Shutdown will hurt
The National, Tuesday July 28th, 2015
THE temporary shutdown of operations announced by Ok Tedi Mining Ltd will affect it, the Ok Tedi Development Foundation says.
OTML yesterday announced a “temporary shutdown” of its operations.
In a statement, the State-owned open-pit copper, gold and silver mining company said the shutdown would be temporary and the
company would continue operations while critical supplies allowed.
The company said the situation resulted from the dry weather that was already significantly impacting it operations.
“River traffic on the Fly River into and out Ok Tedi’s main river port at Kiunga has been unreliable for some weeks due to low water levels,” it said.
“Diesel stocks for power generation and mining operations cannot be sustained, and replenishment of food stocks is affected.
“Transport of copper concentrate product to Port Moresby for on-shipment has been unreliable, creating uncertainty with regard to cash inflows necessary to sustain operation.
“Further the low river flow impacts operation of the Ok Menga power station, which is the main source of power for Tabubil and the OTML operations.
“As a result power rationing has commenced in Tabubil and Kiunga,” OTML said. When contacted yesterday, foundation media and communications officer Domininc Krau confirmed certain operational restrictions had been put in place for the foundation.
“Yes this affects OTDF in that certain operational restrictions have been put in place by chief executive officer Ian Middleton,” it said.
“Of note are restrictions on light vehicle usage and fuel/petrol usage and that all consultants and contractors engaged by OTDF are to leave the site.
“As for reduction of employee numbers at OTDF, there will be a reduction, however this will be planned in accordance with an organisation restructure.
“Further restrictions will depend on the weather, commodity prices and OTML management decisions however, we will continue to maintain contact with our CMCA community partners.”
The foundation manages community development benefits from Ok Tedi mine operations on behalf of the 100,000 river residents living in 156 villages throughout Western.