PNG's Ok Tedi Mining Limited Renews Special Mining Lease for 20 More Years
Port Moresby, April 24, 2024 - Ok Tedi Mining Limited (OTML) has announced the successful renewal of its Special Mining Lease (SML) 1 (0), securing an additional 20-year lease term extending from 2022 to 2042. This marks the second extension of the SML 1 (0) lease for OTML.
Initially granted in 1981, the SML 1 (0) lease expired in May 2002 but was subsequently extended for another 20 years until its expiration in 2022. Following compliance with provisions outlined in the Mining Act 1992, an application for the renewal of the SML 1 (0) and associated leases for mining purposes was lodged with the Mineral Resources Authority on Monday, December 20th, 2021, leading to the recent extension grant.
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| PNG's Ok Tedi Mining Limited Renews Special Mining Lease for 20 More Years [Photo by OTML] |
The renewal of the SML 1 (0) lease encompasses the renewal of 22 Lease for Mining Purposes (LMP) and two (2) Mining Easements tied to the term of SML 1 (0). These ancillary leases host supporting infrastructure for the mining operations, while the SML 1 (0) lease itself serves as the host area for active mining and milling operations.
Speaking at the SML 1 Presentation event held at the Stanley Hotel in Port Moresby on Tuesday, April 23rd, OTML Managing Director and Chief Executive Officer, Kedi Ilimbit, expressed gratitude to all stakeholders involved in facilitating the extension of the SML 1 (0). Ilimbit underscored OTML's commitment to exploring opportunities for sustainable resource development in the region while providing social and economic benefits to impacted communities and the country at large.
"OTML remains committed to fulfilling our environmental, legal, and social obligations, maintaining positive relationships with the communities impacted by our operations, and securing the social license to operate, which is vital for our ongoing success," said Mr. Ilimbit.
Currently, the company is conducting awareness sessions throughout its impacted communities in preparation for its Community Mine Continuation Agreement (CMCA) extension review. The CMCA Extension Review project, expected to conclude in October 2025 with the signing of the Agreement to continue mine operations, has already commenced.
In parallel, OTML is actively pursuing strategic growth projects aligned with its current Strategic Business Plan. These projects are anticipated to generate K30 billion in social benefits over the next 27 years, including taxes, royalties, and dividend payments.
The company remains focused on driving value for its stakeholders while contributing to the sustainable development of its communities and the broader economy.
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