The Big Papua New Guinean

Ok Tedi dominates the nation’s mining sector.

Ok Tedi is Papua New Guinea’s biggest mine, and its performance has repercussions throughout the economy. Since starting operations in 1984—it is 50 years since the initial discovery of the resource—ok Tedi has produced 4.75 million tonnes of copper, 14.6 million ounces of gold and 31.4 million ounces of silver.

According to Chief Executive Officer Peter Graham, the total net revenues from copper, gold and silver concentrate is about K55 billion.

‘Over that time Ok Tedi has paid K9 billion kina in taxes, and K10.4 billion in benefits and compensation to the provincial government and impacted land owners,’ he says.

‘Since 1984, Ok Tedi has contributed on average almost 8 per cent of PNG’S annual Gross Domestic Product.’

Graham says the company has gone ‘back to the basics’ updating its operating models, developing new approaches to assessing the grade (value) of its deposits, optimising and revising the pit shape, and developing new ways of analysing strategic options.

‘We explored more than

4500 different scenarios and analysed each of those cases.’

Between 2013 and 2018 the company increased production by 68 per cent, increased the amount of ore processed by 10 per cent and reduced gross costs by 22 per cent.

‘We have more than our fair share of challenges. Particularly those related to the physical environment, which make operations on a day-to-day basis quite complex. We have complex geotechnics (analysis of the geology), seismicity and heavy rainfall.

‘But Ok Tedi is blessed with a very good ore body, supportive shareholders, and a committed workforce.

‘With a mineral resource of 782 million tonnes, only 235 million tonnes, or 30 per cent, has been scheduled to reserves, which is unusual in the mining context.’

The company’s net present value rose sharply between 2015 and 2018. 

SINCE 1984 OK TEDI HAS CONTRIBUTED ON AVERAGE ALMOST 8 PER CENT OF PNG’S ANNUAL GROSS DOMESTIC PRODUCT Peter Graham