Trust loses challenge against PNG's Ok Tedi mine takeove

Ok Tedi Mining. Photo ABC
A court in Papua New Guinea has upheld the government's takeover of the country's biggest mine.

Last month, Prime Minister Peter O'Neill rushed through laws allowing his government to take direct control of the Ok Tedi copper and gold mine in Western Province.

The charitable trust PNG Sustainable Development Program (PNGSDP) had owned 63 per cent of the mine, with the state owning the rest.

The laws cancelled the PNGSDP's shares and issued new shares to the state, giving it complete ownership. The government later appointed a new board to Ok Tedi Mining Limited.

The trust went to the National Court seeking an injunction, preventing Ok Tedi's board from paying dividends or dealing with the mine's shares or assets.

But local reports say Justice Catherine Devani has dismissed the motion, ruling that the recently-passed laws meant the PNGSDP was not a director or shareholder.

ABC News
Previous Post Next Post