OTML Launches CMCA Extension Review Project

By: PNG Business News March 06, 2024

Launching of the CMCA Extension Review Project at the Tabubil Country Club.

Ok Tedi Mining Limited officially launched the Community Mine Continuation Agreement (CMCA) Extension Review Project 2024 - 2025 on 17th February and commenced engagement meetings on 19th February.

The CMCA Extension Review Project will be conducted from 2024 to 2025 with the aim to obtain consent from the 158 mine impacted villages to extend mine operations from 2026 to 2033.

The project will review the entire CMCA agreement between OTML and the eight CMCA regions and mine villages, with a particular emphasis on the total benefits packages.

OTML Manager Community Relations and Sustainability, Jeffery Tom, elaborated on the importance of the project with a focus on aligning community initiatives with the company’s new vision.

“OTML operates under a social license which is the CMCA that has been enacted by Parliament as part of the 11th Supplemental Agreement”.

“The CMCA extension is commonly known as a Mine Life Extension (MLE) agreement and the review is crucial to ensure the community is well informed before consenting to an extension of the agreement period for another eight years,” Mr Tom said.

He added that the consent given by the communities, gives OTML the social license to operate (SLTO) and help secure the interest of the communities and the country that depends on the mine.

“So it is in the best interest of the impacted communities and beneficiaries to seek continuity of the benefits that is derived from Ok Tedi; to have the mine secured so Ok Tedi will continue to operate. This is why the CMCA Extension Review Project is important,” he stressed.

The review process will include village meetings, regional meetings, and working group meetings.

Village meetings will be conducted in all 158 CMCA and Mine villages while the regional meetings will be conducted at regional centres and will involve nominated village representatives and other key stakeholders.

The working group meetings will be between the OTML management, other key stakeholders and regional delegates elected from the village meetings, which also include regional women and youth presidents.

All the village meetings are facilitated by Independent Facilitators, and the meeting process is observed by three (3) highly esteemed Papua New Guinean Independent Observers. Officers from OTML Community Relations & Sustainability Department and Ok Tedi Development Foundation (OTDF) will provide support to the Independent Facilitators and the Observers.

During the CMCA extension review period, relevant State Agencies and stakeholders who have an interest in OTML operations will participate at different stages of the meeting.

The CMCA agreement was established in 2001 with the signing of the first agreement, which was subsequently enacted by the PNG Parliament through the 9th Supplemental Agreement.

The Ok Tedi Mine is a 100% PNG owned company with the State of PNG through the Kumul Minerals Holding Limited owning 67%, while the remaining 33% is owned by three Western Province entities; the Fly River Provincial Government (MROT2) 12%, CMCA communities (MRCMCA) 12% and Mine Villages (MRSM) 9%.

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