The World Bank was asked by the Papua New Guinea Prime Minister to review BHP and Ok Tedi Mining's (OTML) mine damage assessment.
The World Bank review was leaked, and it supports many of the conclusions environment and human rights groups have come to. Read the summary below, or:
Read the full World Bank letter to the PNG Prime Minister.
Read the full World Bank report.
Read the Australian Financial Review article Shut Ok Tedi immediately, World Bank report says, Tuesday March 7 2000.
MPI's Summary of the World Bank Report
The BHP and OTML assessment "reviews a limited set of technical options ... that minimises overall risk to shareholders". The studies look at what options are going to be the least risky for their shareholders - not what are the least risk options for the people of PNG who suffer as a result of the mine. full description
The companies need to draft a closure plan for the mine "without delay". A shutdown plan to mitigate Ok Tedi's environmental, social and economic impacts needs to be prepared urgently. full description
BHP is not offering real choices. The only option it proposes for early mine closure does not include a plan to minimise the impact on people who depend on the mine. As a result BHP concludes that this option, which would have the best environmental impact, would have the worst social impact. This does not need to be the case. full description
People around the mine "overwhelmingly considered that the quality of their lives had deteriorated since 1981". full description
The company's assessment "views risk as a purely financial proposition and assesses risk totally from the perspective of the company". The social studies are inadequate giving only a cursory overview of social issues. full description
The Ok Tedi Mine needs to be "moving towards closure as soon as possible". full description