Landowners oppose OTML acquisition of Misima mine
The business decision by the board and management of Ok Tedi Mining Limited [OTML] to enter into a ‘binding agreement’ with Kingston Resources Limited to acquire the mining license of the shutdown Misima Mine has not gone down well with the traditional landowners in Mine Bay Province.
The non-operational gold and silver mine is located on Misima Island, 251km from the provincial capital, Alotau.
Samarai Murua MP, Isi Henry Leonard speaking on behalf of his people said in a media statement that; “the landowners and affected communities of Misima Island announce their unequivocal opposition to the extension of the expired tenement term over the Misima Mines and reject any attempts by third parties whether private or state-owned to claim rights or interests over their ancestral lands.”
The statement of opposition followed an announcement on Tuesday by OTML tabling an offer to buy the mining license from Kingston Resources Limited at a tune of nearly K161 million [A$60 million] with further contingent payments totaling up to about K94 million [A$35M].
The company is 100% PNG owned, with a 67% direct shareholding by the Independent State of PNG through Kumul Minerals [Ok Tedi] Limited and a 33% interest held by the people of the Western Province.
OTML Managing Director and Chief Executive Kedi Ilimbit said; “we have many great projects on the horizon, from mine improvements to extend the mine life… and… the reopening of Misima gold is just one early step in the journey.”
The journey now faces a stiff challenge, “we condemn in the strongest terms Kingston Resources’ last-ditch attempt to cash in its interests in the Misima Mines after deliberately misleading our people into believing it would develop the project… We will not allow it", the statement from Samurai Murua MP reads.
Mr Isi Henry Leonard further claimed, “Kingston Resources Exploration License EL1747 has expired [and] why is Ok Tedi Mining Ltd and Kumul Minerals Holdings Ltd spending AUD$60million of public funds to buy an Expired Mining License instead of spending public funds in honoring legacy issues of Misima Mine and work with the Misima Islanders and their mining company to apply for a new exploration license.”
NBC Online was unable to verify the claim.
The statement from the local MP's office further states that “the landowners will not permit the extension of the expired tenement or the transfer of rights to any new operator without their free, prior and informed consent.”
According to the Kingston Resources Limited website, In June 2022, Kingston reported the results of the Misima Gold Project Definitive Feasibility Study [DFS]. The DFS confirmed Misima as a large scale, long-life, low-cost operation with compelling project economics. The project is highly leveraged to the upside in the gold price.
“The Misima Gold Project is an exploration and development asset with significant scale underpinned by a 3.8Moz gold Resource and a 1.73Moz gold Reserve.
“The project also hosts a number of exciting exploration targets. Kingston is the first company to focus on recommencing gold production at Misima since Placer Dome ceased its operation in 2004, having successfully produced 3.7Moz over a 15-year mine-life.”
