PNG Schools and Clinics Hit by Delays, O’Neill Blames Government

 Ok Tedi Mining Limited has defended its recent K160 million acquisition of the Misima Mine in Milne Bay Province, stating that the deal followed strict governance protocols and was commercially negotiated through a competitive bidding process.

This follows comments in Parliament by Prime Minister James Marape, who said the Government and responsible ministry had not been informed of the transaction. The acquisition was made in partnership with Kumul Minerals Holdings Limited and Kingston Resources Limited.

While Samarai-Murua MP Isi Henry Leonard has argued that the exploration license (EL 1747) for Misima had expired and was not renewed, the Mineral Resources Authority clarified that the license was renewed after its expiry on March 20 this year and is pending further consideration by the Minister for Mining.

Ok Tedi confirmed it had already paid over K130 million upon completion of the deal, with an additional K26 million to be paid after 12 months, and a further K26 million after the Final Investment Decision (FID). A royalty of 0.5 percent will apply for every 500,000 ounces of gold produced.

Responding to Leonard’s claim that Misima is not a greenfield project and questioning its value, Ok Tedi stated the mine holds a post-tax net present value of K5 billion at a gold price of K11,000 per ounce.

The company emphasized that it followed industry standards, engaged expert advisers, and secured full support from its board and major shareholder, Kumul Minerals Holdings Limited.

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PNG Schools and Clinics Hit by Delays, O’Neill Blames Government