Mine affected villages and Community Mine Continuation Agreement (CMCA) landowners, as well as the Fly River Provincial Government, will be receiving K50 million in dividends from Ok Tedi Mining Limited.
This is one-third of total dividend of K150 million declared by OTML for payment in December 2016.
The revelation of dividend payments should be welcome news for affected villages and CMCA landowners who, although received compensation payments, did not get dividend payments in 2015 due to the mine’s closure.
The announcement comes off the back of OTML performing strongly despite restarting operations in March this year following a seven-month closure due to the El Nino drought.
“As a result, the Company has generated sufficient cash to restore its debt-free position, pay a dividend, and build up cash reserves,” says OTML chairman, Sir Moi Avei, in a media statement.
Sir Moi acknowledged the support of the Government, the workforce, communities, customers and suppliers through the challenging period.
“Ok Tedi is now a much stronger company, capable of operating profitably in a low commodity price environment.”
He added: “I am proud of the way the Ok Tedi team – the Board, management and the workforce – have worked together to reset the cost structure and transition to a revised Life of Mine strategy.
“It is through this collective effort that the Company has restored profitability and been able to provide a return to our shareholders.”
The dividend announcement is a strong indication of OTML future prospects getting back on track.
The 2016 dividend announcement is 58 percent lower than the 2014 dividend announcement of K360 million.