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OK-Tedi-Annual-Review-2018-Web.Pdf OK NEXT PAGE OK TEDI MINING LIMITED | ANNUAL REVIEW 2018 REVIEW ANNUAL TEDI MINING LIMITED | OK TEDI MINING LIMITED ANNUAL REVIEW 2018 ANDAN PROINE NEXT PAGE STAR PREVIOUS PAGE MOUNTAINS Telefomin Oksapmin Tabubil Olsobip Haidauwogam Ok Tedi River OLSOBIP N KIUNGA NINGERUM RURAL REGION MAP R NORT L DITRIT Bige Konkonda REGION MAP KEY I Kiunga A Mine Area Provincial Border N NOMAD Nupmo District Boundary Ioke N River Tutuwe Local Level Government Boundary Wai-Tri & Alice River Main Highway (Tabubil – Mill) SOUTHERN Binge River HIGHLANDS Middle Fly Provincial Road Lake Murray PROVINCE Agu Suki Fly Gogo Proposed Road River Strickland River Dudi - South Bank Major OTML Environmental GULF Boboa Monitoring Stations PROVINCE Manawete - North Bank Manda Kiwaba Sub District MIDDLE L DITRIT Herbert International Border Community Relations/OTDF River Field Base Bosset Massey Bakers Junction A Mine Project Site ETERN PROINE Existing Representative Obo Everill Monitoring Sites Junction BAMU INDONESIA PAPUA NEW GUINEA N I Balimo GOGODALA Fly River Burei River Bituri MOREHEAD River L Tapila OT L DITRIT Morehead KIWAI ORIOMO-BITURI Daru DARU URBAN Cover: Damoi Gatama, Geologist, logging exploration drill-core. ARARA EA SANDAUN PROVINCE NEXT PAGE STAR PREVIOUS PAGE MOUNTAINS Telefomin Oksapmin Tabubil Olsobip Haidauwogam Ok Tedi River OLSOBIP Ningerum KIUNGA NINGERUM RURAL Rumginae NORTH FLY DISTRICT Bige Konkonda Ieran CONTENTS Kiunga Atkamba Highlights 2 Nukumba NOMAD “OK TEDI MINING Company Profile 4 Ioke Nomad River Vision and Values 6 SOUTHERN Binge River Chairman’s Report 8 HIGHLANDS LIMITED HAS Lake Murray PROVINCE Agu Managing Director/Chief Executive Officer’s Report 10 River Strickland River GULF Governance 12 Boboa PROVINCE BEEN MINING Manda Materiality and SDGs 16 MIDDLE FLY DISTRICT Herbert Safety 18 River Bosset Massey Bakers Junction Business Review and Outlook 26 Aiambak COPPER, GOLD WESTERN PROVINCE Geology 32 Obo Everill People 44 Junction BAMU AND SILVER AT Environment 50 INDONESIA PAPUA NEW GUINEA Social Responsibility 60 Nakaku Sturt Island Balimo Finance 70 GOGODALA MT FUBILAN Fly River Burei Financial Statements 77 River MOREHEAD Bituri River Lewada Independent Auditor's Report 79 Tapila SOUTH FLY DISTRICT OPEN PIT General Standard Disclosures 114 Morehead Global Reporting Initiative Verification Statement 118 Appendix A 119 KIWAI OPERATIONS FOR Abbreviations 123 ORIOMO-BITURI Daru DARU URBAN OVER 35 YEARS.“ Contacts and Acknowledgements 124 ARAFURA SEA OK TEDI MINING LIMITED ANNUAL REVIEW 2018 | 1 NEXT PAGE PREVIOUS PAGE CONTENTS OK TEDI MINING HIGHLIGHTS 2018 100% PNG OWNED DONATED PGK 50 M ECONOMIC ENVIRONMENTAL BY THE STATE AND (USD 15 M) TO PNG – CONTRIBUTED 3.1% – MINE WAS COMPLIANT WITH LANDOWNERS EARTHQUAKE RECOVERY OF PNG’S GDP ENVIRONMENTAL CRITERIA – PGK 466 M (USD 141 M) PROFIT AFTER TAX – PGK 100 M (USD 30 M) DIVIDEND PAID – PROVIDED FOREIGN CURRENCY INTO FINALISED OWNERSHIP COMMITTED TO OUR PNG MARKET SAFETY AND TO 33% WESTERN VISION OF “NOBODY OCCUPATIONAL HEALTH PROVINCE ENTITIES GETS HURT” – THE TOTAL RECORDABLE INJURY FREQUENCY RATE WAS 1.48 2 | OK TEDI MINING LIMITED ANNUAL REVIEW 2018 NEXT PAGE PREVIOUS PAGE CONTENTS TO LEARN MORE ABOUT OTML AND THIS ANNUAL REVIEW, VISIT: WWW.OKTEDI.COM OR CONTACT: [email protected] SOCIAL PEOPLE SINCE THE START OF MINING – PROVIDED PGK 17 M FOR OK TEDI – 96% OF THE WORKFORCE IS OPERATIONS IN 1984, OTML DEVELOPMENT FOUNDATION (OTDF) PROGRAMS OF PAPUA NEW GUINEAN ORIGIN HAS PRODUCED: – TOTAL CONTRIBUTION OF PGK 1,713 M – 40% FROM THE WESTERN PROVINCE COPPER 4.83 TO THE PROVINCE AND PNG ECONOMY AND PREFERRED AREA MILLION TONNES – CONTRIBUTED PGK 22.4 M TO TAX CREDIT – 10% FEMALE WORKFORCE SCHEME INFRASTRUCTURE PROJECTS – 1,624 WORKFORCE AT 31 DECEMBER SILVER 32.7 – PROCURED 70% OF THE TOTAL VALUE OF 2018 INCLUDING 126 TRAINEES MILLION OUNCES GOODS AND 40% OF SERVICE CONTRACTS – INVESTED PGK 14 M ON EDUCATION FROM PNG BUSINESSES AND TRAINING OF GRADUATES, GOLD 14.8 – RESPONDED TO 100% OF COMMUNITY APPRENTICES, TRADE TRAINEES AND MILLION OUNCES COMPLAINTS AND GRIEVANCES SCHOOL AND UNIVERSITY SCHOLARSHIPS OK TEDI MINING LIMITED ANNUAL REVIEW 2018 | 3 NEXT PAGE PREVIOUS PAGE CONTENTS COMPANY PROFILE Ok Tedi Mining OTML’s registered office and senior management team are located The Global Reporting Initiative’s (GRI) Standards reporting OTML’s performance data is presented in the metric system. Limited (OTML, or in Tabubil. Support operations are based in Tabubil, Kiunga Port guidelines have been used to guide the disclosure of non- Unless otherwise stated, all monetary amounts are quoted in PGK and Bige. OTML also has a representative office in Port Moresby financial material information. This Annual Review is the first (Papua New Guinea Kina) and/or USD (United States Dollars). the Company) is a and a marketing and logistics office in Brisbane, Australia. report prepared under the new standards. The GRI reporting CHANGES AND/OR RESTATEMENTS has been selectively verified externally by Materiality Counts proudly 100% owned OTML has made a significant contribution to development in FOR THE 2017 ANNUAL REVIEW Pty Ltd and the verification statement is included in this report. the Western Province. Benefits from the mine are directed to Papua New Guinea The United Nations Sustainable Development Goals (SDGs) If erroneous data or information was published in 2017 Western Province communities, specifically the Mine Villages, have been adopted by PNG and in this Annual Review, selected Annual Review, then acknowledgement of the error/s is (PNG) company. Community Mine Continuation Agreement (CMCA) communities, reporting against the material topics and SDGs are introduced. mentioned and rectified in the current Annual Review. The company has the Fly River Provincial Government (FRPG) and the Independent State of PNG. OTML’s future is dependent upon consent from REPORT BOUNDARY In 2017, the Significant Incidents were stated as 10 (p 21) been mining copper, and Significant Injury Frequency Rate (SIFR) was 0.85. The the CMCA communities as well as the Provincial and National This Annual Review relates to the material activities of the Ok gold and silver at correct numbers were 6 and 0.51 respectively. Governments. Success is measured by safety performance, Tedi mining operations comprising the mining and processing Mt Fubilan open pit financial performance, social development programs and the of ore from the Mt Fubilan deposit, the transportation of In 2017, in Social Responsibility (p 72), the Total Dividend paid operations for over management and mitigation of environmental impacts. slurry concentrates to Kiunga and the shipping to the transfer was PGK 380 M (million). The correct number was PGK 377.5 M. vessel in Port Moresby. This report does not cover the copper 