I am pleased to table the 2017 Annual Review for Ok Tedi Mining Limited.
In doing this, I note that under the Chairmanship of Sir Moi Avei, this majority State Owned Entity recorded strong results for 2017.
Ok Tedi Mine now has in place clear business strategies, and operating plans, which have significantly enhanced the value of the business.
This is now in excess of 2 billion dollars with identified further value opportunities.
Importantly, mine costs are now internationally competitive.
This is ensuring the mine can operate successfully through inevitable commodity price cycles.
This is a notable achievement.
It was not so many years ago that the mine was facing imminent closure.
Battling against higher copper and gold prices, with higher copper and gold grade in the mine but with uncompetitive costs, the end of the operation was in sight.
Ok Tedi is now able to return strong dividends to shareholders.
It is able to generate cash to invest in attractive growth opportunities – including productivity enhancements and near-mine exploration.
Ok Tedi is well position to create additional value for its shareholders – the people of Western Province.
They now own 33 per cent of the company.
And the mine operation continues to create benefits for Papua New Guinea.
This company is an example of what a majority State Owned Entity can deliver.
Ok Tedi has ample reserves, a clear business strategy, a committed workforce and strong management.
This is further enhanced through strong support from the communities within which it operates.
I will summarise the results for Ok Tedi as follows:
The mine has delivered the best Lost Time Injury Frequency Rate for 18 years – this is all about Ok Tedi keeping Papua New Guineans safe in their place of work;
The mine has delivered a revenue of 3.3 billion Kina, or 1 billion US Dollars – this is up 57 per cent from 2016;
Costs were contained to well within the best quartile of international copper producers – the actual is within the 12th percentile;
Profit After Tax of 848 million Kina, or 266 million dollars;
Ok Tedi has cash on hand at year-end of 581 million Kina, or 180 million US dollars.
Ok Tedi has paid a dividend of 380 million Kina, or 119 million dollars.
Importantly, Ok Tedi has no debt.
2018 is be a more challenging year for Ok Tedi.
This is following the Highlands earthquake and the continuing need to address ageing equipment and infrastructure.
But despite the challenges, I am confident that Ok Tedi will continue to contribute strongly to our economy for many years to come.
I commend to you the Ok Tedi 2017 Annual Review.
Thank you, Mr. Speaker.