By Lindy Suharupa
Kumul Minerals Holdings Limited (KMHL) has declared a dividend payment of K210 million for year ending 31st December, 2022.
This declared dividend is half of the company’s 67% share investment in Ok Tedi Mining Limited.
With that, the Kumul Minerals Holdings Limited Chairman and Board of Directors presented a cheque of K105 million as dividend paid to the government through State Enterprises Minister, William Duma, yesterday.
Chairman of KMHL Dr Ila Temu explained to Minister Duma that a solvency test was conducted hence, the declared dividend.
“The dividend relates to the 2022 year dividend declares by Ok Tedi. They declared a total amount of K368 million and 67% of that is the dividend that we (KMHL) is declaring for our shareholders.
“Now that amount is K210 million that has been declared by KMHL,” said Dr Ila
Dr Ila further clarified that this is the first time KMHL is paying dividend to the state.
KMHL is the sole recipient of generated dividends by Ok Tedi Mining Limited as alluded to by the Chairman
Dr Ila further said, “Under the Government’s approved Dividend Policy, the state and KMHL share equally any benefit that is declared hence the amount that KMHL is presenting to the state through the trustee delegated Minister is K105 million, which is half of the K210 million.”
Dr Temu also took the opportunity to share some important points about natural resources like oil and gas in the country.
“The challenge is always on how to ensure that cash flow is generated again.
“When the dividend is paid, because the resource is mined out, it is up to us as shareholders and beneficiaries to ensure that we invest the dividend so that it continues to grow.
“This is to ensure that we do not have a complete loss of capital from the amount of minerals that have been mined,” said Dr Ila.
The government has a shortfall of about K4 billion in its national budget therefore, this dividend payment to the state will greatly assist the priority projects set by the government
“The challenge now is upon those companies who are in the income generating sector especially those owned by the state to do what they can do and deliver dividends,” said Minister for State enterprises, William Duma.
A proud Minister Duma thanked KMHL and assured the government’s support and commitment, into the future.
