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One of the largest open-cut copper and gold mines in the world commenced operation in May 1984 in the Star Mountains of Papua New Guinea. Waste rock and tailings are currently dumped into the Ok Tedi, a tributary of the Fly River. Mine development has been surrounded by controverey concerning the potential environmental impacts of this major development This paper outlines the environment in which the mine is situated; details traditional resource use in the area; reviews the history of mine development and evaluates the current situation with regard to waste disposal. Details of the current concerns expressed both within and outside the country about the long-term impacts of this project are also presented. As such this paper serves as a background to the other papers in this volume, which examine issues such as tailings toxicity; heavy metal levels in fish; the complexing capacity of waters in the drainage basin; and the limnology of lakes associated with the Fly River flood plain.