Ok Tedi to pay K150mil dividend

THE OK Tedi Mining Ltd (OTML) is expected to pay a dividend of K150 million to Kumul Minerals (Ok Tedi) Ltd, and the three landowner entities in Western, says chairman Sir Moi Avei.
He said the company had benefitted from improved second quarter production and strong metal prices, despite a fire at the mine’s processing facility late last year that impacted its January 2021 production.
There was also a two-week suspension of operations in March due to the Coronavirus (Covid-19) pandemic.
“This has enabled the board to declare a dividend to the Kumul Minerals (Ok Tedi) Ltd, which now owns 67 per cent of Ok Tedi following the recent transfer of shares from the State, and the three landowner entities representing communities and collectively owning 33 per cent of company,” Sir Moi said.
He said the OTML continued to maintain a strong balance sheet with no debt, and liquidity remaining within established guidelines.
Sir Moi thanked the management and the workers for their efforts to deliver the result during a difficult time.
He said the OTML board had approved an updated 2021 strategic business plan which extends mine life for a further three years from 2029 to 2032.
This follows the three-year extension announced last year.
“This extension of mine life reflects the combination of a strengthening long-term copper price outlook coupled with detailed strategic planning work undertaken to find mine waste solutions,” Sir Moi said.
“This revised mine life will see the company generate (about) K20 billion in free cash flow over the next 10 years.”
The Board has also approved an investment of nearly K750 million over the next two years to extend the service life of the aging processing facility.