K600mil eyed for Ok Tedi project


ABOUT US$200 million (K600 million) will be spent on the relocation of the in-pit crusher by Ok Tedi to enable greater access to mineral ore.
Ok Tedi chief executive Peter Graham said the relocation would “release value” in the company’s productivity and was expected to double returns on investment cost.
“During the first 10 months of this year, we made an after-tax profit of just under US$200 million with cash generation to match,” Graham said.
“This in turn enables the relocation of the in-pit crusher which will enable us to gain access to additional ore.
“This was a high value opportunity that was identified in our 2016 strategic planning cycle and expected to generate a return of double our investment.
“There is significant value opportunity associated with the crusher relocation.
“In 2017, the project was approved by the OTML board.
“By relocating the in-pit crusher in the mine opposite the workshop, considerable value is released by accessing a higher-grade ore under that infrastructure.
“I guess it is always the case when you build infrastructure on top of a high-value resource.”
The new mine workshop and office will be completed in the first quarter of 2018 and the new crusher is expected to be operational in the first quarter of 2020, Graham said.
He also said Ok Tedi would prioritise its understanding of slope stability and water drainage in the mine pit as part of the company’s operational changes in 2018.