Shareholders of the Ok Tedi Mining Limited (OTML) have a reason to smile as the Company paid an interim dividend of K100M on Thursday October 26th while also citing a positive outlook for a final dividend payment for December 2023.
OTML Board Chairman Jeffrey Innes said, “We are proud to say that OTML is committed to deliver maximum returns to our PNG shareholders, mine impacted communicates and the people of Papua New Guinea.
He said the Company has gone through numerous changes in the latter months of 2022 and more so this year with leadership changes, a business restructure, prudent cost management measures after conducting reviews and realigning plans to meet its targets.
“As a result, we have seen a turnaround in production levels and operational costs and that gives the Board optimism about the Company’s future and confidence in its continued operational success,” Mr Innes said.
Mr Innes thanked the employees, contract partners, and mine impacted communities for their resilience and support throughout the transition period.
He said OTML has always been a resilient company and the Board is confident of meeting its final dividend pay-out in December 2023.
“Our focus currently is to ensure existing systems and processes that are in place are improved to strengthen our operations and derive maximum value of the resources we have during and beyond the current Life of Mine plan of 2033,” he said.
In September this year, the Board also approved in principle a further mine life extension from 2033 to 2050.
This is a significant milestone for OTML, its shareholders and for Papua New Guinea in general and further enhances the confidence the Board has in the company’s ability to deliver over the next two decades.
The approval is based on the latest Strategic Business Plan submitted by the Executive Leadership Team and brings to life OTML’s Vision to operate with excellence, maximising the value of the mineral resource in an environmentally friendly way, to deliver sustainable economic and social benefits to the mine communities and the people of PNG.
Managing Director & Chief Executive Officer, Kedi Ilimbit, said “The approval by the Board is a welcome gift to the communities in which we operate and who provide us the social license to continue, as well as to the people of PNG.”
Mr Ilimbit further stated, “The revised mine life will see the Company generate in excess of PGK30 Billion in dividends, royalties, compensation payments, and taxes for the benefit of OTML’s shareholders, communities and Papua New Guinea as a whole over the next 27 years.”
Mr Innes, shared his optimism about the company’s future, stating “The latest Strategic Business Plan gives the Board confidence in OTML’s continued operational success.
Mr Innes added, “OTML has tripled its value in the last six years and the outlook is a positive one. The mine life extension reaffirms OTML’s commitment to sustainable growth, economic prosperity, and community well-being supported by environmental sustainability, community development and operational excellence.
The Ok Tedi Mine is 100% PNG owned with the State of PNG through the Kumul Minerals Ok Tedi Ltd owning 67% while three Western Province entities hold the remaining 33%.
Since mining operations commenced in 1984, the mine has generated PGK13 Billion in dividends to PNG shareholders, PGK10.2 Billion in taxes/duties, PGK1.5 Billion in compensation payments, and PGK1.3 Billion in royalties. The mine has also paid PGK972 Million in Community Mine Continuation Agreement (CMCA) payments since 2001 and spent PGK515 Million in Tax Credit Scheme projects since 1997.