharing opportunities, infrastructure development and available services.
Each year, our Community Relations team undertakes a series of community visits to each of the 158 villages in the nine CMCA regions, conducting consultation meetings at each.
Meetings are held with the whole village, and also with women separately to discuss issues specific to women and children.
They provide an opportunity to follow up on issues previously raised, give updates on the operational activities of the mine and any related matters, and also collect vital community census data.
The community is also able to use these meetings to raise any issues of concern. Any requests or grievances are recorded through our specially designed Complaint and Grievance Management System app for follow-up and resolution.
Information on this process is reported in our Annual Review each year to ensure transparency and accountability.
The meetings are an essential avenue of consultation for stakeholders who may not have consistent access to internet or even phone technology for communication.
Our Community Relations Team is able to meet with people face to face and communicate in language that communities are most comfortable with, whether that is English or Tok Pisin.
Formal meetings are also held with local, ward, provincial and national government authorities.
Through continuous consultation and FPIC-guided stakeholder engagement, Ok Tedi continues to enjoy a healthy supportive working relationship with our local communities.
