The state has transferred its 67 percent interest in Ok Tedi Mining Limited to the Kumul Minerals Ok Tedi Limited (KMOTL).
KMOTL is a wholly owned subsidiary of Kumuls Minerals Holdings Limited (Kumul Minerals).
The signing of the shares transfer documents took place at the Government House. It is a culmination of the State’s broader restructure of its mining and resource holding that requires all mining assets to be held under Kumul Minerals Ok Tedi Limited.
Present to sign over the transfers with Governor General, Sir Bob Dadae, was NEC Secretary, Grace So’on, Kumul Minerals Chairman, Bonny Ninai, and Secretary Francis Lola.
The NEC decision to transfer the shares was made on the 19th of August 2020, under section 49 of the Kumul Consolidated Holdings Act 2002.
The transfer of the 109 million ordinary shares in capital of OTML to KMOTL was approved by the NEC in decision 285 of 2020, in meeting 13 of 2020.
As a result of the transfer, KMOTL will be the shareholder on record for the 67 percent shares in OTML and the dividends for these shares will be paid to KMOTL.
The dividends however, will still be distributed to KOTML in accordance with the National Government’s Dividend Policy, which requires 50 percent of the dividends to be paid to the National Government to support the national budget.
Kumul Mineral will only retain 33 percent for its operations and re-investments whilst the balance will be paid to the sovereign wealth fund and used for community support.
The board of KMHL acknowledged the good work undertaken by the board and management of OTML in ensuring that the mine remains successful and profitable.
Kumul Minerals also holds shares in Porgera Mine, which is working towards reopening later this year.
Kumul Minerals will also be participating in the Wafi-Golpu project and today’s shares transfer will assist Kumul Minerals in raising funds to fund its participation in that project.