Papua New Guinea's OK Tedi Mining Limited (OTML) chairman Jeffery Innes says the mine has seen a significant amount of capital works this year to ensure it can extend operation to 2050 and beyond.
“We had to do a lot of capital works at the mine this year to make sure that we can actually keep going for another 20 or 30 years, that is a major project,” he said.
“We need to continue to work at the steady rate and be focused on safety, environment and the people, in that way, we will be able to declare regular interim dividends and better final dividends to both PNG and Western province.”
OTML chief executive officer Kedi Ilimbit said Ok Tedi had so far brought in around US$700 million (about K2.6 billion).
“We intend to bring in another US$300-US$400 million (about K1.1-K1.48 billion) and that should see us bring in a revenue of about US$1.2 billion (about K4 billion) into the country, of that we retain back 30 per cent, 70 per cent we sell it to the market like BSP or ANZ or whoever but we operate within the guidelines of the Central Bank,” he said.
Innes added that the revised mine life would see the company generate in excess of K30 billion in dividends, royalties, compensation payments and taxes for the benefit of OTML’s shareholders, communities and PNG as a whole over the next 27 years.
“So far this year, we have budgeted to spend US$700 million (about K2.59 billion) on operational costs, so far we have reduced that by looking at costs savings and activities to be deferred and we are now sitting at US$630 million (about K2.33 billion), in terms of spending,” he said.
“Production as we speak today, we are ahead of the November shipments, in November we are supposed to do four shipments, so far we have already made two which means two more shipments.”
Statement/TheNational/PacificMiningWatch
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