Ok Tedi Mining Ltd is optimistic this year after a strong return to production in 2016, following a seven month hiatus.
Speaking at the Australia-PNG Business Council Forum in Port Moresby, Executive Officer and Managing Director, Peter Graham, said despite returning after the production disruption, due to the El Nino drought, the mine performed well, generating K2.1 billion in a 10 month production run.
Graham said their optimism is based on the mine's mineral reserves, which underpins a strong base case.
“Our outlook for 2017 is optimistic. Ok Tedi’s got a pocket of mineral reserves underpinning a strong base case, 1.45 million tons of copper, and 5.7 million ounces of gold. "Opportunities to convert the existing resources to reserve have been identified and reflected in our target case,” he said.
Graham said they have taken a strategic review of their processes and business plans as well as the mine life plans.
“Part of restoring operations, we took a fresh look at our planning processes and our business strategy.
"Development of the 2016 strategic plans, and in particular our life of mine plans, including a significant revision of the OK Tedi planning processes and models were used to develop this life of mine plans.
“This resulted in higher confidence in planning outcomes, and better alignment of these outcomes with businesses objectives.”