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Ok Tedi mining MOA under review in Kokopo

 THE memorandum of agreement for Ok Tedi Mining Ltd (OTML) project is currently under review.
Parties to the MoA were meeting in Kokopo, East New Britain, for the review.
The parties included the State, Western Provincial Government (WPG), Star Mountains Local Level Government (SMLLG) and Mount Fubilan Resources Association (MFRA) which represented six concerned mine villages.
High on the agenda was the implementation of transfer of 10% royalty from WPG to six mine villages, which was agreed on by all parties two years ago when the MoA was last reviewed.
At present, royalty break up was such that WPG and the six mine villages get 50% each of total amount based on OTML’s monthly sales of product.
If the transfer of 10% from WPG to the villages was effected the villages will get 60% while the WPG’s portion will reduce to 40%.
The transfer of the 10% royalty portion was proposed by the mining villages during the 2012 review because they saw that the production levels of OTML under the mine life extension (MLE) would be reduced by one third from the current production levels and would therefore affect the royalty levels.
Other benefits that will be discussed include the transfer of 20% of total special support grant from WPG to SMLLG and finalisation of provisions of the MoA.
Chairman of the review meeting Sean Ngansia said all parties were committed to making sure that issues were discussed adequately.
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