Independent assessor for Ok Tedi mine
Post-Courier (PNG), Copyright 2000
November 27, 2000
THE shareholders of Ok Tedi Mining Ltd are considering the possibility of engaging an independent assessor to advise them on the future of the Ok Tedi mine, Mining Minister Michael Laimo said on Friday.
Mr Laimo also said that the government was yet to review the recommendations of a task force that was set up earlier this year after the government reviewed a report on the mine by the World Bank.
The World Bank had recommended early closure due to the environmental damage caused by the mining operations.
This view is also shared by BHP, the major shareholder at Ok Tedi, who wants the mine shut down within five years.
The task force that was set in April was to review and recommend to the government the most appropriate measures to deal with the current environmental situation caused by the mine, including BHP’s exit from the project.
“Given the current work being done by the task force, the government still maintains the position that the Ok Tedi mine will continue to operate up to the end of its current estimated mine life to the year 2010,’’ Mr Laimo said.
He said in a statement that he was clarifying the situation in light of the current uncertainty surrounding the future of the mine. Mr Laimo said the shareholders – BHP, the State of PNG and Inmet Mining of Canada – had met several times to consider the possibility of engaging the independent assessor.
“This independent assessor, when engaged, would be required to provide advice to the Ok Tedi board on the operation of the mine after BHP’s exit,’’ Mr Laimo said. He said the secretaries for finance and treasury, and mining represent the State at the shareholder meetings respectively.
“Given the current status of work being undertaken by the government task force on Ok Tedi and the current discussion among the shareholders,’’ Mr Laimo said that there is “no immediate changes (planned) to the operations of the mine.’’
Mr Laimo also thanked the people who were affected by the mining operations for their willingness to consult with the government.
Meanwhile, the Australian Financial Review newspaper has reported that the government has welcomed a proposal by BHP to set up a community trust for landowners that are affected by the mine.
The paper reported that the setting up of the Future Generations Trust Account is a key part of BHP’s exit strategy on Ok Tedi.
A spokesman from the Prime Minister’s office told the Australian newspaper that he considered the proposed trust “fairly generous’’, giving BHP new hope that it could exit the mine early.
BHP has always maintained that it hopes to have a clear position on Ok Tedi by the end of December.