Compensation

Below are estimations of the total compensation payable per person per year under the MCAs. The figures are based on the information contained in Schedules 4 and 5 although some approximation was required.

• Each person in the Lower Ok Tedi region will receive approximately K373 per year.
• Each person in the Highway region will receive approximately K212.70 per year.
• Each person in the Middle Fly region will receive approximately K741.50 per year
• Each person in the North Ok Tedi region will receive approximately K370.20 per year
• Each person in the South Fly region will receive approximately K171.40 per year

The payments are for the length of time the mine continues to operate for any time up until 2010

Schedules 4 and 5 of each Mine Continuation Agreement (MCA) set out the amount of compensation payable over the operating life of the mine.

For each region the compensation scheme varies (see table below).

	Lower Ok Tedi	Highway	Middle Fly	North Ok Tedi	South Fly
Schedule 4 Payments	Future Generations Fund	Investment Fund	Children's Fund	Investment Fund	Investment Fund and Development Fund
Schedule 5 Payments	Development Fund	Development Fund	Development Fund	Development Fund	N/A

The sum of compensation paid under schedule 4 and 5 represents the total compensation payable per region. This figure was divided by 10 (the number of years compensation is paid) to calculate the total compensation payable per year.

Calculating the population of each region was determined by reference to the "1990 National Population Census - Final Figures Census Unit Populations - Western Province" prepared by the National Statistical Office, Port Moresby.

To account for the population increase between 1990 and 2001 the figures have been adjusted by reference to the 'Papua New Guinea Development Report 1998' prepared by the Office of National Planning, Port Moresby. Figure 3.1.2 on p 71 of that report displays an estimate that the total number of persons in the Western Province would increase from 110,420 to 156,100 in 2000. This represents an overall increase of 41% at an annual rate of 4.1%.

Total Compensation Payable per Person per Year

The total compensation payable per year was divided by the estimated number of people in each region to calculate the total compensation payable per person per year. This figure was then divided by 12 to reach a figure representing the total compensation payable per person per month.

See table below for results in each region:

(K)	Lower Ok Tedi	Highway	Middle Fly	North Ok Tedi	South Fly
Compensation per person per year	373	212.7	741.5	370.2	171.4
Compensation per person per month	31.1	17.7	61.8	30.9	14.3

See table below for results in Australian dollars (1K = .55 aud)

(AUD)	Lower Ok Tedi	Highway	Middle Fly	North Ok Tedi	South Fly
Compensation per person per year	205	116	407	203	94
Compensation per person per month	17	10	44	17	8