PM Marape announces major benefit boost and 56-year extension for Ok Tedi Mine

Western Province is set to get nearly 50 percent of total returns from resource projects after Prime Minister James Marape announced a 7 percent benefit increase and extended Ok Tedi Mine’s operations from 2029 to 2085.

PM Marape made the announcement on Monday at the launch of the Sisimakam–P’nyang Access Road and the Sisimakam–Hawenai–Ralengre Road in North Fly District under the Connect PNG programme.

He was joined by North Fly MP James Donald, Western Province Governor Taboi Awi Yoto, Works and Highways Minister Peter Tsiamalili Jr, provincial leaders, landowners and community representatives.

The Prime Minister thanked Western Province for sustaining OTML for more than 40 years.

“When I became Prime Minister in 2019, we were advised that the mine would close in 2029. Today, because of additional resource discoveries and management work, the mine’s life has been extended to 2085, and potentially beyond,” he said.

Marape said Western Province, which has hosted major resource developments for decades, should receive a larger share of benefits. Under the Government’s reforms, Western Province will receive an extra 7 percent allocation, lifting its participation to about 40 percent.

“When equity returns, royalties, infrastructure tax credit projects and other benefits are added, total benefits flowing back to Western Province approach 50 percent,” he said.

The Prime Minister reaffirmed P’nyang LNG as a signature project.

“P’nyang has been discussed for many years, but we are now putting in place the infrastructure to bring it into production,” he said.

He said the new Sisimakam–P’nyang road will support future LNG development while lowering transport costs.

“Connect PNG is replacing temporary maintenance with permanent roads that connect people, lower costs and open opportunities,” PM Marape said. “We are laying foundations for future generations. With patience, partnership and vision, we can build a stronger PNG.”