Ok Tedi Mine in Papua New Guinea Explained

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Explore the lush tropical beauty of Salamaua's coastline with sandy beaches and palm trees in Papua New Guinea.
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The Ok Tedi Mine in Papua New Guinea is a significant mining operation that has been in existence since 1984. It's located in the Star Mountains of the Western Province, which is one of the most remote regions of the country.

The mine is owned and operated by Ok Tedi Mining Limited, a company that has a long history of mining in the area. The mine is known for its gold and copper deposits, which are extracted through a combination of open-pit and underground mining methods.

The mine's operations have had a significant impact on the local environment and communities. The mine's waste rock and tailings have been discharged into the Ok Tedi River, which has led to major environmental damage and health problems for local residents.

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History

Mount Fubilan, the site of the Ok Tedi Mine, was initially described as a copper mountain with a gold cap.

Exploratory drilling in the area began in the 1970s, led by the Kennecott Copper Corporation.

Credit: youtube.com, The Ok Tedi Mine: Papua New Guinea's Tale of Wealth, Tragedy, and Resilience | NarratePNG

The first gold was mined at Ok Tedi in 1981.

BHP secured a mining lease in the early 1980s and began exploiting the gold cap using cyanide extraction procedures in 1984.

BHP maintained a majority share in the mine.

In 2002, BHP Billiton transferred its majority shareholding to the PNG Sustainable Development Program in response to the ongoing environmental disaster.

Project shareholding was restructured, with PNG Sustainable Development Program Limited holding 52%, the State of Papua New Guinea holding 30%, and Inmet Mining Corporation holding 18%.

Mine Details

The Ok Tedi Mine is an open cut operation that has reduced Mount Fubilan to a deep pit in the ground. By 2004, the mine had produced a staggering 8,896,577 tonnes of copper concentrate.

A significant portion of this copper concentrate contained a substantial amount of gold metal, specifically 218.8278 tonnes. This is a remarkable find, and it's no wonder the mine has been so successful in extracting valuable resources.

Credit: youtube.com, Ok Tedi Corporate Video 2025

The mine operates on a continuous basis throughout the year, producing approximately 78,000t of ore and 80,000t of overburden. This is a massive undertaking that requires a lot of heavy machinery.

The mine uses open pit methods, including drilling and blasting, to extract the ore. This process involves excavating the blasted rock along 15m high pit benches, which are then loaded into haul trucks.

A fleet of 26 haul trucks, including 23,170t Caterpillar 789 haul trucks and three 100t Caterpillar 777D haul trucks, is used to transport the ore. This is a significant investment in equipment, and it's clear that the mine is committed to getting the job done efficiently.

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Tabubil

Tabubil is a small town in Papua New Guinea, located near the Ok Tedi Mine.

The town was originally a small settlement of about 200 people, but its population grew rapidly due to the mine's construction.

The mine's construction brought significant economic growth to the area, but it also had a major environmental impact.

In 1984, the mine's tailings dam failed, releasing a massive amount of toxic waste into the Ok Tedi River.

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Environmental Impact

Credit: youtube.com, The Ok Tedi Mine Pollution: Examining the Environmental Damage in Papua New Guinea !!

The Ok Tedi Mine has had a devastating impact on the environment. The mine operators discharge 80 million tons of contaminated tailings, overburden, and mine-induced erosion into the river system each year. This has caused widespread harm to the 50,000 people who live in the 120 villages downstream of the mine.

The discharge has killed or contaminated fish, which has had a ripple effect on all animal species in the area and the indigenous people who rely on them for food. Chemicals from the tailings have also caused harm to the local ecosystem. The dumping of mine waste has changed the riverbed, making it shallower and more turbulent, disrupting indigenous transportation routes.

About 1,300 square kilometers were damaged in this way, with the concentration of copper in the water being about 30 times above the standard level. However, it's still below the World Health Organization standards. The mine waste has also raised concerns about its potential impact on the northern Great Barrier Reef, which is located offshore from the river mouth.

Credit: youtube.com, Tabubil: The Resilient Town in Papua New Guinea’s Rainforest | Ok Tedi Mine Impact

The Ok Tedi Mine has also had a significant impact on the local forest and crops. Flooding caused by the raised riverbed has left a thick layer of contaminated mud on the flood plain, affecting plantations of taro, bananas, and sago palm that are the staples of the local diet. The massive amount of mine-derived waste dumped into the river exceeded its carrying capacity.

