Ok Tedi Mining Limited (OTML), a key player in the mining industry in Papua New Guinea, has been driving economic growth and providing significant employment for over 40 years. As the company looks to the future, its strategic initiatives for 2025 are focused on sustainability, technological innovation, and community empowerment. These efforts reflect OTML’s commitment to responsible mining practices and its vision for a prosperous future that benefits not only the company but also the local communities and the country as a whole.
Extending the Mine Life
In a landmark move, OTML has extended the life of the Ok Tedi mine to 2050, a decision that promises to deliver substantial economic benefits for decades to come. This extension represents a critical step in ensuring that OTML continues to be a cornerstone of the Papua New Guinea economy, contributing billions of kina in royalties, taxes, and dividends over the next 26 years. The company’s plans to extend the mine life are underpinned by a range of strategic investments aimed at modernising operations and reducing environmental impact.
A key component of this effort is OTML’s focus on sustainability. The company has implemented engineered waste rock dumps (EWRDs) and is constructing a new tailings storage facility (TSF) to ensure that the environmental footprint of the mine is minimised. Additionally, OTML is investing in new technology, including electric-drive haul trucks, to reduce carbon emissions and improve the efficiency of its operations. By extending the mine life and modernising its facilities, OTML is positioning itself as a leader in environmentally responsible mining while ensuring that Papua New Guinea continues to benefit from the revenue generated by the mine.
The Path Toward a “Digital Mine”
OTML is also making significant strides in its digital transformation, with the implementation of its “Digital Mining Vision 2025.” This initiative aims to harness the power of technology to optimise operations, improve decision-making, and increase efficiency across the board. Through a partnership with global IT company Wipro, OTML is integrating advanced digital tools into its mining processes, from data analytics to automated systems that monitor and control equipment in real-time.
One of the core objectives of the Digital Mining Vision is to create a “digital mine” that can adapt to changing market conditions and operational challenges. By adopting technologies such as artificial intelligence, machine learning, and advanced data analytics, OTML is not only improving its productivity but also enhancing safety standards. The digital transformation will enable OTML to track performance metrics more accurately, predict maintenance needs, and optimise resource utilisation—ultimately improving the bottom line.
The move toward a fully digitalised operation is also expected to empower the local workforce. OTML is committed to upskilling its employees to manage and operate the advanced technologies that will become an integral part of the mining process. This investment in workforce development ensures that OTML’s employees are well-equipped to handle the demands of a modernised mining operation.
Prioritising Community Development
A fundamental part of OTML’s strategy is ensuring that its mining operations benefit the local communities that are most impacted by the mine. The company’s commitment to community development is reflected in its ongoing efforts to engage with local landowners and stakeholders, ensuring that they share in the benefits of mining operations.
One of OTML’s major initiatives is the empowerment of Landowner Companies (Lancos), which represent local communities affected by the mining operations. By increasing the percentage of contracts awarded to these companies from 31% to 60% by 2025, OTML is fostering local entrepreneurship and creating a sustainable business ecosystem. This initiative not only provides economic opportunities but also promotes self-sufficiency within local communities.
OTML is also focused on long-term social initiatives that improve the quality of life for local residents. Through the Community Mine Continuation Agreement (CMCA), OTML ensures that mine-affected communities continue to receive benefits, even after the mine ceases operations. These benefits include funding for infrastructure projects, health and education programmes, and support for local businesses. OTML’s investment in social programmes underscores its commitment to creating a positive, lasting legacy in Papua New Guinea.
Balancing Mining with Sustainability
In addition to its economic and community-focused initiatives, OTML has placed a strong emphasis on environmental sustainability. The company has demonstrated a long-standing commitment to environmental stewardship, having exceeded dredging and rehabilitation targets for five consecutive years. This focus on environmental management ensures that OTML is not only meeting regulatory requirements but is also taking proactive steps to restore and preserve the surrounding ecosystem.
OTML’s dedication to environmental conservation is evident in its efforts to protect the biodiversity of the Fly River. Recent projects have focused on rehabilitating river ecosystems that were previously impacted by mining activities, including the rediscovery of certain fish species that had been absent from the river for decades. These projects highlight OTML’s responsibility toward preserving local biodiversity while ensuring that its operations have minimal negative impact on the environment.
The company is also investing in renewable energy solutions as part of its commitment to reducing carbon emissions. As part of its electrification strategy, OTML is moving toward replacing diesel-powered equipment with electric alternatives, which will reduce both operating costs and environmental impact. This shift aligns with global sustainability goals and positions OTML as a leader in green mining practices.
A Strong Financial Future
OTML’s financial performance has been strong, with significant revenue growth in recent years. In 2024, the company reported a 31% increase in revenue, reaching US$1.5 billion, and it is projected to become a US$2 billion revenue company within the next five years. This growth is fuelled by the strategic initiatives the company has undertaken, including the mine life extension, digital transformation, and increased community involvement.
OTML’s financial success is not only a result of its operational excellence but also the responsible way in which it engages with its stakeholders. By prioritising sustainability and community development, the company ensures that the wealth generated by the mine benefits both shareholders and the broader population. In this way, OTML is creating a sustainable financial future that supports its long-term growth and prosperity.
Ok Tedi Mining Limited’s initiatives for 2025 are a clear reflection of its commitment to sustainable mining practices, technological innovation, and community empowerment. By extending the life of the Ok Tedi mine to 2050, embracing digital transformation, and investing in local communities, OTML is setting a new standard for responsible mining in Papua New Guinea and beyond. As the company moves forward with its ambitious plans, it is not only ensuring its own success but also contributing to the long-term prosperity of the nation. With its strategic vision, OTML is poised to continue its legacy as a leader in the mining industry while maintaining a strong focus on environmental stewardship and social responsibility.