OTML Performance Table

Figures are taken from OTML's business reports (print and website)
Table 1: production

In the first stage of mining, the rock cap containing gold was removed, and gold leached with cyanide solution. This yielded "gold bullion" solid bars, and some silver, till 1989. Then the mine changed to copper ore concentrate production. The metals - copper, silver, and gold - are extracted at smelters like NA, Hamburg.
Year 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 Sum
Gold bullion (tons) 16 19 11 6 0                         52
Copper concentrate (1000tons)     107 196 442 521 601 569 589 588 614 542 334 491 624 694 695 7606
Contained gold (tons)     7 12 16 14 11 11 12 15 15 13 8 13 12 17 14 190
Contained silver (tons) 6 6 11 20 30 27 26 24 28 30 28 27 16 26 33 45 36 418
Contained copper (1000tons)     39 53 135 170 204 193 203 207 213 186 112 152 188 203 204 2462

Table 2: national economy

Ok Tedi Mine contributes to the national economy, by selling its products to the world market, and buying domestic equipment and services. The part of the financial transactions that take place on the national market, improve state income and income of people. However, OTML does not provide the complete figures of profits and payments, e.g. to pay back bank loans abroad, nor do these figures give a picture of payments of the state of PNG for foreign debts, that were used to become shareholder of the enterprise. The currency of PNG, Kina, did not remain stable over the years. In the eighties, it was equivalent to the US$, and dropped to one third in 2000. 
Year 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 Sum
Exports (KmiIl.) 172 205 274 285 350 521 443 420 381 536 882 606 378 701 805 1026 1148 9133
Contribution to Total PNG Expt % 17 18 22 26 31 38 26 24 16 20 3 18 12 19 16 18    
Goods &.Services (Kmill.) n.a. n.a. n.a. n.a. 125 151 172 156 131 87 220 124 176 321 463 319   2446
Proportion bought in PNG % n.a. n.a. n.a. n.a. 63 58 59 55 58 68 66 54 49 41 42 39    
Taxes/duties/fees (KmiII.) 6 11 25 13 14 50 39 26 23 24 24 63 62 52 92 113   637
Royalties paid to state of PNG (KmiII.) 2 3 3 4 5 6                       22

Table 3: local economy

This covers the expenses of OTML and related landowner business to the Western Province (OTML-wages already included in table 2?).
Year 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 Sum
Provincial and Local Importance                                    
Royalties to Provincial Gov. (Kmill.)             4 3 3 5 7 8 4 10 11 12   68
Royalties to Mining Lease L'owners (Kmill.)             2 1 1 2 3 3 2 4 5 8   31
Special Support Grant: Entitlement (Kmill.)           4 4 4 4 5 n.a. n.a. na. n.a. n.a. n.a.   21
Special Support Grant: Amount paid (Kmill.)           3 5 4 4 1 n.a. n.a. n.a. n.a. n.a. 1   18
Landowner lease &compensation payments (Kmill.) 1 1 1 1 1 1 1 1 1 3 17 8 7 16 15 13   85
No.of OTMLemployees 1365 1777 2761 2468 2139 2016 1930 1875 1807 1928 1945 1993 1936 1761 1905 1965    
Proportion of PNG citizens(%) 81 79 76 79 86 87 67 88 88 90 90 90 90 91 92 92    
Lower Ok Tedi&FIy River Development Trust (Kmill.)           3 3 3 3 3 3 3 4 4 4 8   24
Education&Training (Kmill.) 1 1 1 1 1 2 2 1 1 2 3 3 2 1 3 5   20
Landowner Business Development                                    
Nr businesses fully or party owned by local landowners       38 41 44 49 58 59 66 73 74 79 80 81 72    
Gross turnover of landowner businesses (Kmill)       22 29 33 51 56 64 68 73 73 80 81 73 114   628
Dividends paid by landowner businesses (Kmill)         0 1 1 2 5 5 5 5 1 1 1 2   26
Nr of people employed by landowner businesses       621 571 774 1200 1260 1077 1141 1260 1400 1000 1050 1020 2300    

In its lifetime including year 2000, the mine exported gold and ore concentrate worth 8 billion Kina. It spent almost 1 billion Kina for taxes, royalties, and local compensations. Goods and services bought in PNG amount to 1.2 billion. 80 million Kina of wages were paid to the miners in 2000, but it is not clear, if these are part of "goods and services bought in PNG" (130 mill. Kina in 2000). A calculation in favour of OTML would add the turnover of landowner businesses (600 mill. Kina) to contribute to PNG's economy. The business reports still leave a gap in the figures, which makes it difficult to assess, what proportion of the mine's turnover remained in PNG, and what was transferred abroad. The question raised by the Starnberg study, how a developing country may benefit from a large scale mining enterprise, cannot be answered, as long as approximately 4 billion Kina remain unaccounted for.


created April 2001
Update Jan. 2003

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