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K1b benefit package for Ok Tedi
villagers
OTML windfall four times
better than the previous one
By FRANK ASAELI
PEOPLE living
downstream of the Ok Tedi Mining Ltd will receive a benefit
package of over K1 billion and four times better that the
previous one.
The total benefits package, including those to be provided by
the other key stakeholders (PNG Sustainable Development Program
and the PNG Government), was estimated at K1.01 billion (US$342
million) over the seven years to 2013.
Negotiations were successfully concluded during the second
quarter results ending June 30, 2007 with the communities
downstream of the mine concerning the new benefits they would
receive from the company.
OTML reported in the second quarter results that export
shipments of copper and gold concentrates were 5% higher for the
second quarter of this year than the same period last year.
However, copper and gold production for the quarter was 23% and
24% lower respectively compared to that of the corresponding
quarter for 2006.
Production for the first half of the year was 17% lower for
copper and 16% lower for gold compared to the same period for
2006 because production was impacted by a combination of lower
ore grades and throughput.
Results showed that there were no navigability constraints in
the Fly River system as rainfall was high for the first half of
the year.
Work has also commenced on the process plant building for the
mine waste and tailings project to extract pyrite from mill
tailings and pipe to the storage area near the lower Ok Tedi.
Half of the line pipe has been received on site and dredging of
the access channel to the storage site is about 50% complete
with designing reaching 70%.
This has resulted in commitments of US$88.3 million (K267.58
million) or 57% of the current forecast total cost of US$153.6
million (K465.45 million) and the targeted completion date
remains as the 2nd quarter of 2008.
A total of 66 people have been recruited by the project team as
personnel and contractor personnel in the mobilisation and site
set up for the construction of the process plant and the
pipeline.
 
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