Ok Tedi signs historic 4th Community Mine Continuation Agreement

Margaret Idia, Women and Children’s Representative from Manawete Region in the South Fly at the
signing (Image: OTML Media)

Ok Tedi Mining Limited [OTML]is not just a mining company, but it is locally owned and gives service back to the country's citizens.

OTML marked a significant milestone with the successful signing of the 4th Community Mine Continuation Agreement [CMCA], with new and improved terms to the agreement, reinforcing its commitment to the communities of Western Province and Papua New Guinea.

The 4th CMCA delivers the largest increase in benefits in the agreement’s history, and it introduces three new components: Youth Development Programs to empower future generations, Short-Term Investment Opportunities to promote economic sustainability, and Impact Projects Agreement to address the social development gaps.

In commending Western Province Governor, Taboi Awi Yoto, Prime Minister James Marape said the CMCA communities directly affected by the mine gave their license for the mine to continue operating, and without their consent, we could not move forward.

The Prime Minister clarified that the review arrangement was not a final document, but will continue to evolve to meet the changing needs of the people, and that they will receive tangible benefits.

"Every year we will revisit and realign it to ensure it continues to improve lives of the people as this 12th review has doubled compared to previous arrangements," he said

Mine Village leaders with Mr Ilimbit and Ok Tedi Chief Financial Officer Roberto Justo (far right) after their
signing of the agreement (Image: OTML Media)

Mr Marape urged the landowners to use the funds wisely and build better homes and support their children's education.

The signing ceremony was witnessed by the Board and Management of Kumul Minerals Holdings, the Mineral Resources Development Company Management, Mineral Resources

Authority Managing Director Jerry Garry, PNG Sustainable Development Program Limited management, Department of Mineral Policy and Geohazards Secretary Harry Kore and his team, and National Energy Authority Managing Director Ronald Maketa.

“This agreement is the result of a rigorous dialogue process grounded in Free, Prior and Informed Consent,” said Mr Ilimbit. “Every village had the opportunity to engage, ask questions, and make informed decisions with the support of independent legal advisors. It has been a long journey, lasting 19 months, but one that reflects our shared values of transparency and respect," Mr. Ilimbit said.

Since the inception of CMCA in 2001, the Agreement has ensured that the 152 CMCA villages and six mine villages have a direct voice and stake in the mine’s operations.

Today, these communities are not only beneficiaries but shareholders, owning 21 percent of shares in Ok Tedi through Mineral Resources CMCA Holdings and Mineral Resources Star Mountain.

The remaining 12% of the 33% total shareholding by Western Province is held by the Fly River Provincial Government