OTML well placed, says PM

The National Business

OK TEDI Mine Limited (OTML) is well positioned to create additional value for the people of Western as shareholders, says Prime Minister Peter O’Neill.
“This company is an example of what a majority state-owned entity can deliver,” he said when presenting the company’s 2017 annual review.
He said OTML was able to generate cash to invest in attractive growth opportunities like productivity enhancements and near-mine explorations.
“This is further enhanced through strong support from the communities within which it operates,” he said.
“Under the chairmanship of Sir Moi Avei, this majority state-owned entity recorded strong results for 2017.”
OTML is now 33 per cent owned by the people.
O’Neill said OTML had clear business strategies and operating plans, which had enhanced the value of the business to more than US$2 bil (K8bil) with potential for further growth.
“Importantly, mine costs are now internationally competitive,” he said.
“This is ensuring the mine can operate successfully through inevitable commodity price cycles.”
O’Neill said Ok Tedi has:

  • Delivered the best lost time injury frequency rate for 18 years;
  • Delivered a revenue of K3.3 billion, or US$1 billion, up 57 per cent from 2016;
  • Contained its costs to well within the best quartile of international copper producers. The actual is within the 12th percentile;
  • Made a profit after tax of K848 million, or US$266 million;
  • Cash on hand at year-end of K581 million, or US$180 million.
  • Paid a dividend of K380 million, or US$119 million.
  • No debt.

O’Neill said this is be a more challenging year for Ok Tedi.
“This is following the Highlands earthquake and the continuing need to address ageing equipment and infrastructure,” he said.
“But despite the challenges,
I am confident that Ok Tedi will continue to contribute strongly to our economy for many years to come.”