Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

UPDATE 2-Papua New Guinea's Ok Tedi copper mine suspends operations over COVID-19

Published 18/03/2021, 04:29 pm
Updated 18/03/2021, 05:42 pm

* Ok Tedi copper mine expects loss of $59 mln revenue

* Exxon says PNG LNG operations normal

* Newcrest Lihir gold mine operations unaffected

* Fly-in fly-out workers face Australia suspension (Adds Exxon, Oil Search, Newcrest, St Barbara comments and latest PNG coronavirus case numbers)

By Sonali Paul

MELBOURNE, March 18 (Reuters) - Papua New Guinea's Ok Tedi Mining Ltd will suspend copper mining for two weeks from Friday because of a steep rise in coronavirus infections in the South Pacific nation, including the mine site.

Ok Tedi Acting Managing Director Kedi Ilimbit said operations would be suspended for 14 days to stop further transmission of COVID-19 within its mining operations.

State-owned Ok Tedi said the shutdown would cost about 210 million kinas ($59 million) of revenue, directly hitting foreign currency inflows to the country as it battles an economic slump.

The Australian government this week suspended travel exemptions which had allowed fly-in-fly-out (FIFO) mining and energy workers to travel between the two countries. Five people who travelled from Ok Tedi to Queensland earlier this month were diagnosed with COVID-19.

The PNG government reported five deaths and 128 new cases on Tuesday, taking total cases to 2,479 and the death toll to 31. Health experts believe the official data likely significantly underreports case numbers.

The Western Province, where Ok Tedi is located, has the second highest number of confirmed cases at 324, after Port Moresby, the capital.

Operations at the biggest resources project in the country, Exxon Mobil Corp (NYSE:XOM)'s XOM.N PNG LNG, are continuing as normal, an Exxon Mobil spokesman said.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

"We have established processes in place to manage impacts from infections disease outbreaks," the spokesman said by email.

Newcrest Mining NCM.AX said output at its Lihir Gold mine has been unaffected so far.

Newcrest and oil and gas producer Oil Search OSH.AX said they were seeking clarification on Australia's travel ban for FIFO staff.

St Barbara SBM.AX said it was limiting movement of people to and from its Simberi gold mine, on an island 900 kilometres (560 miles) away from Port Moresby, after detecting a small number of COVID-19 cases in its quarantine program.

($1=3.5714 kinas)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.