Operation dependent on water level, ships movement: Executive

Business

By SHIRLEY MAULUDU
OK TEDI Mining Ltd’s (OTML) return to normal operation is dependent on two vessels that departed Port Moresby yesterday for Kiunga, according to chief executive and managing director Peter Graham.
Graham said rainfall had been patchy over the past week but had allowed for vessels to travel in and out of Kiunga. “Rainfall in past week has been patchy,” he told The National yesterday.
“The situation changes day to day as to whether ships can get in and out.
“We have two vessels that departed Port Moresby today (yesterday) for the river mouth with combined 6.4 million litres of diesel,” he said.
“If they can get through to Kiunga by the end of this week, Ok Tedi will be in a stronger position to return to more normal operations.
“We also have empty feeder vessels returning from Port Moresby to be loaded with concentrate that we hope can then get out from Kiunga to Port Moresby.
“We are hopeful that forecasts of rain later this week will eventuate.”
Graham said last week that the low water level in the Fly River last month had not allowed the regular passage of Ok Tedi’s feeder vessels loaded with concentrate out of Kiunga and back from Port Moresby with fuel and food.
Graham said four vessels were recently cleared but one loaded vessel remained stuck in the shallows.
“As a consequence, Ok Tedi has limited stocks of fuel, diesel, explosives and other vital materials and concentrate storage in Kiunga is approaching capacity,” he said.
“To extend available stocks of vital materials, mine production has been reduced by 50 per cent and some contract personnel have been released.
“In the past week some fuel and food has been received lifting stocks to 20-30 days at current reduced consumption rates.
“For the community, food stocks are adequate through the supermarkets and an allocation of diesel made available for rationing.”