Statement re Ok Tedi Mine
BROKEN HILL PROPRIETARY COMPANY LIMITED
11 August 1999
BHP AND OK TEDI
The Broken Hill Proprietary Company Limited (BHP) said today it would consult
a range of interested parties before making any decisions about the future of
its 52 per cent interest in the Ok Tedi copper mine in Papua New Guinea.
The Company said consideration of its future involvement with the Ok Tedi mine
would be based on open consultation and finding a balance between social,
environmental and economic objectives.
Scientific reports, released by Ok Tedi Mining Limited (OTML) today, confirm
that the environmental impact of the mine and the area of land affected would
be significantly greater than indicated by previous studies.
The reports also show that none of the waste management options considered by
OTML offer a clear solution to these environmental impacts.
Social and economic research has underlined the importance of the mine to its
local communities as well as the Western Province and the PNG economy. Ok
Tedi represents 20 per cent of PNG's export income.
BHP Managing Director and CEO, Mr Paul Anderson, said the reports, considered
as a whole, illustrate the difficulty of finding a way forward for the mine.
'There are no easy answers offered by these reports for BHP, the other
shareholders in the project or for PNG. But we are determined to find the best
answer.'
'Having considered the environmental and social reports, we feel the
responsible course of action is for the mine to continue to operate while the
PNG Government, shareholders and local communities decide on the longer term
future for the mine.
'Obviously, the PNG Government and the local communities will need to find
how to best balance their short term and long term interests with the
environmental impact of the mine. The future of the mine is ultimately their
decision.'
'The PNG Government and local communities have so far indicated that they do
not want the mine to close.
'From BHP's perspective as a shareholder, the easy conclusion to reach, with
the benefit of these reports and 20/20 hindsight, is that the mine is not
compatible with our environmental values and the Company should never have
become involved.'
'That is the easy conclusion. The difficult issue we face is where to go
from here. More than 50 000 people depend on the economic activity the mine
generates.
'BHP will need to decide what its future involvement with the mine should be.
In doing so, and recognising that OTML will be consulting local communities
and affected landowners, BHP will seek the views of the PNG Government, the
Australian Government, the World Bank and non-government organisations.'
* * * * *
For information contact: Mandy Frostick
Manager Media Relations - Melbourne
Tel: +61 3 9609 3137 (bh)
+61 3 9687 6651 (ah)
+61 419 546 245 (mobile)
OK TEDI MINING LIMITED
MEDIA RELEASE
Wednesday 11 August 1999
OTML RELEASES ENVIRONMENTAL IMPACT OPTIONS REPORTS
Ok Tedi Mining Limited today released full details of its
investigations into options for mitigating the environmental
impact of the Ok Tedi mine in Western Province, PNG.
A workshop in Port Moresby to discuss the risk assessments
and scientific reports was attended by representatives of
NGOs, churches, landowners and government.
The company announced in June that preliminary studies
showed that the environmental effects of the mine would be
far greater and more damaging than predicted.
OTML said that the dieback of vegetation associated with the
mine's tailings problems could cover up to 1350 sq kms along
the Ok Tedi and Fly River.
The reports released today verify the earlier announcement
that none of the four options studied showed a clear
solution to the mine waste issue that was causing the
environmental damage. The four options were: to continue the
current dredging trial in the lower Ok Tedi; to dredge and
pipe the tailings to a formed storage area; do neither, and
close the mine early.
OTML managing director, Dr. Roger Higgins, said that the
engineering and scientific reports released today provided
OTML with a far better understanding of the environmental
issues associated with copper mining at Ok Tedi.
'We believe this is the best advice available, and this has
been borne out by a review of the scientific credibility of
the reports by an international expert panel, the Peer
Review Group,' he said.
'What the reports, which included studies on the social
implications, tell us is that we are facing a complex issue
with social and economic components, in addition to the
environmental impacts,'' he said.
'We have also had the overall risk assessment, which
combines environmental and social issues, audited by an
independent specialist.'
Dr. Higgins said that OTML was releasing the documents
because it wanted to have as broad a base for debate as
possible before a decision is made as to how to respond.
'We have already embarked on a comprehensive community
consultation program to make sure the people whose lives
have been changed by the mine, and will be changed by the
environmental impact, make their views known to us and the
PNG Government.
'Ultimately, it is the villagers along the affected river
systems and the PNG Government as environmental regulator
who must decide the best way forward. The consultation
process will help them make that decision.'
The PNG Government has commissioned an independent review of
the Ok Tedi studies, which will advise the Government as to
how it might respond. The PNG Government has been fully
briefed by OTML on the detail of the reports.
OTML has three shareholders: BHP owns 52 per cent, PNG
Government, 30 per cent, and Canadian mining company, Inmet
Mining Corporation, 18 per cent.
Dr. Higgins said that, of the PNG Government's 30 per cent
share, 2.5 per cent is held on behalf of mine area
landowners, and 12.5 per cent on behalf of the people of
Western Province.
'Irrespective of what decision is made in response to the
reports, OTML has a fundamental obligation to the people
affected by the mine. We will be working with them to find a
way to respond to their needs and secure their future.
'The reality is that Ok Tedi mine contributes 20 per cent of
PNG's exports, and ten per cent of its gross domestic
product. The mine is intricately bound up with PNG's
economic future.
'In the Western Province and the immediate mine area, the
importance of the mine is much greater, providing employment
and social infrastructure as well as direct income from
royalties and business opportunities.
'The environmental, economic and social aspects of Ok Tedi's
operations demand the consideration of wide-ranging views
from many stakeholders,' Dr. Higgins said.
The OTML board will decide how OTML will proceed in November
when it has consulted widely and the PNG Government has
formed its own response.
More information:
Dr Roger Higgins: (675) 321 3522
Managing Director
Ok Tedi Mining Limited
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