The Ok Tedi Mining Limited has announced a drastic fall in profits owing to a fall in global metal prices, mechanical failures at the plant and natural disasters affecting its operations and that of a major customer in Singapore. In 2012, OTML achieved a net profit of USD472 million, however last weekend it announced a profit for 2013 of just USD17 million. This adds to the challenges facing the government and the company who are managing ongoing disputes with PNGSDP – formerly Ok Tedi’s major shareholder before parliament legislated its takeover by the national government in 2013. OTML dividends and taxes provide a significant proportion of government revenues. It is thought that this may present a challenge for the government who, in their 2014 budget, made plans to run a sizeable deficit for a second year running and are reaching ever closer to their own limits for fiscal responsibility.