Ok Tedi paid out K450mil in dividend for 2021


OK Tedi Mining Ltd (OTML) experienced a challenging year in 2021 with the Coronavirus (Covid-19) pandemic causing production losses and adding substantial cost, according to the company.
OTML in its annual review 2021 report said despite this, the company remained profitable, debt free, and made an annual dividend payment of K450 million.
Managing director and chief executive officer Musje Werror and board chairman Roger Higgins commenting on the review said the most significant challenge in 2021 was the impact of Covid-19 pandemic
“From the start of the pandemic our key priority has been to protect the health and wellbeing of our workforce, town residents and communities while minimising disruption to operations,” Werror said.
“Production was impacted by ongoing labour shortages due to isolation and our strict quarantine control requirements.
“The suspension had a direct impact on 2021 revenue, as well as additional labour costs associated with funding wages for people in isolation or quarantine.
“This resulted in a direct costs associated with Covid-19 management protocols at K155 million.”
Last August, the OTML board approved an updated strategic business plan that included an extension of mine life from 2029 to 2032.
“This extension was the culmination of several years of detailed strategic planning work and will see the company generate an additional K10 billion of revenue to the benefit of stakeholders,” Higgins said. “The extension of mine life, and delivery of value, is premised on the timely implementation of several strategic imperative projects costing approximately K1.779 billion over the next two years.
“These include the removal of 20 million tonnes (Mt) of debris from the centre pit to access high grade ore from 2023, the construction of a 400Mt engineered waste rock dump to enable a larger pit shell and potential option of in-pit waste rock disposal, and the major refurbishment and upgrade of aging processing facilities.”