Ok Tedi Mining Limited (OTML) is making headlines today with its exciting announcement: the company has entered into a binding agreement with Kingston Resources Limited to acquire the Misima Gold and Silver Project for a cool A million (approximately K161 million). But that’s not all! The deal also includes potential contingent payments that could reach an impressive A million (around K94 million), indicating OTML’s serious commitment to the mining industry in Papua New Guinea.
In an enthusiastic statement, OTML Chairman Mark Stone highlighted the company’s focus on tapping into the immense mineral resources that Papua New Guinea has to offer. “Papua New Guinea is a mineral-rich land with many natural treasures just waiting to be unlocked,” Stone said. He believes that the Misima mine—boasting a formidable resource estimate of 3.8 million ounces of gold and 22.1 million ounces of silver—represents just the beginning of what’s possible in this diverse nation.
Kedi Ilimbit, the Managing Director and CEO of Ok Tedi, framed this acquisition as part of a broader strategy for growth. “We have many exciting projects ahead, from mine improvements aimed at extending operational life to our ambitious ‘lighting up the west’ hydro-electrification initiative,” he explained. The reopening of the Misima mine is just one of many promising steps OTML is taking to bolster the local economy and create lasting benefits for the communities involved.
One of the standout features of this partnership is OTML’s commitment to community consultation, which will pave the way for a smooth transition in ownership. Ilimbit emphasized the importance of ensuring that local communities enjoy economic benefits from the project, stating, “Through this project, we will boost social and business opportunities on Misima Island.”
For those unaware, Kingston Resources Ltd—a publicly listed gold and copper company based in Australia—has owned the Misima project entirely since 2021 and has completed a Definitive Feasibility Study (DFS) confirming the viability of a new, long-term open-pit mining operation at the site.
The acquisition will be funded through OTML’s cash flows, with various funding options being explored for the development and construction phases of the project. However, there’s a bit of red tape to navigate: the completion of this deal hinges on obtaining necessary consents from relevant stakeholders, including an extension of the current principal exploration license and approval from the Independent Consumer and Competition Commission of PNG.
The Misima mine, previously operated from 1989 to 2004 by Placer Dome Inc., produced an impressive 3.7 million ounces of gold during its operational lifetime. Now, with OTML at the helm, it’s poised for a new chapter, and expectations are high for what this legendary resource can yield in the future.
Tags: #PapuaNewGuinea #Mining #BusinessNews #Economy #Sustainability
