MD upbeat on Ok Tedi prospects

THE Ok Tedi gold-copper mine has a range of business strategies that it will pursue to sustain its operations in Papua New Guinea after being restored to profitability, managing director Peter Graham said.
MD upbeat on Ok Tedi prospects MD upbeat on Ok Tedi prospects MD upbeat on Ok Tedi prospects MD upbeat on Ok Tedi prospects MD upbeat on Ok Tedi prospects

Peter Graham

Staff Reporter

The company is now ready to pay dividends to shareholders after rationalising its workforce and re-establishing the operations after an El Nino-induced seven-month suspension of operations in 2015, he told the PNG Mining and Petroleum Investment conference.
 
The rationalisation included tighter management of supply and service contracts, fewer roster panels and a reduction of employee numbers from 2250 to 1500.
 
"Ok Tedi is now a much leaner organisation," Graham said.
 
The company is now debt-free after maintaining a line of credit from the Bank of South Pacific and is able to fund its shareholders from existing cashflows.
 
Graham said that the company had developed a range of strategies from a base case to an optimistic case after analysing 600 possible combinations.
 
"We've taken a fresh look at our business strategies," Graham said.
 
The company's target case would double the value of the business and sustain operations up until 2030.  
This business case would entail a revised life of mine plan, optimisation of the pit, and haulage model updates.
 
An optimistic business case would see ongoing exploration success that would ensure the ongoing operation of the mine for decades to come, Graham said.
 
"Ok Tedi is well placed and profitable in a low price environment. We've now got a clear business strategy to capture enhanced value. We're confident that Ok Tedi has got a strong future," Graham said.   

 

topics

loader