The mine waste has caused a relatively deep and slow river to become shallower and develop rapids, disrupting indigenous transportation routes. The river bed has been raised by 10 meters, causing widespread damage to the surrounding area. The concentration of copper in the water is about 30 times above the standard level, but it's still below the World Health Organization standards.

The Ok Tedi Mine has also had a significant impact on the local community. The mine waste has killed or contaminated fish, which are still eaten by the people of the surrounding villages. However, fish counts decrease closer to the mine, highlighting the devastating impact of the mine waste on the local ecosystem.

Anthropological Impact

Credit: youtube.com, AIG-GSAQ Tech Talk: Copper-gold mineralization in the Ok Tedi district, Papua New Guinea

The Ok Tedi Mine had a profound impact on the Wopkaimin people, who had limited exposure to the Western world before the mine's construction.

The government of Papua New Guinea was ill-equipped to deal with the scale and scope of the project, rejecting all studies examining the social impact of the mine.

The mine disrupted the Wopkaimin's traditional subsistence-focused organization of production, leaving many men without work after the construction phase ended in 1984.

Approximately half of Wopkaimin men worked for Bechtel as construction workers from 1981 to 1984, mostly for low wages.

Local Wopkaimin people began referring to the mine as the "place without work" after the men were laid off en masse.

The traditionally female role of subsistence yam farming largely fell outside of the new capitalist system introduced by the mine, severely impacting women's economic role.

The mine also introduced the Wopkaimin to alcohol, specifically in the form of beer, which spawned social unrest.

Many Wopkaimin responded to outside efforts to convert them to Christianity by decentralizing their indigenous religion and continuing traditional rituals as a form of protest.

By 1984, Christian missionaries had converted a substantial number of the Wopkaimin people to Christianity, and had prevented them from singing traditional songs.

Mine Operations

Credit: youtube.com, Ok Tedi Mining Limited Transport at Tabubil Western Province, Papua New Guinea.

The Ok Tedi Mine operates as an open cut mine, reducing Mount Fubilan to a deep pit in the ground.

By 31 December 2004, a massive 8,896,577 tonnes of copper concentrate had been mined, containing 2,853,265 tonnes of copper metal and 7,035,477 troy ounces of gold metal.

The mining process at Ok Tedi is continuous throughout the year, producing approximately 78,000t of ore and 80,000t of overburden.

Open pit methods, including drilling and blasting, are employed to extract the ore, with the blasted rock being loaded into haul trucks using large hydraulic shovels.

A fleet of 23,170t Caterpillar 789 haul trucks and three 100t Caterpillar 777D haul trucks are used to transport the ore, along with other mining equipment like hydraulic excavators and drill rigs.

The mine's operations are supported by a range of heavy machinery, including dozers, loaders, and graders, all of which play a crucial role in extracting the ore and moving it to processing facilities.

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The Mill

Credit: youtube.com, The Concentrator: The Core of the Mine

The Mill is a crucial part of the mine operations, transforming raw material into copper concentrate slurry and gold. Located adjacent to the mine, it's a vital step in the process.

The mill operates two sag mills, each paired with two associated ball mills, to break down the ore into smaller particles. This grinding circuit is equipped to handle large amounts of ore.

Copper concentrate is produced as slurry and piped 137 kilometres along the Kiunga-Tabubil Highway to Kiunga, the main port of the district.

Kiunga Tabubil Highway

The Kiunga-Tabubil Highway plays a vital role in the mine operations in Papua New Guinea. It's a crucial transportation route that connects the mine to the town of Tabubil.

The highway runs parallel to the Ok Tedi River and is maintained by Ok Tedi Mining, the mine's primary beneficiary. This is a significant responsibility, considering the cost of maintaining the road is K1.5 million a year.

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Hills at the Mine
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Parts of the highway are often consumed by the river and need to be rebuilt. This is a regular occurrence, highlighting the importance of ongoing maintenance.

A copper slurry pipeline runs along the full length of the road, connecting the mine to Kiunga. This pipeline is a key component of the mine's operations.

The highway is also a vital transportation route for freight and haulage, particularly servicing the mine and the town of Tabubil. This is a testament to the highway's importance in supporting local industry.

