Construction is well under way on Ok Tedi Mining Ltd.'s gold-copper open pit development in Papua New Guinea. Start up is scheduled for mid-1984 at 15,000 tonnes of gold ore per day, expanding to 45,000 tonnes of copper ore per day by 1989.

Dramatic price increases for gold, at the time the feasibility study was submitted to the government in November 1979, heightened national expectations and led to further studies to satisfy government requirements, prior to formal agreement to proceed, reached in February 1981.

Difficulties encountered in implementing the project, so far, are due to various factors including lengthy financing negotiations, lease of tribal lands, community demands, normal bureaucratic delays, separated national and provincial administrations, and the State's position as regulator and shareholder.

The real challenge, however, is physical--remote location, rugged terrain, heavy rainfall, and jungle wilderness. In return, an enlightened agreement between state and company promises adequate returns to both developer and the people of Papua New Guinea.

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