A RETURN to mining activity has seen some significant dividend payments made by Ok Tedi Mining Limited to landowners.
OK Tedi Mining Limited paid its shareholders dividends valued at K150 million in December 2016. One third of this dividend or K50 million was paid to Mine Villages and CMCA landowners and the Fly River Provincial Government following agreement on the allocation of the additional equity granted by the State.
OTML chairman Sir Moi Avei KBE said the company was able to make the payments despite a difficult market.
“After the suspension of operations for seven months due to dry weather, Ok Tedi restarted in March 2016 and has performed strongly throughout the year. As a result the company has generated sufficient cash to restore its debt – free position, pay a dividend, and build up cash reserves.”
Sir Moi acknowledged the support of the Prime Minister Peter O’Neill and his government, the workforce, communities, customers and suppliers through this challenging period.
“Ok Tedi is now a much stronger company, capable of operating profitably in a low commodity price environment.”
“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,” Sir Moi said.