Ok Tedi Mining (OTML) has projected a K30 billion ($11.9 billion) spend on social benefits for PNG over the next 27 years.
Based on the company’s strategic business plan and a life of mine extension to 2050, OTML anticipates the funds will benefit the PNG Western Province in the form of taxes, royalties, and dividend payments.
Speaking at the 17th PNG Energy and Investment Conference in Sydney, OTML managing director and chief executive officer Kedi Ilimibit said the money will usher in significant sustainable development for mine operation-impacted communities.
“We operate with excellence, maximising the value of our mineral resource, in an environmentally responsible way, to deliver sustainable economic and social benefits to our communities and the people of PNG,” he said.
Ilimbit emphasised that the benefits will be underpinned by several strategic undertakings which began in 2023.
“This year was a transformative one for OTML marked by the appointment of a new board chairman in Jeffrey Innes, and my appointment as managing director and chief executive officer,” he said.
“This change in leadership was the catalyst for a comprehensive overhaul of restoring, resetting, and reinvigorating the entire business with a senior leadership team restructure, strategic emphasis on business improvement, cost efficiencies and liquidity, stakeholder engagement, long-term planning, and implementation of tax credit projects aligned to the national Government strategy.”
Ilimbit highlighted strategic key projects such as the East Wall Cut Back, Engineered Waste Rock Dump 2, and the Tails Storage Facility, as well as no underground operations.
Looking ahead, Ilimbit envisions sustainable growth up to 2050, with a particular focus on the energy transition.
“We are committed to cleaner, safer power generation, energy-efficient housing and accommodation, and environmentally conscious transportation,” he said.
Ilimbit also said OTML is currently monitoring the current El Nino weather pattern and has an incident management team that meets regularly to plan around the dry weather impact.
“Whilst the challenges of the El Nino phenomenon are real and have affected our operations recently, we are optimistic our operations will continue and we look forward to delivering benefits to our shareholders.”
Subscribe to PNG Mining and receive the latest news on product announcements, industry developments, commodities and more.