35 years in the This 2018 Annual Review presents the integrated financial and non-financial results of the OTML operations. The concentrate product after transfer from the Company’s silo Western Province. financial statements have been prepared in accordance with vessel onto export vessels. the PNG Companies Act of 1997 and these comply with the This Annual Review covers the 2018 calendar year with 2017 International Financial Reporting Standards (IFRS) and other comparatives where available. Historical data can be found on generally accepted PNG accounting practices. External auditor, the Ok Tedi website in previous Annual Reviews. This Annual PriceWaterhouseCoopers (PWC) has verified the financial Review also includes where applicable, forward looking statements and these are included in this report. information for 2019. Image: Peter Poiou, Shift Supervisor Flotation and Nico Kama, Plant Metallurgist Flotation at grinding plant. 4 | OK TEDI MINING LIMITED ANNUAL REVIEW 2018 NEXT PAGE PREVIOUS PAGE CONTENTS “OTML HAS MADE A SIGNIFICANT CONTRIBUTION TO DEVELOPMENT IN THE WESTERN PROVINCE.” OK TEDI MINING LIMITED ANNUAL REVIEW 2018 | 5 NEXT PAGE PREVIOUS PAGE CONTENTS OK TEDI VISION AND VALUES 6 | OK TEDI MINING LIMITED ANNUAL REVIEW 2018 NEXT PAGE PREVIOUS PAGE CONTENTS OTML has been operating successfully in PNG for over 35 years extracting copper, gold and silver from the Mt Fubilan open pit. Our Vision is that “Nobody Gets Hurt”, operating as one integrated team, with a high-performance culture, reflected in everything that we do. The Ok Tedi Values that guide expected behaviours of all people in our Company are: SAFETY, ENVIRONMENT - we care about our employees, business partners and our communities’ well-being and the environment. INTEGRITY – we expect honesty, trust, fairness and respect. ACCOUNTABILITY – we own our jobs, we meet our commitments. PERFORMANCE – we give our best every day and seek to continuously improve. TEAMWORK – our goals are common, our successes shared. SUSTAINABILITY – we use what we need and conserve what we can. Image: Jimmy Mukura, Mechanical Fitter. OK TEDI MINING LIMITED ANNUAL REVIEW 2018 | 7 NEXT PAGE PREVIOUS PAGE CONTENTS CHAIRMAN’S REPORT I am pleased to present Once again Mother Nature reminded us of her presence, with At Ok Tedi we care not just about our results but how they are The Company’s contribution to services and infrastructure our 2018 Annual Report, a major earthquake occurring on 26 February 2018. While its achieved. Our safety vision is “Nobody Gets Hurt” and the development in areas affected by the Mine through its epicentre was in Hela Province, it impacted Ok Tedi by virtue OTML Board remains strongly committed to achieving this community development programs continued during the covering a year in which of a landslip that damaged pipelines and roads and caused a outcome. Overall, we recorded a marginal improvement in year. The Ok Tedi Development Foundation Limited (OTDF), a Ok Tedi faced some three-week production outage. 2018, however this was overshadowed when sadly, on 18 100% subsidiary of OTML, continued as the vehicle to deliver February 2018, an employee of a long-standing business projects and services funded by contributions made by OTML, The Board acted decisively, donating PGK 50 million (USD significant challenges, partner sustained fatal injuries in a motor vehicle incident.
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