OK Tedi set for challenges

 OK Tedi Mining Limited (OTML) says it is in good shape to meet the expected challenges this year and beyond.

The state-owned mining company said this after it resumed operations at the Ok Tedi mine in Western on Tuesday, following a seven-month stoppage. 

The mine suspended operations on August 22 last year due to the drought conditions which made ships carrying critical supplies impassable up the Fly River coupled with the depressed copper price. A spokesperson told The National that costs were tightly managed during the temporary shutdown period with a number of large important projects completed, “which otherwise would have resulted in lost production for several months in 2017”. The spokesperson said copper price currently was around US$2.10 (K6.24)/lb. 

“Reputable industry analysts forecast the price averaging US$2.20 (K6.53)-US$2.30 (K6.83/lb in 2016,” the spokesperson said. “OTML benefits from gold as a by-product and gold price typically benefits during periods of financial volatility. It is in good shape to meet the expected challenges in 2016 and beyond.”