Photo: Ok Tedi Mine
Over the next few years, OK Tedi Mining Limited expects to witness a gradual growth in dividends of up to K1 billion each year.
Musje Werror, managing director and chief executive officer, spoke at the PNG Mining and Petroleum Conference and Exhibition in 2021.
Mr Werror stated that OTML's 2021 Strategic Business Plan affirmed a US$475 million increase in value to US$3.7 billion, with the mine life extended by three years from 2029 to 2032.
A boost in value from the 2020 plan, which saw the mine's life extended from 2026 to 2029.
According to him, the revised value and mine life extension are contingent on the timely completion of five critical essential projects.
These projects include, the removal of 20Mt of debris from the Centre Pit at a cost of $62m to access high grade ore from 2023, construction of a 400Mt Engineered Waste Rock Dump at a cost of US$135m to enable a larger pit shell and potential option of in pit disposal, underground depressurisation of the pit walls to ensure wall stability at a cost of US$10m, increase storage capacity for PCon to extend beyond 2032 at a cost of US$20m and refurbish and upgrade of aging processing facilities at a cost of US$280M. The US$240 million Crusher Replacement Project was another big project completed last year. By 2023, mining will have begun where the old crusher stood, allowing access to high-grade ore.
“The next 12 months will see OTML complete the transition from current lower grade ore to high grade ore sources.
“While we had hoped this transition would start to be evident by the final quarter 2022 the impact of COVID on material movement in the mine over the last 15 months has pushed this into 2023.”
Mr. Werror predicted that revenues would rise steadily from around US$1 billion per year to around US$1.4 billion in the coming years.
“This in turn will see a progressive increase in dividends up to PGK1billion per annum over the next several years, before increasing even further thereafter.
“This of course subject to fluctuation in metal prices and assumes copper price will be in the range US$3.70 to US$3.80/lb over the three-year period and a gold price that will trend down from US$1,800/oz towards US$1,500/oz,” he added.
“The Company expects to generate circa PGK30 billion in benefits over the next 10 years.
“The future looks very promising from a social and economic perspective for the country and the extension of mine life provides additional time for the company to explore and develop new ore resources.”
Reference: Post-Courier (3 December 2021. “Werror: OK Tedi Eyes K1bn In Dividends”.
