The National aka The Loggers Times | May 30, 2018
Fly River (Western) government and communities impacted by Ok Tedi mine will at the end of this year have 33 per cent ownership of the project.
This is according to Ok Tedi Mine Ltd (OTML) chairman Sir Moi Avei in the company’s report for the last financial year.
“As reported last year, the State, the Fly River government and the CMCAs (community mine continuation agreement areas), reached agreement, whereby the provincial government and special purpose community entities will collectively hold a 33 per cent equity interest in Ok Tedi with the State retaining the balance,” he said.
“This change, expected to be completed in 2018, will serve to further strengthen the relationship between Ok Tedi and our host communities.
“OTML will remain.”
The company last year recorded a net profit of K848 million (US$266 million) and generated K84 million (US$ 246 million) of free cash-flow.
This in turn allowed it to distribute K380 million (US$119 million) of dividends in 2017.
Sir Moi said the result was achieved through combined efforts of its employees and contractor partners. “We have been able to meet internal production targets in 2017,” he said.
“Our operations delivered the highest mine production, ore processed and metal production for the last five years.
“The company also played an important role in generating foreign currency with US$ 1billion (K3.25 billion) of sales revenue generated during the year.
“I wish to thank management and the workforce of Ok Tedi for their continued commitment and valued contribution.”
Sir Moi said the company also continued to make significant contributions to services and infrastructure development in areas affected by the mine through its community development programmes.
“The OTDF (Ok Tedi Development Foundation), a subsidiary of OTML, serves as the vehicle for delivering projects and services funded by contributions made by OTML directly and through the CMCA Trusts and the tax credit scheme,” he said.
“OTDF serves this purpose with the eventual goal of broadening its shareholder base and expanding its role to be a significant contributor to long-term development in Western.”