By BIBIAN BARRENG
OK Tedi Mining Ltd (OTML) is conducting a pre-feasibility study on an underground mining operation that would access ore deposits below Mt Fubilan copper-gold open pit mine in Western province.
OTML managing director Alan Breen said exploration at Mt Fubilan was continuing on lease in the pit and around the immediate mine vicinity.
Mr Breen was explaining the company’s overview at a mining seminar in Port Moresby yesterday.
“… although realistically, finding another Mt Fubilan appears remote,” Mr Breen said.
In line with feasibility study for the underground mine, Mr Breen noted: “It was more likely that deeper ore bodies may prove more interesting in the near term.”
Mr Breen was making reference to the future of OTML’s mining in Mt Fubilan with current reserves for the open cut mine to be exhausted by 2013.
He said there were other alternatives for an extension of mine to be considered and assessed yet major operation decisions, consultation with government and communities were essential elements for any such strategic decision.
OTML was required by the National Government to submit a final mine closure plan four years away for the closure that would begin 2009 and had since submitted a draft plan for Government review last December.
With six years left to wind down operations at mine site, OTML had begun disposing of redundant materials and working closely with stakeholders to properly prepare for an orderly mine closure in the absence of alternative mining options.
Environmental issues at Ok Tedi were a major challenge that the company was looking into, particularly those involving sulphur and acid rock damage (ARD).
OTML had put a proposal to the Government and communities to build a pyrite removal floatation process to reduce sulphur in the tailings.
Under the proposal, the company would store pyrite concentrate safely in pits and the low sulphur tailings would be recovered by dredging to be used as sand stockpile cover to limit oxidation of dumps at Bige.