Mine Life Extension and Community Support

In 2013, the PNG Government took control of the Ok Tedi Mine, seizing 100% ownership and repealing laws that allowed people to sue mining giant BHP Billiton over environmental damage. BHP expressed confidence in its indemnities, stating it had other protections in place for shareholders.

Community consent for the mine's life extension to 2025 was secured through the signing of Community Mine Continuation Extension Agreements between the Community representatives and OTML in 2012 and 2013. This facilitated planning for the Mine Life Extension project throughout 2013.

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The Ok Tedi Mining company launched the OT2025 project to transition the business to a smaller operation in preparation for the mine life extension. This effort aimed to minimize the impact of the mine's operations.

The Mine Associated Communities, comprising 156 villages, endorsed the mine's life extension through the signing of the Community Mine Continuation Extension Agreements. This agreement ensured the community's support for the mine's continued operation.

Here's a list of key dates related to the mine life extension and community support:

  • 2012: Community representatives and OTML signed Community Mine Continuation Extension Agreements.
  • 2013: PNG Government seized 100% ownership of the Ok Tedi Mine and repealed laws allowing people to sue BHP Billiton.
  • 2013: Ok Tedi Mining launched the OT2025 project.
  • 2013: Community consent for the mine's life extension to 2025 was secured.

Geology and Reserves

The Ok Tedi Mine's geology is a fascinating story of how the deposit was formed. The mine lies within the northern edge of the proterozoic to paleozoic aged basement rocks of the Australian continent.

The rocks hosting the deposit are a mix of continental margin marine sedimentary siltstones, mudstones, and limestone concentrated during the cretaceous to mid-miocene period. This geological setting is crucial in understanding the mineralization process.

Credit: youtube.com, We Found Gold In Ok Tedi Mining Waste!

As of December 2009, the mine contained 113 million tons of proven and probable reserves graded at 0.8% Cu and 1.1g/t Au. This significant reserve is a testament to the mine's rich mineral deposits.

The Ok Tedi skarns were produced as a result of the Sydney monzodiorite emplacement that led to the replacement of limestone / carbonate facies due to a chemical alteration with the magmatic fluids. This process is a key factor in the formation of the mine's mineral deposits.

Intrusives, skarns, and fractured siltstones near to the intrusive stocks host the protore copper, gold, and silver minerals at the deposit. The main ore body is overlain by an oxide gold cap developed due to the extensive leaching and oxidation of the sulphide minerals.

Mining in Papua New Guinea

Mining in Papua New Guinea is a significant operation, with the OK Tedi mine producing approximately 78,000t of ore and 80,000t of overburden every year.

Credit: youtube.com, OK TEDI MINE Extend Mine Life to 2050 Bolster PNG ECONOMY

The mine uses open pit methods, which involve drilling and blasting to extract the rock.

Blasting is a crucial step in the process, and the mine employs this method on a continuous basis throughout the year.

The blasted rock is then excavated along 15m high pit benches, which are a standard feature of the mine's operation.

The rock is loaded into haul trucks using large hydraulic shovels, including three 3 RH 200 O&K shovels.

The haul trucks themselves are quite impressive, with a fleet that includes 23,170t Caterpillar 789 haul trucks and three 100t Caterpillar 777D haul trucks.

In addition to the haul trucks, the mine also uses a range of other equipment, including three Hitachi hydraulic excavators, three Atlas Copco Pit Viper drill rigs, and one Tamrock drill rig.

The mine's fleet of dozers includes ten Caterpillar D11 dozers, two Caterpillar 992 loaders, and three Caterpillar 16H graders.

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Frequently Asked Questions

Who owns Ok Tedi Mine now?

Ok Tedi Mine is 100% owned by Papua New Guineans, with the majority stake held by the Independent State of Papua New Guinea and a smaller stake held by the people of Western Province.

Tommy Weber

Lead Assigning Editor

Tommy Weber is a seasoned Assigning Editor with a keen eye for detail and a passion for storytelling. With extensive experience in assigning articles across various categories, Tommy has honed his skills in identifying and selecting compelling topics that resonate with readers. Tommy's expertise lies in assigning articles related to personal finance, specifically in the areas of bank card credit and bank credit cards.

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