Photo Credit: Ok Tedi Mining Limited
The state's 67 percent stake in Ok Tedi Mining Limited has been transferred to Kumul Minerals Ok Tedi Limited (KMOTL).
Kumuls Minerals Holdings Limited's subsidiary KMOTL is a wholly owned subsidiary of Kumuls Minerals Holdings Limited (Kumul Minerals).
The paperwork for the transfer of shares were signed in Government House. It's the culmination of the state's wider reorganization of its mining and resource holdings, which calls for all mining assets to be owned by Kumul Minerals Ok Tedi Limited.
Those who signed the papers were NEC Secretary Grace So’on, Kumul Minerals Chairman Bonny Ninai, and Secretary Francis Lola.
On the 19th of August 2020, the NEC decided to transfer the shares under section 49 of the Kumul Consolidated Holdings Act 2002.
The NEC authorized the transfer of OTML's 109 million ordinary shares in capital to KMOTL in resolution 285 of 2020, meeting 13 of 2020.
KMOTL will be the shareholder on record for the 67 percent shares in OTML as a result of the transfer, and dividends will be paid to KMOTL.
The dividends, on the other hand, will continue to be paid to KOTML in line with the National Government's Dividend Policy, which mandates that 50% of dividends be paid to the National Government to support the national budget.
Kumul Mineral will keep just 33% of the proceeds for operations and reinvestment, with the rest going to the sovereign wealth fund to be utilized for community support.
The board of KMHL commended OTML's board and management for their efforts in assuring the mine's continued success and profitability.
Kumul Minerals also has a stake in the Porgera Mine, which is set to reopen this year.
Kumul Minerals will also be involved in the Wafi-Golpu project, and today's share transfer will help Kumul Minerals raise cash to support its involvement in that project.
Reference:
Wokasup, Melissa (8 July 2021). “State transfers OTML shares”.
