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NEXT PAGE OK TEDI MINING LIMITED ANNUAL REVIEW 2019 SANDAUN PROVINCE NEXT PAGE PREVIOUS PAGE STAR MOUNTAINS Telefomin Oksapmin Tabubil Olsobip Haidauwogam Ok Tedi River OLSOBIP Ningerum KIUNGA NINGERUM RURAL Rumginae NORTH FLY DISTRICT REGIONAL MAP Bige Konkonda Ieran Kiunga Atkamba Nukumba NOMAD Ioke Nomad River Region Map Key SOUTHERN Mine Area Manawete - North Bank Provincial Road Binge River HIGHLANDS Lake Murray PROVINCE Agu River Nupmo Kiwaba Proposed Road Strickland River GULF Major OTML Environmental Boboa Tutuwe International Border PROVINCE Monitoring Stations Manda Wai-Tri & Alice River Provincial Border Sub District MIDDLE FLY DISTRICT Herbert Community Relations/OTDF River Middle Fly District Boundary Bosset Massey Bakers Field Base Junction Aiambak Suki Fly Gogo Local Level WESTERN PROVINCE Government Boundary Mine Project Site Dudi - South Bank Main Highway (Tabubil – Mill) Existing Representative Obo Everill Monitoring Sites Junction BAMU INDONESIA PAPUA NEW GUINEA Nakaku Sturt Island Balimo GOGODALA Fly River Burei River Bituri MOREHEAD River Lewada Tapila SOUTH FLY DISTRICT Morehead KIWAI ORIOMO-BITURI Daru DARU URBAN Cover image: Inside Ok Tedi’s major primary crusher replacement project. ARAFURA SEA SANDAUNSANDAUN PROVINCE PROVINCE NEXT PAGE PREVIOUS PAGE STARSTAR MOUNTAINS MOUNTAINS TelefominTelefomin OksapminOksapmin TabubilTabubil OlsobipOlsobip HaidauwogamHaidauwogam OkOk Tedi Tedi River River OLSOBIPOLSOBIP NingerumNingerum KIUNGAKIUNGA NINGERUMNINGERUM RURALRURAL RumginaeRumginae NORTHNORTH FLY FLY DISTRICT DISTRICT CONTENTS BigeBige KonkondaKonkonda IeranIeran KiungaKiunga AtkambaAtkamba Highlights NukumbaNukumba NOMADNOMAD Company Profile IokeIoke NomadNomad RiverRiver Vision and Values Chairman’s Report SOUTHERNSOUTHERN BingeBinge River River HIGHLANDSHIGHLANDS Managing Director/Chief Executive Officer’s Report LakeLake Murray Murray PROVINCEPROVINCE AguAgu RiverRiver Governance StricklandStrickland "THE COMPANY MADE SIGNIFICANT River River GULFGULF BoboaBoboa Materiality and SDGs PROVINCEPROVINCE PROGRESS ADVANCING ITS MAJOR Safety MandaManda MIDDLEMIDDLE FLY FLY DISTRICT DISTRICT HerbertHerbert Business Review and Outlook RiverRiver BossetBosset MasseyMassey Bakers Bakers GROWTH PROJECT AND IS WELL Geology Junction Junction AiambakAiambak WESTERNWESTERN PROVINCEPROVINCE People POSITIONED FOR A STRONG FUTURE." Environment OboObo EverillEverill Junction Junction BAMUBAMU Social Responsibility INDONESIA INDONESIA Finance PAPUA NEW GUINEA PAPUA NEW GUINEA NakakuNakaku Abbreviations SturtSturt Island Island BalimoBalimo GOGODALAGOGODALA Contacts and Acknowledgements FlyFly River River BureiBurei River River BituriBituri MOREHEADMOREHEAD River River LewadaLewada TapilaTapila SOUTHSOUTH FLY FLY DISTRICT DISTRICT MoreheadMorehead KIWAIKIWAI ORIOMO-BITURIORIOMO-BITURI DaruDaru DARUDARU URBAN URBAN ARAFURAARAFURA SEA SEA OK TEDI MINING LIMITED ANNUAL REVIEW 2019 | 1 NEXT PAGE PREVIOUS PAGE CONTENTS 2019 HIGHLIGHTS ECONOMIC PEOPLE SOCIAL – PGK 754 M (USD 222 M) profit after tax – Workforce of 1,747 including 138 trainees – Total awarded contracts to PNG companies PGK 1,429 M – PGK 400 M (USD 118 M) dividend paid – 96% of the workforce is of Papua New Guinean origin – Procured 71% of the total value of goods and – Contributed 4.1% of PNG’s GDP – 39% from the Western Province and Preferred Area 48% of service contracts from PNG businesses – Provided foreign currency into PNG market – 11% female workforce – Contributed PGK 26.7 M to Tax Credit Scheme – Invested PGK 15.7 M on education and training of infrastructure projects graduates, apprentices, trade trainees, school and university scholarships – Responded to 100% of community complaints ENVIRONMENTAL and grievances – Compliant with environmental criteria – Environmental mitigation costs were PGK 239 million SAFETY AND OCCUPATIONAL HEALTH To learn more about OTML and this annual – The Total Recordable Injury Frequency Rate was 1.08 review, visit: www.oktedi.com or contact: – Crusher Replacement Project worked 469 days LTI free [email protected] 2 | OK TEDI MINING LIMITED ANNUAL REVIEW 2019 NEXT PAGE PREVIOUS PAGE CONTENTS PRODUCED SINCE START OF OPERATIONS IN 1984: MILLION COPPER 4.93 TONNES MILLION SILVER 34.2 OUNCES MILLION GOLD 15.1 OUNCES NEXT PAGE PREVIOUS PAGE CONTENTS COMPANY PROFILE Ok Tedi Mining OTML’s registered office and senior management team are located Report Boundary Changes and/or Restatements Limited (OTML, or in Tabubil. Support operations are based in Tabubil, Kiunga Port This Annual Review relates to the material activities of the Ok for the 2019 Annual Review and Bige. OTML also has a representative office in Port Moresby the Company) is Tedi mining operations comprising the mining