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Adani Mining’s Jeyakumar Janakaraj • CMC Markets’ Matthew Lewis • Airservices Australia’s Margaret Staib CONSCIOUS MINING

Operating out of ’s Western Province, Ok Tedi Mining Limited is a vital element of the local community and is working towards more environmentally sustainable development.

Images courtesy of Ok Tedi Mining Limited

igel Parker, CEO of that I think has some issues with What advice would you offer Ok Tedi Mining the old Australian culture still expats looking at positions Limited, has more overlaying its age-old cultures. in PNG? than 30 years of You’ve got a falling away of the old experience in the Australian education system after First-time expats find it the most Nresources sector. He has spent 16 the past 39 years, which the difficult. When we recruit expats, years in management roles for current Prime Minister is trying to married couples, the husband gets BHP Steel and Bluescope Steel, rectify. You’ve got administrative involved in his work, and it’s working in the US, Sri Lanka, structures, like Australian-style challenging work in the mining Thailand, China, Papua New municipal councils that don’t environment but very rewarding Guinea, and Australia. work in PNG. work for young guys. It’s the wife that’s usually the issue we have to The CEO Magazine caught up with A strong hope that I have is that deal with, and in the final Nigel to look at the challenges and PNG can start to work its way interview we always bring the wife triumphs of Ok Tedi, at the history through government and to site. We take feedback from the of the mine, and the environmental administrative-type areas in expat wives because the success of issues that have arisen in its past. particular to develop more the executive is highly dependent appropriate governance models on the success of his wife and The CEO Magazine: Can you that are more aligned to their own fitting into the community. highlight some of the challenges cultures. The issue with expats is that come from working in that that we’re not born into those In terms of advice, PNG is Papua New Guinea? cultures, so although you become very Australian in the sense that reasonably aligned to the cultural Australia was very much a part of Nigel: Papua New Guinea is an thinking and the cultural ways, not PNG pre-independence and there emerging nation, 39 years as an being born into those cultures still is a very close relationship with independent nation with all those means you’ll never be able to Australia, so you’re not jumping learning experiences. It’s a nation understand the subtleties. into something totally different to

