Sir Moi noted that despite a fire incident at the mine’s processing facility late last year that impacted its January 2021 production, and a two-week suspension of operations in March 2021 due to COVID19, OTML had benefitted from improved second quarter production and strong metal prices.
He said, “This has enabled the Board to declare a dividend to the Kumul Minerals (Ok Tedi) Limited, who now owns 67% of Ok Tedi following the recent transfer of shares from the Independent State of Papua New Guinea, and the three landowner entities representing our communities and collectively owning 33% of Company.”
He added that OTML continued to maintain a strong balance sheet with no debt, and liquidity remaining within board established guidelines. Sir Moi thanked management and the workforce for their collective efforts to deliver this result during a particularly difficult time.
Furthermore, Sir Moi also announced that the OTML Board had approved an updated 2021 strategic business plan which extends Mine Life for a further three years from 2029 to 2032. This follows the three-year extension announced last year.
“This extension of mine life reflects the combination of a strengthening long term copper price outlook coupled with detailed strategic planning work undertaken to find mine waste solutions,” he said.
This revised mine life will see the Company generate in the order of PGK20 billion in free cashflow over the next 10 years. Sir Moi also announced that the Board had approved an investment of nearly K750 million over the next two years, to extend the service life of the aging processing facility.