Nabilah S
According to Cameron Clark, general manager of commercial operations and chief financial officer of Ok Tedi Mining Ltd (OTML), the Ok Tedi Mine will generate over PGK19 billion in dividends for Papua New Guinea over the next 11 years.
This was said by Mr. Clark today in Sydney, Australia, at the PNG Mining and Petroleum Investment Conference.
Although the mine has been impacted by high fuel costs and the anticipated transition to low grade ore in 2022, he claimed that OTML is still profitable and dedicated to providing for its shareholders.
The future looks bright for Ok Tedi. In the past six years, the company’s value has tripled, and the mine’s life has been extended by seven years. Technical advancements, cost reductions, accelerated mining rates, and internal investment in significant strategic projects have all contributed to this, according to Mr. Clark.
He explained the significance of this sum by stating that dividends over the following 11 years will surpass those paid over the previous 35 years, making the time ahead very crucial.
The total benefit produced by Ok Tedi in the future is anticipated to be close to PGK 30 billion, he continued, in addition to taxes, royalties, and compensation payments totaling approximately PGK 7 billion.
We have good plans in place, so making sure they are carried out is still essential to realizing this value, he said.
He added that the Company, which has recently invested more than PGK350 million in exploration, is still working to extend the mine’s life beyond 2033.
We have a 2039 mine life case, but this case reduces NPV by 30% and has additional environmental impacts, so more research is needed before it can be considered a viable option, the speaker continued.
