Ok Tedi loses revenue

Ok Tedi Mining Ltd (OTML) is losing K66 million per week (US$20m) in revenue since suspending its operations on August 5th due to a number of positive COVID-19 cases.

This has directly impacted foreign currency inflows into PNG.

OTML says it also continues to incur a significant amount of its normal operating costs, losing approximately K33 million (US$10m) per week.

The company now plans to restart its operations on the 14th of September, six weeks after suspending the mine.

Since the suspension the Company initiated a contact tracing, testing and an isolation program at the mine site with over 3,000 samples collected with 143 positive COVID-19 cases identified in Tabubil.

Employees and contractors who have tested positive have been isolated in controlled accommodation facilities and are all asymptomatic.  Eighteen of these cases have since recovered.  

OTML Managing Director and Chief Executive Officer Musje Werror said: “The testing program has provided us critical information and after careful assessment we are now better informed to restart operations without compromising the health and safety of our employees, contractors and communities.” 

He added that the COVID-19 pandemic has caused significant challenges to the business but has also presented opportunities for OTML to review and change the way it operates.

A major change necessary to commence operations is a change to the employee roster panels to accommodate 14 days isolation at designated Entry Point Centres. Returning employees and contractors are required to have a negative test result before they can travel to site and commence work.

“We are establishing Entry Point Centres or isolation facilities in Port Moresby, Lae, Kokopo, Mt Hagen, Kiunga, Tabubil and Cairns as well as at our dredging site in Bige to screen and test all our employees and contractors before they return to work.” Mr Werror said. 

Press Release