Ok Tedi Mining

Stock performance

History

Ok Tedi Mining began production at its copper-gold mine in the remote Star Mountains of Western Province in 1984. The mine became notorious for discharging huge volumes of tailings and waste rock into the Ok Tedi and Fly rivers, causing extensive environmental damage downstream, and Australia's BHP, the long-time operator, exited in 2002 after settling lawsuits from affected communities. The company is now owned by the PNG state and people of Western Province.

Business model

Ok Tedi mines ore from an open pit and processes it into copper concentrate containing gold and silver, which is piped to the Fly River and shipped to smelters abroad. The mine's life has been extended several times as new ore reserves were confirmed.

Market position

Ok Tedi is one of Papua New Guinea's largest mines and the country's longest-running copper producer.

Country impact

Ok Tedi has been one of the largest single contributors to PNG's exports and government revenue for four decades, while also being an emblem of the environmental and social costs of resource extraction. Its revenues fund development programs in Western Province, one of the country's poorest regions.