The Ok Tedi Mine Case Study - Essay Example

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The mine contributes to approximately 20% of the country’s total export. The Ok Tedi mine contributed over 100 million dollars in taxes, royalties and other state benefits. Most of earnings…
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The Ok Tedi Mine Case Study
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The Ok Tedi Mine Case Study Question One The OK Tedi Mine in Papua New Guinea (PNG) has the biggest reserves of copper globally. The mine contributes to approximately 20% of the country’s total export. The Ok Tedi mine contributed over 100 million dollars in taxes, royalties and other state benefits. Most of earnings are used for the country’s internal development while a section of the earnings is repatriated to the indigenous villages. Roughly the mines contribute about $ 300 million dollars for the growth of infrastructure and towns in collaboration with native community while over $300 million is injected into the economy for products and services. Moreover, the mine contributes to costs such as environmental pollution and degradation of land which is risk for the human and animal population.
Question two
I do think the benefits brought to PNG by the OK Tedi Mine override the costs to the society and environment. This is because the mine is one of the most controversial mining projects where a huge tonnage of wastes are released to the Ok Tedi River which has great effect on the local community living along the river, on the biological structure of the mine and the continuous siltation causes flooding and death of aquatic life (Harding, 1998; p. 308). This is more costly than the benefits.
Question three
The different stakeholders groups include the owners of land around the Ok Tedi River, the government of PNG, employees in the mine, the indigenous people around the area and the firms contracting the mining projects. The contracting firms contributes to employment opportunities for local people hence raising their living standards, the local community contributes to the labor force in the mines while the land owners give up their land for the benefit of the citizens of PNG.
Question Four
There are some critical problems of the EIA process noted in the DVD. The escalating bank flooding and the transformation from the tropical lands to wet lands of which it contributes to more aquatic vegetation in the area which causes loss of arid land for farming along the Ok Tedi River. This limits the diversification of exports and subsistence farming by the indigenous people of PNG hence low living standards.
Question Five
The dual role of the PNG government in the Ok Tedi Mine as both the owner of the mine and the regulator has some specific positive and negative impact. The positive side is that it reduces the3 exploitation of the local employees and subsequent repatriation of profits by the mining company. The negative side is that it limits the standard of investment through excessive regulation. The best way to minimize the negative effects is to privatize the land and the mines to improve on the level of investment into the country and the scope of mineral exploitation and management of wastes. This is because the government might not have enough resources to inject into the mines to manage the wastes and increase the level of exploitation of the minerals. Question six
The implication of minimal consultation with the indigenous community who are potentially affected by the extensive resource development project is that there is a complicated process of following up for compensation. This might create a conflict with the community hence lead to more smuggling of the products that might lead to loss of revenue by the State through the black market.
Harding, R. (1998). Environmental decision-making: the roles of scientists, engineers, and the public. Leichardt, N.S.W., Federation Press. Read More
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