Thursday, June 07, 2012

Ok Tedi mine life extension study nearing completion


A feasibility study into an additional 10-year mine life extension (MLE) of the giant Ok Tedi mine is in the final stages of completion, according to Ok Tedi Mining Ltd managing director and chief executive officer Nigel Parker, The National reports.
The cost of mine life extension is in the range of US$ 850 million
Parker told the PNG Sustainable Development Program (PNGSDP) annual report meeting on Tuesday that the MLE was awaiting final board approval, and submission of change notice to the state was expected to be by July 2012
Parker…feasibility study to be completed next month.-Nationalpic by MALUM NALU

Prior to the exit of Inmet, the OTML board and management embarked on the possibility of an additional 10-year MLE from 2015-2025.
“The Mt Fubilan deposit has the resource to continue,” Parker said.
“Mining methodology is a combination of open pit continuation and underground mining.”
He said focus issues were:
  • ·         Stable waste dump for 350 – 500 million tonnes of waste rock;
  • ·         Tailings to the riverine system;
  • ·         Hydro geology of the high rain fall environment;
  • ·         Community approvals; and
  • ·         State of PNG approval / enabling legislation
There was also leveraging off the OTML PNG community relations and mining capability to enter into PNG exploration and JV activities.
Parker said in considering a mine life extension,  the OTML board and management focused on a number of prime issues:
  • ·         The impact of the mine life extension on the environment is in the forefront of the feasibility: management was of the view that the constructability of a stable waste dump was possible. This view was supported by independent assessments; Tails would continue to be deposited to the riverine system; That the sourcing of a tails solution continued to be pursued; and That Non Acid Forming sediment was delivered to the Bige dredging programme to facilitate the close out of the dredged embankments.
  • ·         That the project is financially viable and that it can be internally funded within the framework of continuing to support the State through direct/indirect taxes and dividends.
  • ·         The cost of mine life extension is in the range of US$ 850 million; and
  • ·         The continuation of OTML’s ability to support the people of the Western province in the absence of the Fly River provincial government’s capacity.

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