theceomagazine.com.au The CEO Magazine - December 2014 131. what you’re used to. itself is lighting, the sewerage systems. It’s a big country town, like an all Ok Tedi’s; we own it, we Australian country town. It’s very manage it, and we run it as a safe and secure, but you can’t just special mining lease. jump in a car and go down to the shopping mall, so you’ve got to be Even though we discharge our prepared to make your home there. in the river system, we use The best advice is: if you do take a the river to transport the tailings role like this, accept that it’s career about 100 kilometres to a place advancement, it’s well-paid work, called Bige where we actually but you’ve got to relax into the dredge 80–85 per cent of the culture, both the Papuan New sediment from the river and we Guinean culture and the expat deposit that into land-based culture, and just take it easy. tailings-storage facilities. So we do have a tailings-storage facility; the How has Ok Tedi Mining problem is that we use the river to Limited become part of the transport the tailings and about community in which it operates? 10–15 per cent of the fines get through into the river system and The managing director has, for continue down the river. So BHP many years, fondly been referred to looked at every opportunity to as the governor of the Western mitigate the environmental Province. Last year, I was down in damage in the late 1990s and we an area called Aimbak where the set up the dredging operation, current governor, Ati Wobiro, and which costs us $50–60 million a his wife and my wife were to year to continue dredging, so it’s launch the rehabilitation of a road been very successful. from Aimbak to Lake Murray. The local chiefs were up there and Subsequently, we put in a sulphur- welcomed the governor and myself extraction plant where we send as the former governor. “Mr Parker,” they said, “now that we have a real Inmet had 18 per cent. This was “In the 10 years Limited, which would hold BHP’s governor, you’re no longer the up until January 2002, when BHP until 31 52 per cent interest for the benefit governor of the Western Province, elected to withdraw from the mine. of PNG. So that structure was put but we will make you prime BHP were concerned because Ok December in place, and in January 2011, we minister to support the governor.” Tedi was a riverine discharge mine 2012, we paid bought Inmet out as a share where we discharge our mine buyback arrangement, and from I think that’s indicative of the waste and tailings into the river slightly over then on the company was fully capital I’ve built up with their system, and that has been the US$4 billion in owned for the benefit of PNG, Avenell engineering Systems ltd. communities because it’s a bigger cause of all the environmental dividends. both through the government’s Operating in Papua New Guinea for over 16 years with management having over role than mayor, since Ok Tedi controversy that has surrounded direct shareholding and the PNG 60 years’ collective experience. AES specialises in providing civil and construction touches every part of the Western Ok Tedi. In the late 1990s, they No-one in their Sustainable Development Program. services from design through to completion on time and within budget. WE ARE: Province of PNG. It provides were very concerned because of wildest dreams compensation to the communities, these environmental movements In the 10 years until 31 December  Remote Site Specialist  Earth Moving and Haulage and it supports Medevac and throughout the world. BHP, being thought the 2012, we paid slightly over US$4  Site Clearing and Preparation  Road Construction school development programs. very responsible for its own affairs, company would billion in dividends. No-one in  Quarry Operation  Pre-Cast Structure There is an extraordinary impact got to the point where they their wildest dreams thought the   that we do have, and we continue questioned the continuance of be in a position company would be in a position to ravuvu industrial Business Park Mobile Concrete Batching Modular Camps and Housing   to build very positively through the mine because of the to pay that kind pay that kind of money. That’s all is a 72ha development between Port Remote Site Logistics Plant Hire the Ok Tedi Development environmental issues and the internally generated funds; to this Moresby and Exxon Mobil’s LNG site.  Project Management  Geo Technical Services Foundation and through some of damage to the river system. of money.” day, the company does not have Designed to cater for clients wishing  Drafting Design the marvellous and extraordinary - Nigel Parker any balance sheet debt, we don’t to establish a strategic operational work done under the leadership of BHP actually wanted to close lease any equipment, and we don’t base with the added convenience of Ian Middleton, the CEO. the mine, but the state of PNG hedge our product. We’re self- our privately owned port and container couldn’t agree to that because it generating without any support terminal located on Fairfax Harbour, Can you give our readers an formed such an extraordinary whatsoever. So the company has port facilities include a fully integrated overview of Ok Tedi’s history part of the PNG economy. So a done extraordinarily well. handling service and transport link, and the environmental issues deal was done between BHP ideal for efficient project logistics that have surrounded the mine? and the government where BHP Tabubil is the mining town that is and shore-base operations. Ravuvu would vest its interest into a Ok Tedi’s mining town, and creates a unique business platform to BHP originally had 52 per cent of special-purpose vehicle that was everything you see there is pretty access broader Papua New Guinea. the resource, the PNG government established in Singapore, the PNG much owned by Ok Tedi: the Other facilities include industrial had 30, and the Canadian company Sustainable Development Program internal roads, the footpaths, the warehousing and yard storage, camp Avenell engineering SyStemS, ltD. accommodation and serviced housing,  restaurant, bar, recreational facilities, PO Box 76 Konedobu, National Capital District, Papua New Guinea WEB: www.aespng.com  132. The CEO Magazine - December 2014 theceomagazine.com.au broadband service and 24 hr security. PHONE: +675 7244 7240 / +675 71908969 / +675 76234408 EMAIL: [email protected] reported under G4. It’s all about companies are picking up on it. our social responsibility, and So we are now reporting our that links into the Ok Tedi programs: our environmental Development Foundation. programs, our community benefit programs. And at Ok The Ok Tedi Development Tedi, we have our own community Foundation came about through relations department, and our the BHP exit; it was formed under subsidiary, Ok Tedi Development legislation, so zero rate of income Foundation, is a separate legal tax. Its design under the BHP exit entity that actually focuses on the was to be the implementing part community programs themselves. of the PNG Sustainable Development Program, so it What management philosophy implements control programs drives your approach directly for the communities. The to business? communities use that now for their own projects as well, to You hear the phrase ‘leading edge’ actually manage and implement all the time, but I’m looking for “That’s fine. It’s going to happen that. When it was put together the ‘next edge’. The leading edge anyway because we’re selling back in 2001–2002, it was leading is behind us because people are products into the market. What edge because out of it came achieving leading edge. In we’ve got to be doing is looking things like the financial assurance management thinking, you’ve got for that next edge.” fund for mine closure, the Ok to think of the next edge that is Tedi Development Foundation, going to give you a competitive It’s interesting that the US is and a rewards–benefit system. advantage. This started to form in where all the thinking innovation my mind when I was in China comes from, so mind power is the An extraordinary amount of with BHP. Everyone was so US’s competitive edge. In Australia, those tailings to Bige by pipelines forethought went into BHP’s exit nervous about the Chinese unfortunately, successive and we bury those. In program, which we still benefit acquiring the technology and governments have destroyed this management’s view, we should be from today, and other mining creativity. I sat back and thought, notion. When I was a boy, we lived looking at a closer-to-mine tailings facility so that we don’t actually use the river at all. So we have pre-feasibility studies underway to look at a tailings facility much close to the mine, which would then permit us to pipe all the Markham Culverts is the leading manufacturer and supplier to the civil engineering community tailings into a land-based tailings of Papua New Guinea. Proud to be Papua New Guinea’s sole importer and distributor. facility and do away with depositing into the river system. We pride ourselves on our commitment to the health and welfare of employees both at work How does your company adopt a and outside of work hours. We focus on assisting our customers with their engineering design scientific approach to environmental consciousness? though in-house registered engineering staff with extensive international back up.

