Question

The OK Tedi Copper Mine

How do you think the land owners were treated and explain in detail the ethical issues?

Answer 1

The OK Tedi copper mine is an open pit copper and gold mine located in Papua New Guinea near the OK Tedi river. It has proven to be a massive environmental disaster, the biggest caused by humans. Discharges from the mine have been released into the OK Tedi river for more than a decade and it has caused humungous environmental hazards. It has brought about social hazards to the people living living aroung the 120 villages downstream the mine.  The United Nations Environment Programme has noted that the Ok Tedi mine site’s "uncontrolled discharge of 70 million tonnes of waste rock and mine tailings annually has spread more than 10 km (6.2 mi) down the Ok Tedi and Fly rivers, raising river beds and causing flooding, sediment deposition, forest damage, and a serious decline in the area's biodiversity. The resulting devastation caused by the mining of Ok Tedi has included the loss of fish, a vital food source for the local community; loss of forest and crops due to flooding; and the loss of "areas of deep spiritual value for villagers are now submerged in mine tailings.

In 2013, the PNG ( Papua New Guinea) Government seized 100% ownership of Ok Tedi Mine and repealed laws that would allow people to sue mining giant BHP Billiton over environmental damage. BHP expressed confidence, stating that it had other indemnities in place that protected shareholders from future legal costs. Ok Tedi Mining Limited launched the OT2025 project that was focused on transitioning the business to a smaller operation in preparation for Mine Life Extension.

Community consent for the mine’s life to be extended to 2025 was endorsed by the Mine Associated Communities, which is made up of 156 villages, through the signing of the respective Community Mine Continuation Extension Agreements by the Community representatives and OTML at the end of 2012 and beginning of 2013. The signing of the Agreements facilitated the Company to commence planning for the MLE project throughout 2013.