OTML Performance Table

Figures are taken from OTML's business reports (print and website)

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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.

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created April 2001
Update Jan. 2003

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