Copper is being mined on an impressive scale in one of Australia’s nearest neighbours, Papua New Guinea.

Its largest copper gold mine, OK Tedi Limited (OTML), contributes to an astounding one-third of the nation’s exports and 15 per cent of its gross domestic product. OK Tedi’s activities represent a significant source of income, employment and social infrastructure, providing much-needed services like hospitals, schools and roads.

In 2007 the mining company recorded a record after-tax profit of 2 billion kina (A$953 million). More than 1.4 billion kina was returned to the shareholders through dividends, 82 percent of which ultimately benefitted the people of PNG through shareholders PNG Sustainable Development Program Limited (PNGSDPL) and the Government.

Revenue from the PNGSDPL has been poured into a combination of sustainable energy, forestry and infrastructure schemes along with community development programs and financial investment.

“As custodians of PNG’s largest single business, OTML management, its employees and its business partners are committed to ensuring that the wealth we create will continue to be used to bring sustainable development to North Fly, the Western Province and PNG,” says OTML Managing Director, Alan Breen.

The affect of mine wastes of the OK Tedi and Fly River System have long been the company’s greatest challenge, of which it has taken significant steps toward meeting.

Of concern in recent years has been the risk of acid rock drainage, which occurs as a result of oxidisation of sulphide materials in the waste materials, particularly the mill tailings. The commencement this year of the Mine Waste and Tailings Project aims to remove the pyrite (an iron sulphur mineral) from the tailings and permanently store that material where it cannot oxidise and damage the river system.

“At the cost of 450 million kina, the project signifies the continued commitment of the board and the shareholders, to responsible management of the mining of the Mount Fubilan ore resource for the benefit of all stakeholders in the project”, says OTML Chairman, Alan Roberts.

Other scientific projects undertaken to address the impacts of mining on the riverine system are outlined each September in an Annual Environmental Report, submitted to PNG’s Department of Environment and Conservation.

The impact to the community of the Fly River System has also been addressed with a compensation package that will exceed 1 billion kina over the next six years. The community consultative process began in 2006 and included up to 500 meetings from village level, through regional level and to a representative working group.

Not content to rest there, OK Tedi Mining has for many years focussed on developing strong community health and education programs. Before mining began, infant mortality rates in the region were estimated at 129 per thousand. Today, as a result of improved medical services and nutrition, infant mortality rates are down to less than 15 per thousand, lower than the national average. Doctors have reported an increase in average life expectancy from 30 years to more than 50 years.