OK Tedi Mine to Generate K19 billion for PNG in the next 11 years

 The Ok Tedi Mine will generate over PGK19 Billion in dividends for the benefit of Papua New Guinea over the next 11 years, says Ok Tedi Mining Ltd (OTML) General Manager Commercial and Chief Financial Officer Cameron Clark.

Ok Tedi Mining Ltd (OTML) General Manager Commercial and Chief Financial Officer Cameron Clark. [Photo supplied]

Mr Clark said this today when speaking at the PNG Mining and Petroleum Investment Conference in Sydney, Australia.

He said although the mine has been impacted by high fuel cost, and the expected low grade ore transition in 2022, OTML remains profitable and is committed to delivering for its shareholders.

“The outlook for Ok Tedi is a positive one. The Company has tripled its value in the last 6 years and extended mine life by 7 years. This has been made possible by a combination of technical improvements, cost improvement, accelerated mining rates and internal investment in key strategic projects,” Mr. Clark said.

He put this amount into context by saying dividends over the next 11 years will exceed what has been paid in the last 35 years making the period ahead a very important one.

He added that along with taxes, royalties and compensation payments approximating PGK 7 Billion, the overall benefit generated by Ok Tedi in the future is expected to approach PGK 30 Billion.

“We have solid plans in place, and therefore execution of those plans remains the key to ensuring this value is realised,” he said.

He also said that the Company continues in its efforts to extend mine life beyond 2033, having spent more than PGK350 Million on exploration in recent years.

He added that “We have a 2039 mine life case however this case reduces NPV by 30% and causes additional environmental impact and therefore requires further work before it can be considered a viable option.

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