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Ok Tedi Mine

Copper and gold mine in Papua New Guinea

  • 7 min read
  • 4 chapters

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Through Copper, Tonne and Tailings

The mine is operated by Ok Tedi Mining (OTM), which is majority-owned by the PNG Sustainable Development Program Limited (PNGSDPL). In 2013 it was nationalised by the Government of Papua New Guinea in controversial action. Prior to 2002, it was majority owned by BHP Billiton, the largest mining company in the world since a merger in 2001.

Located in a remote area of PNG, above 2,000 m (6,600 ft) on Mount Fubilan, in a region of high rainfall and frequent earthquakes, mine development posed serious challenges. The town of Tabubil was built to serve the mining operation.

History

Before mining operations, Mount Fubilan was described as a copper mountain with a gold cap. Exploratory drilling in the area began in the 1970s, and was run by the Kennecott Copper Corporation.

In the early 1980s, BHP secured a mining lease. The first gold was mined at Ok Tedi in 1981. Bechtel, in a joint venture agreement, provided engineering, procurement, and construction services. In 1984, BHP began exploiting the gold cap by using cyanide extraction procedures. After the gold deposit was depleted, the company surveyed for mining the much larger copper deposit underneath. At that time, this deposit was believed to be the largest copper deposit in the world. BHP entered into a partnership with the Government of Papua New Guinea, Amoco and Inmet Mining, to mine the copper deposit. BHP maintained a majority share in the mine.

In 2002, BHP Billiton completed its withdrawal from the project by transferring its majority shareholding to the PNG Sustainable Development Program in response to the ongoing Ok Tedi environmental disaster. After the transfer, project shareholding was as follows: PNG Sustainable Development Program Limited (52%), the State of Papua New Guinea (30%) and Inmet Mining Corporation (18%).

All mining operations at Fubilan have had their headquarters at Tabubil.

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