Statement re Ok Tedi Mine

BROKEN HILL PROPRIETARY COMPANY LIMITED
11 August 1999
        

                        BHP AND OK TEDI

The Broken Hill Proprietary Company Limited (BHP) said today it would consult
a range of interested parties before making any decisions about the future of
its 52 per cent interest in the Ok Tedi copper mine in Papua New Guinea.

The Company said consideration of its future involvement with the Ok Tedi mine
would be based on open consultation and finding a balance between social,
environmental and economic objectives.

Scientific reports, released by Ok Tedi Mining Limited (OTML) today, confirm
that the environmental impact of the mine and the area of land affected would
be significantly greater than indicated by previous studies.

The reports also show that none of the waste management options considered by
OTML offer a clear solution to these environmental impacts.

Social and economic research has underlined the importance of the mine to its
local communities as well as the Western Province and the PNG economy.  Ok
Tedi represents 20 per cent of PNG's export income.

BHP Managing Director and CEO, Mr Paul Anderson, said the reports, considered
as a whole, illustrate the difficulty of finding a way forward for the mine.
'There are no easy answers offered by these reports for BHP, the other
shareholders in the project or for PNG. But we are determined to find the best
answer.'

'Having considered the environmental and social reports, we feel the
responsible course of action is for the mine to continue to operate while the
PNG Government, shareholders and local communities decide on the longer term
future for the mine.

'Obviously, the PNG Government and the local communities will need to find
how to best balance their short term and long term interests with the
environmental impact of the mine. The future of the mine is ultimately their
decision.'

'The PNG Government and local communities have so far indicated that they do
not want the mine to close.

'From BHP's perspective as a shareholder, the easy conclusion to reach, with
the benefit of these reports and 20/20 hindsight, is that the mine is not
compatible with our environmental values and the Company should never have
become involved.'

'That is the easy conclusion.  The difficult issue we face is where to go
from here. More than 50 000 people depend on the economic activity the mine
generates.

'BHP will need to decide what its future involvement with the mine should be.
In doing so, and recognising that OTML will be consulting local communities
and affected landowners, BHP will seek the views of the PNG Government, the
Australian Government, the World Bank and non-government organisations.'

                            
                        * * * * *
                            
For information contact: Mandy Frostick
                         Manager Media Relations - Melbourne
                         Tel: [phone] (bh)
                              [phone] (ah)
                              [phone] (mobile)
                              
                              
                   OK TEDI MINING LIMITED
                              
                        MEDIA RELEASE
                              
                              

Wednesday 11 August 1999

                              
     OTML RELEASES ENVIRONMENTAL IMPACT OPTIONS REPORTS


Ok  Tedi Mining Limited today released full details  of  its
investigations into options for mitigating the environmental
impact of the Ok Tedi mine in Western Province, PNG.

A  workshop  in Port Moresby to discuss the risk assessments
and  scientific  reports was attended by representatives  of
NGOs, churches, landowners and government.

The  company  announced  in  June that  preliminary  studies
showed  that the environmental effects of the mine would  be
far greater and more damaging than predicted.

OTML said that the dieback of vegetation associated with the
mine's tailings problems could cover up to 1350 sq kms along
the Ok Tedi and Fly River.

The  reports  released today verify the earlier announcement
that  none  of  the  four  options studied  showed  a  clear
solution  to  the  mine  waste issue that  was  causing  the
environmental damage. The four options were: to continue the
current  dredging trial in the lower Ok Tedi; to dredge  and
pipe the tailings to a formed storage area; do neither,  and
close the mine early.

OTML  managing  director, Dr. Roger Higgins, said  that  the
engineering  and scientific reports released today  provided
OTML  with  a  far better understanding of the environmental
issues associated with copper mining at Ok Tedi.

'We  believe this is the best advice available, and this has
been borne out by a review of the scientific credibility  of
the  reports  by  an international expert  panel,  the  Peer
Review Group,' he said.

'What  the  reports, which included studies  on  the  social
implications, tell us is that we are facing a complex  issue
with  social  and  economic components, in addition  to  the
environmental impacts,'' he said.

'We  have  also  had  the  overall  risk  assessment,  which
combines  environmental and social  issues,  audited  by  an
independent specialist.'

Dr.  Higgins  said  that  OTML was releasing  the  documents
because  it  wanted to have as broad a base  for  debate  as
possible before a decision is made as to how to respond.

'We  have  already  embarked  on a  comprehensive  community
consultation  program to make sure the  people  whose  lives
have  been changed by the mine, and will be changed  by  the
environmental impact, make their views known to us  and  the
PNG Government.

'Ultimately,  it is the villagers along the  affected  river
systems  and  the PNG Government as environmental  regulator
who  must  decide  the  best way forward.  The  consultation
process will help them make that decision.'

The PNG Government has commissioned an independent review of
the Ok Tedi studies, which will advise the Government as  to
how  it  might  respond. The PNG Government has  been  fully
briefed by OTML on the detail of the reports.

OTML  has  three  shareholders: BHP owns 52  per  cent,  PNG
Government, 30 per cent, and Canadian mining company,  Inmet
Mining Corporation, 18 per cent.

Dr.  Higgins said that, of the PNG Government's 30 per  cent
share,  2.5  per  cent  is  held  on  behalf  of  mine  area
landowners,  and 12.5 per cent on behalf of  the  people  of
Western Province.

'Irrespective  of what decision is made in response  to  the
reports,  OTML  has a fundamental obligation to  the  people
affected by the mine. We will be working with them to find a
way to respond to their needs and secure their future.

'The reality is that Ok Tedi mine contributes 20 per cent of
PNG's  exports,  and  ten per cent  of  its  gross  domestic
product.  The  mine  is  intricately  bound  up  with  PNG's
economic future.

'In  the  Western Province and the immediate mine area,  the
importance of the mine is much greater, providing employment
and  social  infrastructure as well as  direct  income  from
royalties and business opportunities.

'The environmental, economic and social aspects of Ok Tedi's
operations  demand  the consideration of wide-ranging  views
from many stakeholders,'  Dr. Higgins said.

The OTML board will decide how OTML will proceed in November
when  it  has  consulted widely and the PNG  Government  has
formed its own response.


More information:


Dr Roger Higgins: [phone]
Managing Director
Ok Tedi Mining Limited