and processing and a marketing logistics office in Brisbane, Australia. If erroneous data or information was published in 2018 a proudly 100% of ore from the Mt Fubilan deposit, the transportation of Annual Review, then acknowledgement of the error/s is owned Papua Benefits from the mine are directed to Western Province slurry concentrates to Kiunga and the shipping to the transfer mentioned and rectified in the current Annual Review. New Guinea (PNG) communities, specifically the Mine Villages, Community vessel in Port Moresby. This report does not cover the copper The appointment dates of some Board members were company operating Mine Continuation Agreement (CMCA) communities, the Fly concentrate product after transfer from the Company’s silo incorrectly reported in the 2018 Annual Review as follows: in a remote area of River Provincial Government (FRPG) and the Independent vessel onto export vessels. State of PNG. Success is measured by safety performance, Western Province. This Annual Review covers the 2019 calendar year with 2018 Sir Moi Avei, KBE, Chairman, Dr Roger Higgins, Director and financial performance, social development indicators and the The company has comparatives where available and also includes forward Mr Glen Kuri, Director, were appointed on the 4th November management and mitigation of environmental impacts. 2014 and re-appointed for a further three year term on the been mining copper, looking information for 2020. Historical data can be found on 1st November 2017; and gold and silver at This 2019 Annual Review presents the integrated financial the Ok Tedi website in previous Annual Reviews. and non-financial results of the OTML operations. The Mt Fubilan open pit OTML’s performance data is presented in the metric system. Mr Peter Graham, CBE, CEO & MD, was appointed on the 16th financial statements have been prepared in accordance with Unless otherwise stated, all monetary amounts are quoted March 2015 and re-appointed for a further three year term on operations for over the PNG Companies Act of 1997 and these comply with the in PGK (Papua New Guinea Kina) and/or USD (United the 1st November 2017. 36 years. International Financial Reporting Standards (IFRS) and other States Dollars). generally accepted PNG accounting practices. External auditor, The total compensation payment was erroneously reported PriceWaterhouseCoopers (PWC) has verified the financial The 2019 Annual Review has been split into two volumes, in the Environment chapter on pages 58 and 59 as statements and these are included in this report. Annual Review and Financial Review including financial PGK 56.1 million. The correct amount is PGK 44.0 million. statements, assurance and GRI reporting. Both e-copies are The Global Reporting Initiative’s (GRI) Standards guidelines available on the website and printed copies are available have been used to guide the disclosure of non-financial from OTML. material information. The GRI reporting has been selectively verified externally by Materiality Counts Pty Ltd and the verification statement is included in this report. The United Nations Sustainable Development Goals (SDGs) have been adopted by PNG, and in this Annual Review, selected reporting is presented against the material aspects and selected SDGs. Image (right): Florentina Masi, Luke Cerny and Jamies Ehava, Mine technical team reviewing weekly plans. 4 | OK TEDI MINING LIMITED ANNUAL REVIEW 2019 NEXT PAGE PREVIOUS PAGE CONTENTS OTML IS A LOW COST COPPER PRODUCER CREATING VALUE FOR PNG. NEXT PAGE PREVIOUS PAGE CONTENTS OK TEDI VISION AND VALUES 6 | OK TEDI MINING LIMITED ANNUAL REVIEW 2019 NEXT PAGE PREVIOUS PAGE CONTENTS THE OK TEDI VALUES THAT GUIDE EXPECTED BEHAVIOURS OTML has been operating successfully in PNG for OF ALL PEOPLE IN OUR COMPANY ARE: over 36 years extracting copper, gold and silver SAFETY, ENVIRONMENT - we care about our employees, from the Mt Fubilan open pit. business partners and our communities’ well-being. INTEGRITY – we expect honesty, trust, fairness and respect. ACCOUNTABILITY Our Vision is that “Nobody gets hurt, operating – we own our jobs, we meet our commitments. PERFORMANCE – we give our best every day and seek to as one integrated team from Pit to Port; a high- continuously improve. TEAMWORK performance organisation with employees proud – our goals are common, our successes shared. SUSTAINABILITY – we use what we need and conserve what we can. to be part of a successful PNG-owned company”. Image: Loyolla Yakuma, Processing team graduate. OK TEDI MINING LIMITED ANNUAL REVIEW 2019 | 7 NEXT PAGE PREVIOUS PAGE CONTENTS CHAIRMAN’S REPORT I am pleased to The profit enabled the Board to distribute PGK 400 million During the year we continued to enjoy support from our During 2019, the composition of the Board remained