Separation may mean K2.94bil for Western

 PNG Sustainable Development Program chairman Sir Mekere Morauata yesterday said the Government’s decision to remove PNGSDP as majority owner of Ok Tedi Mining Ltd will force the company to start drawing the US$1.4 billion (K2.94 billion) of its long-term fund. 

“That money would be spent solely in the Western province,” he said commenting on the standoff with the Government over ownership of PNGSDP and OTML.

Speaking at the company’s annual report meeting at the Crowne Plaza in Port Moresby, Sir Mekere stressed that constructive dialogue was necessary to put in place a fair and transparent exit of PNGSDP from OTML.

“It is in the interest of the State, PNGSDP, and OTML to come to final decisions on the future of both companies soon,” Sir Mekere said.

“OTML has submitted a mine-life extension (MLE) application to the State. 

“It is subject to approval by the State as mining regulator and separately by the two OTML shareholders – PNGSDP (63.4%) and the State of Papua New Guinea (36.6%). 

“The CMCA communities have already given their unanimous approval for mine life extension. 

“Based on the feasibility study, mine life extension is expected to provide US$4.3 billion in social and economic benefits to PNG. 

“Mine life extension increases the value of OTML (both State and PNGSDP shareholding) by US$660 million from US$1.812 billion.”