2015 PNG Mining and Petroleum Conference
“Opportunities in Challenging Times”
Here are some key takeaway points from Peter Graham, the Managing Director for OK Tedi Mining (OTML), when he addressed the current state of OTML: “Managing through a dry weather event.”
Dry Weather Effects
- In comparison to the El Nino effects of 1997-98, the 2015 drought is by far the worst ever experienced by the people of Western Province and OTML
- Suspension of operations commenced in the middle of August
- 90,000 employees, casual employees and contractors had to be moved from the mine site and back to their homes
- There has been very little water
Management Plan
- OTML is trying to cut costs to relieve stress on the company
- OTML’s preparations to manage the business during these hard times involves; 1) Conservation; 2) Rationing; 3) Restricting Output; 4) Preparations for suspension; 5) Operations suspended
Restarting Operations
- Indication from weather experts in Australia and Papua New Guinea say that by February and March of 2016 operations might pick up
Community Impacts & Relief
- Communities are reliant on OTML for some basic services such as fuel delivered from POM to Tabubil; food delivered to Tabubil supermarket; Tabubil Hospital and Clinics; Power, water and sewerage in Tabubil and Kiunga
- Employees, Local and Regional Suppliers stood down
- Temporary loss of employment and cash into communities
- Scarcity of food, clean water and fuel has resulted in hardship, disease, inflated prices and theft
- OTML has ensured that payments to mine communities are honoured
- OTML has Contributed K5 million to the people of Western Province for supplies, food and water
Weatherproofing the Business
- Maintain adequate stocks of diesel, food and critical spares
- Minimise availability of river transport
- Maintain adequate cash reserves
- Communicate business conditions to help align stakeholder expectations
Peter Graham is confident that OTML will come back stronger.
You can watch more from Mr Peter Graham on Resource PNG, with the episode date TBA.
For more PNG Mining & Petroleum conference updates, follow Resource PNG to the Facebook Page.
https://www.youtube.com/embed/x_qc4hBO7GA ?feature=oembed&wmode=opaque&showinfo=0&showsearch=0&rel=0
