Prime Minister Hon. James Marape has warmly commended the Board, management and workforce of Ok Tedi Mining Limited (OTML) for extending the life of the Ok Tedi Mine by a further 50 years — through to 2084, securing one of Papua New Guinea’s most important national economic assets for future generations.
The Prime Minister praised the leadership of the OTML Board and Managing Director and Chief Executive Officer Mr Kedi Ilimbit, describing the extension as one of the most significant milestones in the country’s resource sector history.
“Ok Tedi stands today as the longest-running mine in Papua New Guinea since operations began in 1984,” Prime Minister Marape said. “When I took office in 2019, my government conducted a full inventory of all State-Owned Enterprises. At that time, I was advised that Ok Tedi was expected to close in 2028.” I did not accept that outcome. I believed strongly that Ok Tedi still had more life in it.”
The Prime Minister said the Government immediately directed further exploration and comprehensive reassessment of resource data to determine the mine’s true long-term potential.
“I want to commend Managing Director Mr Kedi Ilimbit who, upon taking leadership, accelerated that work decisively,” he said. “Today, Ok Tedi has confirmed the mine will continue operating until 2084. This is a remarkable achievement and a defining moment for our mining industry.”
Strong Management, Lower Costs and Higher Community Returns
Prime Minister Marape credited the current OTML management team for restoring operational discipline and efficiency across the company, including:
• Reduced operating costs
• Improved productivity and reliability
• Disciplined expenditure control
• Increased returns to local communities through business participation and spin-off opportunities
“They have demonstrated that strong leadership and sound governance can transform a legacy asset into a modern, competitive operation,” the Prime Minister said.
He also highlighted Ok Tedi’s expanded Tax Credit Scheme, which continues to deliver vital infrastructure across Western Province and neighbouring regions.
“These projects are not just figures on paper — they are roads, bridges, services and opportunities reaching our people directly,” he said.
Strong 2025 Performance Delivering Value to PNG
The Prime Minister welcomed Ok Tedi’s strong 2025 performance results, which exceeded production targets despite infrastructure and power-related challenges.
In 2025, Ok Tedi produced:
• 106,018 tonnes of copper
• 298,350 ounces of gold
• 1,008,346 ounces of silver
The company reported unaudited revenue of K9.3 billion, delivering substantial national benefits including royalties, taxes, dividends, compensation payments, training investment and infrastructure funding.
“These results reinforce the importance of Ok Tedi as Papua New Guinea’s 100 per cent nationally owned mining company,” Prime Minister Marape said. “This is mining done for the benefit of our people.”
National Fuel Security and Foreign Exchange Support
Prime Minister Marape also acknowledged Ok Tedi’s critical role in stabilising national fuel supply and easing foreign exchange pressures during recent economic challenges.
“When our country faced serious forex-related fuel supply constraints, Ok Tedi stepped in,” he said. “They invested in alternative fuel systems, strengthened national fuel infrastructure and supported aviation fuel supply across the country.”
He said Ok Tedi’s export earnings — converted back into Papua New Guinea kina — played a vital role in easing foreign exchange shortages. “This was a national burden they helped to carry, and that contribution must be recognised,” he said.
Landmark Increase in Landowner Equity
Prime Minister Marape confirmed that Cabinet has approved a major increase in landowner participation in line with Pangu Pati policy.
“Landowners of Western Province will now hold a 40 per cent equity stake in the Ok Tedi Mine,” he announced.
“This is a historic shift that places our people firmly as partners in development.”
He said discussions will continue with the Western Provincial Government and landowner groups to secure long-term social licensing for the next 50 years of mine operations.
Resource Revenue to Flow into Sovereign Wealth Fund
The Prime Minister also announced a major reform in national resource revenue management.
“Seven per cent of revenue earned from Ok Tedi — and from all major resource projects — will now be channelled into a Sovereign Wealth Fund structure,” he said.
The fund will initially be domiciled at the Bank of Papua New Guinea, with plans to expand it into a fully operational sovereign wealth fund.
“This will ensure our resource revenues are protected, saved and sustained for future generations — long after the minerals are gone,” he said.
Restoring Western Province After Decades of Neglect
Prime Minister Marape said his government is determined to correct historical imbalances faced by Western Province.
He cited major progress including:
• Sealing of the Kiunga–Tabubil Road, which was unsealed when the Government took office
• Ongoing provincial and district road works
• Development of the South Fly corridor, linking the Fly River to the Indonesian border at Merauke
• Infrastructure upgrades across Delta Fly District
• Comprehensive restoration of Daru Town, including road sealing and urban renewal
“For decades, Western Province carried the weight of national economic contribution with limited infrastructure return,” he said. “Now we are restoring Daru and delivering development that should have occurred many years ago.”
Strategic National Connectivity
The Prime Minister also highlighted the importance of the Kiunga–Nomad Road, which will connect with the ExxonMobil PNG LNG tax credit road linking Komo to Nomad.
“This is nation-building infrastructure that connects energy development, logistics and regional growth,” he said.
Anchor of National Prosperity
Prime Minister Marape concluded by reaffirming Ok Tedi’s central role in Papua New Guinea’s future.
“Ok Tedi has been — and will remain — an anchor of our national economic prosperity,” he said. The extension of mine life to 2084, increased landowner equity, strong financial performance, infrastructure investment and sovereign wealth reforms together represent a powerful success story for Papua New Guinea.”
“I commend the Board, management and workforce of Ok Tedi Mining Limited for demonstrating what is possible when leadership, vision and national interest come together.”