Papua New Guinea's OK Tedi Mine makes a loss of K305 million

THE Papua New Guinea's  Ok Tedi Mining Ltd (OTML) is projecting a revenue loss of US$100 million (K305.63mil) for last year, the National Reports.

It blamed a fire at its plant site for the 10 per cent loss of its annual revenue at the end of last year.

A spokesperson told The National that its full year production was impacted by the fire resulting in the loss of production days for two to three weeks.

But the company met its shipping commitments for the month and that shipments for the remainder of the year will not be impacted.

“The number of shipments we make over the course of a year varies depending on production and the size of the customer parcels,” the spokesperson said.

“At an annual production rate of 400Ktpa (kilo tonnes per annum) of copper concentrate, and with export parcels usually being between 10Kt and 20Kt, we generally make between 20 and 40 export shipments a year.

“As of Jan 6, power supply to the SAG-2 Flotation circuit was restored after significant remedial work was completed.

“The other processing circuit (SAG-1), which sustained severe damage as a result of the fire is expected to be operational by late (this month). An investigation report into the cause of the fire and recommended actions to prevent a recurrence was submitted to the chief inspector of mines who has given us the approval to re-commence operation after careful deliberation and assessment of the report.”

The company expects a loss in revenue to be around US$100 million at current metal prices.

“Revenue generated by the mine has approximated US$1 billion (K3.5bil) in recent years,” the spokesperson said.

“Therefore, US$100 million is in the order of 10 per cent of our normal annual revenue.”

The National/Pacific Mining Watch

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