US$245 mil reserved for Ok Tedi mine’s closure plan

Business

By SHIRLEY MAULUDU
THE OK Tedi Mining Ltd (OTML) has accrued US$245 million (about K843 million) in the Financial Assurance Fund (FAF) as part of the mine-closure plan, according to manager sustainability Ani Topurua.
She addressed the Ok Tedi stakeholders meeting in Port Moresby yesterday.
The meeting updated stakeholders on the existing memorandum of agreement, the mine closure plan and mine area rehabilitation plan.
The life of the mine is expected to end in 10 years.
“The code states that OTML must, as part of the mine closure plan, provide financial assurance in an amount sufficient for the performance of the mine-closure plan,” she said.
“The code also states that OTML must establish a reserve account satisfactory to the State in the joint names of the company and the State, to be known as the Ok Tedi Financial Assurance Fund to which money contributed by way of financial assurance must be credited. OTML current has accrued US$245 million in the FAF account.”
She said about 90 per cent of the FAF portfolio, was invested in US dollar “and partially protected against deflation or inflation impacts by Treasury inflation protected securities”.
Manager community relations Kuam Sanewai said the funding was for the mine-closure plan. Mine closure cost estimate by OTML is: 2009 (US$277.5mil/ about K979mil); 2016 (US$196.3mil/ about K 693mil); 2019 (US$204.3mil / about K721mil).
Department of Prime Minister and National Executive Council official Killian Anoser said there was a decrease in the figures because the Government had taken some money.

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