OTML unveils closure plan

Business, Main Stories


OK Tedi Mining Ltd submitted its detailed mine closure plan to the State through the Mineral Resources Authority (MRA) in Port Moresby yesterday.
The plan was required under section 4.3(b) of the Mine Closure and Decommissioning Code 2001for OTML to submit to the Department of Mining and Department of Environment and Conservation (DEC), four years prior to the cessation of commercial production.
OTML managing director Alan Breen, when presenting the plan to the State and other stakeholders, said: “Under the current plan, the mine ceases operations in 2013 and so the plan is due.”
 “It has been in waiting for 18 months and this is a milestone achievement to hand it over to the State to peruse and approve by June 2010 in accordance with the code,” he said.
“The 2009 plan supersedes and also differs from the three previous plans that were submitted in 2002, 2004 and 2006 as it presents consolidated plans for all operational areas.”
It is made up of four volumes containing detailed activities and cost information regarding decommissioning and rehabilitation plans estimated at US$227 million (K615.18 million) for the Financial Assurance Fund (FAF) which increased from US$120 million (K325.20 million) from the 2006 plan.
The 2009 estimate also includes a specific provision of US$39 million (K105 million) to support up to 30 years of riverine and social monitoring.