BY GLADYS KILA
In a significant gathering in the nation’s capital, today, leaders from the CMCA, local landholders, and the Ok Tedi Mine management team convened today to discuss the CMCA Extension Review.
This review is crucial for determining the mine’s social license to operate through 2033 and beyond, highlighting the ongoing importance of Ok Tedi Mining Limited (OTML) as a vital economic lifeline for Papua New Guinea (PNG).
Ok Tedi Mining Limited, which operates one of the largest copper and gold mines in the world, is pivotal not just for the economic stability of Western Province but for the entire nation.
With a shareholding structure of 67% held by Kumul Minerals Holdings Limited (KMHL) and 33% by the Western Province, the mine has created an indirect economic flow that touches every citizen.
Prime Minister James Marape highlighted this when he remarked, “Every Papua New Guinean benefits from OTML operations, and it is essential we work collaboratively to ensure that this benefit continues.”
- The mine’s life has been extended from 2033 to 2050, representing a 17-year extension that promises continued economic vitality.
- Restructured the business and transformed it into a profitable mine
- Resolved the nation’s Jet A1 fuel issues, eliminating flight disruption
- Infrastructure Development: Significant investment in local infrastructure, such as the long-awaited sealing of the Kiunga-Tabubil highway and ongoing projects on Daru Island, funded through the Infrastructure Tax Credit Scheme (ITCS)
- Provided locals with business opportunities through Tier 1 & 2 contracts that were once reserved for overseas companies only.
- Implemented the government’s local and regional content policy, sourcing items within the country to retain cash and grow the local economy
While the benefits of OTML are clear, the Prime Minister acknowledged the lingering legacy issues associated with environmental impacts along the Ok Tedi and Fly River systems.
“I am also aware of concerns relating to TCS projects, shareholding, MOA, and OTML MOU issues raised by the mine-associated communities”
He said, some of these issues may not be addressed in the CMCA Review Process, but alternate venues and forums are available for appropriate addressing.
“As Prime Minister, under my watch, we will attend to the issues identified here and have them addressed”
Marape stressed, my government has been vocal about ensuring the natural endowments of our country are harvested for the uttermost benefit of the ordinary Papua New Guineans whilst at the same time, the investors benefit on a fair share of their investments.
“This means that the landowners, policy makers, investors and other relevant stakeholders need to work collaboratively and earnestly to put together such policies and legislative reforms that promotes benefits that are for all and ensure no one is left behind” said Marape,
Moreover he said, Land and Environment in PNG is an important part of our life, so as culture is the centerpiece of everything to us Papua New Guineans. Every Papua New Guinean is a landowner. We all own land which is the most valuable and central asset to our societies.”
“OTML area of operations is no different, as a responsible Government, I will direct all State Agencies, KMHL, and MRDC to have round table discussions with you whilst you’re in POM and have your concerns addressed appropriately”.
“I look forward to a great discussion between Ok Tedi and CMCA communities, and all stakeholders in these meeting and expect a positive Win-Win Outcome at the end of the 6 days discussions and negotiations.”
The CMCA is an important process underpinned by Free Prior Informed Consent. It’s the best Agreement we have in the country and no other resources developer has an Agreement similar to CMCA. On this note, I applaud OTML and the CMCA and Mine Leaders for maintaining the CMCA over the years since its inception in 2001.
“I expect all stakeholders to work together to support OTML in achieving its Growth 2050 strategy which is very promising and exciting. “Says Marape.