The recycling plant hails from Denmark and is designed to cut up big tyres and conveyor belts into about 3 tonnes per hour of 1-3mm-sized rubber granules.
Located at a yard stacked up with three decades of old haul truck tyres at the mine's Tabubil township, the plant also extracts the steel reinforcement wires from the tyres and belts for separate recycling.
Commissioned a week ago, the plant will eliminate the need to create more landfill, with some of the tyres weighing 3t each.
"The use of recycling mine tyres in this way is a world first and the eyes of the mining world are fixed firmly on what we have achieved and the progress we will make over the coming months," Ok Tedi Mining managing director and chief executive officer Nigel Parker said.
"This plant will recycle used mining tyres, conveyor belts and other hard mining waste materials into sustainable environmentally friendly products.
"The plant will recycle many tonnes of used mining tyres - 30 years of mining waste that would otherwise have been buried, creating a problem for future generations to deal with."