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K1.4bil spent on Ok Tedi Mine extension work

Staff Reporter | 6:42 PM | |
OK Tedi Mining Ltd work on the mine life extension has already cost the miner US$604 million (K1.4 billion)until  last month, managing director and chief executive Nigel Parker said. 
Parker said: “The mine life is expected up to 2025, with final extension approval expected to be come soon.” 
According to the mining company’s website, OTML management viewed the gold and copper mine life to extend with a combination of two underground mines and one open pit operation. 
The website said the mine life extension would produce an estimated 90 million tonnes of ore with close to 700,000 tonnes of copper and 2.3 million ounces of gold during its extended life.
The mine would be a lot smaller compared with the current operations. 
Ok Tedi’s current annual copper and gold production is 160,000 tonnes and 540,000oz gold respectively.
It was expected that the mine extension would generate K3 billion in state revenues (dividends, taxes, royalties). 
Other benefits included extended lease payments, a level of on-going compensation and tax credit infrastructure and maintenance of social services for the people of North Fly and the rest of Western. 
Meanwhile, Parker said OTML had begun the export of about 80 tonnes per month of recycled rubber tyres in the form of rubber crumbs to a buyer in Australia. The National