Mine pays K400mil bonus

SHAREHOLDERS of Ok Tedi Mining Ltd (OTML) received a final dividend of K400 million yesterday.
Speaking during the cheque presentation to shareholders in Port Moresby, chairman Sir Moi Avei said this followed an interim dividend of K150 million paid in September.
He said despite the challenges of the Covid-19 pandemic which resulted in a six-week suspension of operations, OTML had a strong and profitable year and that had enabled the company to complete the K800 million self-funded investment in the crusher replacement project, distribute K550 million to its shareholders and retained a strong and debt free balance sheet.
“I’m grateful to the management and staff of OTML, our business and community partners for their efforts and resilience during a particularly difficult period,” he said.
Sir Moi noted that the management would need time to sort out approvals for various payments that needed to be made.
OTML is 67 per cent owned by the State with three Western entities representing the Fly River provincial government, the mine area villages and the impacted communities which collectively own 33 per cent of the company.
From the K400 million, the State received K268mil, Mineral Resources Star Mountain Ltd received K36m, Mineral Resources Ok Tedi No. 2 Ltd received K48mil and the Mineral Resources CMCA (Community Mine Continuation Agreement) received K48mil.
OTML managing director and chief executive officer Musje Werror said he was proud of the way OTML had responded to the challenges encountered this year.
“The company suspended operations in August and September in response to reported cases of the Covid-19 on site,” he said.
“This was in addition to two periods of lockdown.
“A number of major changes to the business were necessary to resume operations without compromising the health and safety of our employees, business and community partners.
“This year’s performance would not have been possible if it wasn’t for their collective effort and support.”
Prime Minister James Marape, as a trustee shareholder for OTML, acknowledged the board and management for declaring a biggest dividend in a tough year.
He said this showed that the country could operate a world class mine and deliver significant dividends.
Meanwhile, Werror said OTML made a contribution to the broader PNG economy this year generating more than US$1 billion (K3.5bil) of foreign currency earnings, directly injecting more than US$550 million (K1.9bil) into the local currency market and supporting hotels and the airline industry when business travel was at its lowest.