The operators of Papua New Guinea's Ok Tedi mine will work with Australian scientists to develop projects in the area once the mine closes in 2012.
A memorandum of understanding has been signed between the mining company and the Australian Centre for International Agricultural Research to launch collaborative research projects to boost food production and incomes for the people of Western Province.
The mine generates huge income for PNG but along the Fly River dumped mine spoil has caused massive environmental damage which will only get worse in years to come.
The Australian High Commissioner to PNG, Michael Potts, says the new aid project should help deliver food security and generate income for the people of the area.