The Independent Consumer and Competition Commission (ICCC) has given clearance to Ok Tedi Mining Limited (OTML) to acquire 100 percent of the issued shares in Gallipoli Exploration (PNG) Limited (Gallipoli Exploration).
Gallipoli Exploration currently holds the exploration license EL 1747 for the Misima Gold-Silver Mine Project, located on Misima Island in Milne Bay Province.
The ICCC’s decision is based on its assessment and consideration of the Clearance Application submitted by OTML for its proposed acquisition of all the issued shares in Gallipoli Exploration from the shareholder, WCB Pacific Pty Ltd (WCB Pacific), a wholly-owned subsidiary of Kingston Resources Limited (Kingston Resources), a listed gold and copper company on the Australian Securities Exchange (ASX) and based in Australia.
ICCC Commissioner and Chief Executive Officer Paulus Ain said: “The relevant market for this proposed acquisition is the market for the acquisition of exploration rights for gold and other minerals.
“This market is highly controlled by the State, through the
Mineral Resources Authority. It was assessed that the Proposed Acquisition would not raise any serious competition issues, and it is not likely to have any detrimental competition effects in the identified market or any other domestic market(s) in PNG.”
Mr Ain acknowledged certain non-competition-related concerns raised by relevant landowner groups and the local Member of Parliament.
He added that ICCC’s role was limited to assessing the potential competition effects only of the proposed acquisition, as outlined under Section 81 of the ICCC Act.
“Therefore, despite the genuineness of the concerns raised, the ICCC’s assessment and decision were purely based on competition-related considerations in accordance with the ICCC Act,” Mr. Ain said.
He also acknowledged all other stakeholders who made important submissions that assisted the ICCC in its assessment of the proposed acquisition.
“The proposed acquisition will result in OTML directly holding 100% of the issued shares in Gallipoli Exploration, and ultimately, the owner of the Misima Gold-Silver Mine Project.”
Mr Ain said the proposed acquisition would not affect the structure of the market and current level of competition in any markets in PNG.
“Accordingly, the proposed acquisition would not have, or would not be likely to have the effect of substantially lessening competition in the market for the acquisition of exploration rights for gold and other minerals or any other market(s) in PNG.
“Therefore, the ICCC has given clearance for the proposed acquisition to proceed,” he said.
Thank you tru
The process is on going. The Misima people and landowners should understand the process instead of putting the cart before the horse. We always do the WRONG first and return 10 years later to correct it! We should do the right first before proceeding. ICCC has cleared the sale. It is now up to the next entity to make a decision for the Minister for Mines to deliberate on.
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