Business News

Ok Tedi Declares Final Dividend of PGK300 Million

Ok Tedi Mining Limited (OTML) Chairman Dr Roger Higgins has announced that the Company declared a final dividend of PGK300 million which was paid on Friday (December 24) to its shareholders, bringing total dividends paid by OTML this year to PGK450 million.

Dr Higgins noted that despite a fire incident at the mine’s processing facility late last year that impacted its January 2021 production, a two-week suspension of operations in March 2021 and ongoing labour shortages due to COVID-19, the Company had benefitted from strong final quarter production and favourable metal prices.

OTML Chairman, Dr Roger Higgins

“This has enabled the Board to declare a dividend to Kumul Minerals (Ok Tedi) Limited, which now owns 67% of Ok Tedi following the recent transfer of shares from the Independent State of Papua New Guinea, and the three landowner entities representing our communities and collectively owning 33% of the Company”, said Higgins.

He added that OTML continued to maintain a strong balance sheet with no debt and liquidity remaining within the established guidelines.

Dr Higgins thanked management and the workforce for their collective efforts, and the support from the local communities to deliver this “Christmas present” for the people of PNG especially during a particularly challenging year.

Added that 2022 will be a modest year as the business transitions from low grade to high grade ore which will present in 2023.

With the recent appointment of the three new directors to the OTML Board, including the first female director, he is confident that OTML will continue to deliver value to its shareholders.

He also announced that the Board had approved an investment of nearly PGK750 million over the next two years to refurbish and upgrade the aging processing facility to ensure its effective and efficient operation beyond the current mine life of 2032.

Meanwhile the OTML Special Mining Lease is due to expire in May 2022 and an application for the renewal of the SML and associated leases has been lodged with the Mineral Resources Authority on Monday (December 20) this year. The lodgement was witnessed by Ok Tedi MRA Project Coordinator.

PHOTO FILE: Courtesy of OTML Communications.

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