OTML production drops

OK Tedi Mining Ltd has reported that its copper production last year fell by 22% to 130,456 tonnes, while gold output fell 13% to 417,429 ounces.
This was a result of lower ore grades and the shutting down of its mill on two occasions.
The company said it was forced to have a 10-day shutdown in January last year to investigate a death incident at the mill.
It was followed by a 28-day shutdown from May 29 to June 24 when the pyrite concentrate pipeline to handle high sulphur wastes was ruptured.
Shipments of copper and gold were 10% lower compared to 2010 due to the production shortfall and the Japanese earthquakes which resulted in Japanese customers declaring force majeure on contracted sales.
Shipments were down 12% in the final December quarter.
Ok Tedi made no comment on the planned closure of the mine next year  or in 2014 although a feasibility study had been underway for some considerable time into simultaneous open cut and underground mine to keep production going at least till 2020.
Industry sources indicated that the national government had failed to carry out necessary negotiations with the management on the possibility of extending Ok Tedi’s mine life thus jeopardising the opportunity to keep operations going.
In recent years, taxes paid by Ok Tedi had been the main contributor to government budget surpluses.