Ok Tedi Mining Limited (OTML) marked a significant milestone with the successful signing of the 4th Community Mine Continuation Agreement (CMCA), featuring new and improved terms that reinforce the company’s enduring commitment to the communities of Western Province and Papua New Guinea.
The 4th CMCA delivers the largest increase in benefits in the agreement’s history – with up to an 80 percent rise across the board, and some regions receiving more than 100 percent increases in their current CMCA compensation packages. These benefits are not only larger in scale but broader in scope.
The new CMCA introduces three key components:
• Youth Development Programs to empower future generations
• Short-Term Investment Opportunities to promote economic sustainability
• Impact Projects Agreement to address social development gaps
“These additions reflect our belief that the future of our communities lies not only in mining, but in education, entrepreneurship and resilience,” said Ok Tedi Managing Director and Chief Executive Officer Kedi Ilimbit during the signing ceremony on 7 October.
Ilimbit acknowledged the presence of Prime Minister James Marape, State-Owned Enterprise Minister William Duma, Mining Minister Rainbo Paita, Minister for Livestock and Member for South Fly Seki Agisa, Deputy Opposition Leader and Member for North Fly James Donald, Western Provincial Governor Taboi Awi Yoto, Member for Delta Fly Agena Gamai, and members of the Fly River Provincial Government.
Also in attendance were landowner leaders, community representatives, statutory agencies and government departments, all of whom joined in celebrating this milestone achievement built on more than a year of inclusive dialogue and negotiation.
The ceremony was witnessed by the Board and Management of Kumul Minerals Holdings, Mineral Resources Development Company (MRDC) management, Mineral Resources Authority Managing Director Jerry Garry, PNG Sustainable Development Program Limited management, Department of Mineral Policy and Geohazards Secretary Harry Kore and his team, and National Energy Authority Managing Director Ronald Maketa.
“This agreement is the result of a rigorous dialogue process grounded in Free, Prior and Informed Consent,” said Ilimbit. “Every village had the opportunity to engage, ask questions and make informed decisions with the support of independent legal advisors. It has been a long journey, lasting 19 months but one that reflects our shared values of transparency and respect.”
Mine village and CMCA leaders, women and youth representatives also commended Ok Tedi for the improvements to the CMCA benefits package and for its willingness to work collaboratively to achieve an outcome favourable to all parties.
Since the inception of the CMCA in 2001, the agreement has ensured that 152 CMCA villages and six mine villages have a direct voice and stake in the mine’s operations. Today, these communities are not only beneficiaries but shareholders, owning 21 percent of shares in Ok Tedi through Mineral Resources CMCA Holdings and Mineral Resources Star Mountain.
The remaining 12 percent of the 33 percent total shareholding by Western Province is held by the Fly River Provincial Government.
“As we honour PNG’s 50th Independence Anniversary, Ok Tedi remains proud as a pillar of nation-building. We are not just a mining company – we are a company owned by Papua New Guineans, serving Papua New Guineans and building Papua New Guinea,” said Mr Ilimbit. “Our legacy is measured not just in ounces of gold or tonnes of copper, but in the schools, health posts, infrastructure and sustainable livelihoods that will remain long after the mine closes.”
Ilimbit said, "To our landowners: thank you for your trust, patience and partnership. Ok Tedi belongs to all of us, and together, we will continue to make it a source of pride for Papua New Guinea.”