We have a very large scientific convert it to mulch. At the Ok What role does corporate social department led by Dr Michael Tedi Development Foundation, we responsibility play in your Ridd. They’re kind of the unsung now take all the mess cooking oil company’s operations? HELPING CIVIL ENGINEERS TO BUILD A BETTER PNG heroes in our business. I have a and covert that into soap, which personal program to identify all of we give out to the communities. We’ve very much embraced our unsung heroes in the business, The big innovative program that corporate social responsibility, Maccaferri NZ: geosynthetics sub-soil drainage and Gabion wire product. and the environmental department we did commission late last year more so in the past four years www.maccaferri.co.nz is one of those. They have an was our rubber tyre recycling when the concept of social extraordinary amount of data and plant where we have 35 years responsibility has been recognised Ingal Civil Products: highway and road safety systems. very committed scientists. They of waste tyres, which are an and known through developed have a licence to look at innovative environmental issue because they nations. We now openly use that www.ingalcivil.com.au ways to address our environmental don’t degrade. So the plant breaks terminology and we actually are Atlantic Civil Products: mining and access solutions, bridging and drainage systems. issues. That’s not just the tails out those down into rubber crumb. reporting. In 2011, we started of the river; it’s our environmental We take the metal and the fibre to report along the line of www.atlanticcivil.com.au issues right across the board. out, and we sell the rubber crumb corporate social responsibility and into Australia. And that’s a IFC principles. In 2011–2012, we Eastbridge Bridging: any size, any type, anywhere. At Bige, for instance, they take all world-first initiative for the focused on the G3 principles, and www.eastbridge.co.nz of the mess waste and they mining industry. in 2013 our annual report was www.markham.com.pg 134. The CEO Magazine - December 2014 theceomagazine.com.au ADVERTORIAL Taking Care of Business Mineral Resources Star Mountains ensures that projects in Papua New Guinea run smoothly and takes care of all involved parties.

