Papua New Guinea
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Further drilling within SML, says OTML boss

OK Tedi Mining Limited (OTML) managing director and chief executive officer Kedi Ilimbit says there will be further drilling at the Ok Tedi mine within the current Special Mining Lease (SML)

This comes after the OTML board approved, in principle, a further mine life extension of the Ok Tedi mine from 2033 to 2050.

“The preliminary approval will entail further drilling within the current SML as priority,” Mr Ilimbit said.

Last week, OTML released a statement highlighting that its Board had approved in principle a further mine life extension from 2033 to 2050.

This marked a significant milestone for OTML, its shareholders and for Papua New Guinea in general, and a sign of the confidence the Board has in the company’s ability to deliver over the next two decades.

The approval was based on the latest Strategic Business Plan submitted by the Executive Leadership Team and discussed during the OTML Board meeting held in Tabubil on September 13,2023.

A few years back, the board in updating its 2021 strategic business plan announced a further extension of the mine life by three years from 2029 to 2032.

The three year extension was said to generate K20 billion in free cashflow over 10 years.

The recent extension announcement will see the mine generate in excess of K30 billion.

This benefit to the country will be in the form of dividends, royalties, compensation payments, and taxes for the benefit of OTML’s shareholders, communities and Papua New Guinea as a whole over the next 27 years.