The OK Tedi Mining Limited (OTML) in Papua New Guinea has had its mine life extension approved from 2023 to 2050, with an expected dividends payments in excess of K30 billion (US$8.2 billion), says chief executive officer, Kedi Ilimbit.
Ilimbit said this marked a significant milestone for the mine, its shareholders and for the country in general.
“It’s a sign of the confidence the board and management has in the company’s ability to deliver over the next 20 years,” he said.
Ilimbit said the extension approval was based on a strategic business plan submitted to the board through the strategic leadership team, and was discussed at the OTML board meeting on 13 September.
The projected K30 billion (US$8.2 billion) dividends would be allocated for landowner royalty payments, compensation payments, and taxes for the benefit of OTML stakeholders, communities and PNG over the next 27 years.
Ilimbit explained that the extension to mine life was in line with OTML’s vision to operate with excellence in mineral production, which includes maximising the value of the mineral resource in a sustainable and environmentally friendly way, which would deliver sustainable economic and social benefits to the people of the mine affected areas and for PNG through revenues.
“Several factors have contributed to making the extension possible, including a strong global long-term copper price outlook as well as innovative mine waste management solutions.”
Ilimbit said some of these solutions to mine waste disposal included engineered waste rock dumps and a tailing storage facility to minimise the impact on the environment, renewal of aged processing plant assets and implementation of other sustainable strategic projects that were currently in various stages of completion.
OTML board chairman Jeffery Innes said the strategic business plan gave OTML confidence in its operations plan. He added that the company had tripled its value in the last six years and the outlook was a positive one.