• Highway Transport Limited: Mineral Resources Star Mountains Providing services under enables us to tap into a well- contract to OTML and other established group of companies companies in the Western operating in the transport, security, Province and Port Moresby and engineering industries. off the sheep’s back. Successive “It is the 2010. The mine, as BHP has left it understand what their issues are governments, through free trade, board’s and now, is scheduled in for 2015 when with that, which has a cost of • Fubilan Security Services: With a history of managing a have destroyed agriculture to the we’ve depleted the ore in the pit $300 million over 10 years. Providing security services for major catering operation in one of point where you can only have management’s shell. There is still a lot more ore Management’s position is very the group, plus other entities in the most remote locations on massive combined farming on obligation to there, and we put a proposition to firm with this aspect: we are town and province. earth, we directly understand the grand scales. We’ve destroyed government in November 2012 that vehemently of the view that in importance of continuous and manufacturing in this country. look at every we should continue the mine for at contemporary mining, it is the • Fubilan Catering Services: The quality support services Dick Smith said to me once, “AWA opportunity to least another 10 years. That project board’s and management’s first and only catering company went broke because it was too has now been approved. obligation to look at every operating anywhere in Papua Our community partnerships, slow moving into China.” mitigate not opportunity to mitigate not only New Guinean with ISO 22000 logistics and supply networks, and only our current There are three issues with Ok our current operations and going and ISO 9001:2008 Certification. quality control approach have I’ve lived in China and the US, operations and Tedi—the pit shell, the theoretical forward, but to mitigate the ineral Resources been carefully developed and two of the most protective design, and shape of the hole in the legacies of our past in regard to Star Mountains For 14 years, FCS have stood as a nurtured over time to form the countries in the world. When I going forward, mountain—and we are licensed our environmental issues, which (MRSM) major contractor to Ok Tedi backbone of our success. More lived in the US 20-odd years but to mitigate under a pit shell to mine within. are our mining practices of represents the Mining Limited (OTML). We are than 200 employees proudly strive ago, we had three or four people Then we’re licensed to dump our dumping waste and tailings into economic and now poised to offer our expert to exceed our high standards, and whose only job was to monitor the legacies of mine waste and tails into the river the river system. Msocial interests of the Ok Tedi services to new clients anywhere in reliably deliver our services to our importing cost of steel our past in system. Under mine continuation, Mine Landowner Groups (10 PNG or beyond. ISO 22000 standards a first in because of US anti-dumping we’ve addressed two issues. First We believe that if we can find mine villages) located at Tabubil, PNG for any company, and one laws. Here in Australia, we have regard to our off, we had to widen the pit shell to solutions to both of those, then the along the Star Mountains and Fly We seek to collaborate with clients for which we the company, all this free trade, where all the environmental access the ore that’s in the bottom. river will start to recover very River Basin, in the North Fly who share our vision for safe and employees and its shareholders orange juice you buy out of There are 400 million tonnes of quickly. The Ok Tedi, Ok Mani, District of the Western Province of superior facilities support, to are so truly proud. supermarkets comes from South issues.” waste on top of that ore, and we and the systems are very PNG, it was established through deliver a first class remote lifestyle. America. Australia, in my opinion, - Nigel Parker wanted to be licensed to change powerful water bodies, and if we the Mineral Resources Our experienced management has to look to its own and protect from putting that into the river cease the dumping of waste into Development Corporation We have successfully adopted team is equipped with a balanced its own. system to putting that into a stable those river systems, even though ‘MRDC’ in 1997. OTML’s global standards, and blend of in-depth PNG and waste dump. The government has those waste dumps will erode in provide more than 7,000 meals daily international experience. The team Can you tell our readers about approved the widening of the pit 100–150 years, we believe that the MRSM has grown its business across its Western Province Mining drives strong client relationships, Ok Tedi’s Mine Life Extension shell, but the Department of commencement of the recovery arm of the company to Township and charter flight and a comprehensive management project and what the Environment wants more work will start very quickly, and we can participate in various spin-offs operations. We also manage OTML’s framework, to position FCS as a future holds? done on the stable waste dump. show and prove that this actually on a self-managed basis via the leisure clubs, and provide support leading facilities management does happen. following companies: to many associated contractors. provider. We may not be the When I first joined eight years ago, We are very confident that we biggest, however we pride Ok Tedi’s mine life was to finish in will be able to construct it; we’ve So we still have some work to do • Tabubil Engineering Limited: Our fully integrated and flexible ourselves at being the best. We had three independent to bring them on board with Fabrication, civil, carpentry, facilities management service don’t set the standard, we have to international groups look at it, constructing a stable waste dump, and construction, it boasts the provides catering, cleaning, achieve it. Let the ISO 22000 “PNG is a challenging environment to do business, however working in with no fatal flaws. We’re still but are adamant that it is the right largest and best equipped accommodation and maintenance certification speak for itself. partnership with OTML, another industry leader, hurdles are easily overcome without compromise or a drop in standards.” - Paul A. Povey, trying to work with the way to go and we will continue to engineering workshops in the support at a highly competitive cost. Group General Manager, MRSM Group of Companies Department of Environment to pursue that very professionally. Western Province. Our position as a subsidiary of All enquiries to: [email protected]

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