New life in the Ok Tedi mine
COO outlines his strategy for the future.
The Ok Tedi mine lease has been extended for 11 years, but with falling ore prices, lower head grades and production issues, it faces critical challenges.
Q: How has the past year been for Ok Tedi?
MW: It has been a tough year. We have experienced similar production issues to those that we had in 2013, such as the flooding of the mine pit caused by record rainfall events preventing access to our main ore body, and issues with our ageing plant and concentrator infrastructure, resulting in unplanned downtime. These issues along with falling metal prices and lower head grades have contributed to below-budget performance, particularly in the second half of the year.
Q: Parliament passed legislation on November 26, extending the life of the mine by 11 years until 2025; what are the plans for the coming years?
MW: We have been preparing for the mine life continuation since 2009 when we commenced the consultation process with the mine associated communities in the Western Province. During the consultation, we informed the communities that the mine will be smaller, generating less revenue and profits and because of this, the company will be implementing a number of initiatives to ensure the business remains viable.
Some of the initiatives include reviewing our workforce plan, introducing new rosters, implementing a new business operating system – SAP, significantly reducing our costs, and reviewing how we train and develop our people, to name a few.
We are also preparing for the future beyond 2025, and will continue to fund our exploration programs on our near-mine exploration leases.