The Fly River Provincial Government (FRPG) have received their second batch of K7.2 million in dividends from Mineral Resources Ok Tedi No.2 (MROT2)
The payment is part of dividend proceeds for the 2019 financial year from MROT’s equity in Ok Tedi Mine Limited (OTML).
Under a Provincial Executive Council (PEC) decision of April 2019, any dividends received from OMTL is to be split in two – 40 per cent to MROT2 Investments and 60 per cent to the province.
A total of K12 million was received by MROT2 from OTML in December 2019. Of this 40 per cent was retained for investments, while the 60 per cent, K7.2 million, announced today will be distributed as dividends.
From the K7.2 million, K720, 000 has been allocated to subsidise school fees for Western Province Students with the balance (K6.48 million) to be shared between FRPG and the three District Administrations.
Earlier in October 2019, OTML also released K12million to MROT2 as its third quarter dividend. From that, 40 percent was also retained for investments and 60 per cent (K7.2 million) was paid to the FRPG and the three districts.
MROT2 has contributed K14.4 million from its 2019 dividends towards development projects in the three districts in the province.
Western Province Governor and Chairman of MROT2 Hon. Awi Taboi said he was pleased that MROT2 was able to deliver a dividend to the Provincial Government, and commended MRDC for understanding the aspirations and development priorities of the three Districts and the Province. This payment will go towards supporting the development budget of the Province. The Governor said a large portion of MROT2’s income comes from revenue from the Ok Tedi Mine.
“Ok Tedi continues to contribute substantially to national economic growth, to government revenue through taxes, and dividends to its shareholders.
“Through the new equity structure effected in 2017, MROT2 now holds a 12% direct stake in the mine.
“But copper and gold are finite resources and the mine will not go on forever. Hence it is important that we invest wisely the dividends we receive, as well as develop community infrastructure to improve the livelihood of our people.”
The governor expects the three district to apply their share of the dividend they are receiving towards infrastructure, education and health projects that will impact villages in many parts of the vast province.
“With these funds, I want to see clean water projects delivered, classrooms built for our schools, or small businesses started by villagers,” the Governor said.
The K6.48 million will be shared between the FRPG (40%) and the three districts (20% each);
- FRPG
- North Fly District
- Middle fly District
- South Fly District
K2.592 million K1.296 million K1.296 million K1.296 million Through the new equity arrangement effected in 2017, the state handed its 33 per cent share in the OTML to be shared between FRPG, Ok Tedi Landowners and CMCA communities in Western Province.
MROT2 is the trust company, which holds in trust a 12 per cent equity interest of the Ok Tedi Mine on behalf of the Fly River Provincial Government.
While Mineral Resources Star Mountains limited (MRSM) and Mineral Resources CMCA Holdings limited (MRCMCAH) hold in trust 9 per cent and 12 percent interest in OTML respectively for the Ok Tedi Mine village landowners and the CMCA region.
All three trust companies are managed by the Mineral Resources Development Company (MRDC) under a trust agreement.