The OK Tedi mine will continue operation until 2050 following an approval in principal from the OK Tedi Mining Limited (OTML) Board on the mine’s extension.
OTML Chief Executive Officer and Managing Director, Kedi IIimbit estimates the extension will generate K30 billion in dividends, royalties, compensation payments and taxes to the shareholders and communities over the next 27 years.
“The approval by the Board on the eve of Papua New Guinea’s 48th Independence is a welcoming gift to the communities in which we operate and who provide us the social license to do continue,” said Ilimbit.
Chairman of OMTL Board, Jeffrey Innes said the mine had tripled its value in the last six years.
“The Strategic Business Plan gives the Board confidence in OTML’s continued operational success,” said Innes.
The approval of the extension of 17 more years from 2033-2050 is based on a Strategic Business Plan submitted by the Executive Team and discussed during the OTML Board Meeting on 13th September.
The extension was factored by several things including;
- a strengthen long term copper price outlook,
-additional mine waste storage solutions like Engineered Rock waste dumps, - tailoring storage facility to minimize impacts of evironment damage, renewal of aged processing plant assets and
- implementation of other strategic programs that are currently in varies stages of completion.