Mine announces K50mil dividend

OK Tedi Mining Ltd (OTML) has declared an interim dividend of K50 million, chairman Sir Moi Avei announced yesterday.
Sir Moi noted that the dividend was a result of the company’s strong performance during the first seven months of the year where an after tax (and unaudited) profit of US$140 million (K480.075mil) was generated.
“This has enabled the board to declare a dividend to the State who owns 67 per cent of Ok Tedi and the three landowner entities which represent our communities and collectively own 33 per cent of company,” he said.
“We understand during these difficult times that our shareholders are reliant upon returns from Ok Tedi and are pleased that we can continue to provide our support.
“It is fortunate that we are in a position where we can responsibly balance the payment of a dividend with retaining enough reserves to ensure Ok Tedi navigates its way through the current suspension of operations.” Sir Moi commended the efforts of OTML management and its workforce which had placed the company in this position.
However, he said the second half of the year would be particularly challenging noting that while operations, which were temporarily suspended on Aug 5 and planned to resume on Sept 14, would not be at full production levels for several months.
OTML managing director and chief executive officer Musje Werror indicated that this initial shortfall in production was due to the quarantine protocols put in place as part of the resumption plan.
“The required quarantine periods have the effect of reducing the available work time,” he said.
“While this will cause short to medium term labour shortages, this will be addressed through recruitment of additional personnel.”
Werror said the company was prepared to resume safe operations next week.
Sir Moi also announced that the OTML board had approved an updated strategic business plan that included an extension of mine life from 2026 to 2029.
“This extension of mine life is the culmination of a number of years detailed strategic planning work and will see the company generate an additional K10 billion in revenue to the benefit of all stakeholders.”
Sir Moi said the company would continue to invest in near mine exploration to further extend its operations beyond 2029.