PNG to take full ownership of Ok Tedi mine

Papua New Guinea passed laws that transfer full ownership of the Ok Tedi mine to the state, issuing new shares that grant the government 100% ownership of the mine.

The laws quash a 12-year-old statute that had given BHP Billiton immunity from prosecution for environmental damage tied to the mine’s construction, meaning that immunity has been removed.

The legislation cancels the PNG Sustainable Development Fund’s existing shares in the mine and replaces them with new shares that vest 100% ownership in the state.

According to the article, the PNG Sustainable Development Fund was set up by BHP to manage proceeds from the Ok Tedi mine on behalf of the people of Western Province after BHP withdrew from Papua New Guinea.

The Ok Tedi mine is associated with gold and copper production, and past legal concerns relate to environmental damage stemming from the mine’s construction in the 1990s.

The article states the mine is in the Western Highlands, and it is the asset now being moved to full state ownership under the new laws.

With the immunity law quashed, BHP Billiton no longer has the statutory protection from prosecution for environmental damage tied to the mine’s construction in the 1990s, opening the possibility of legal action under PNG law.

Investors should monitor follow-up announcements from PNG authorities and any legal developments related to environmental claims, since the state now holds 100% ownership and the immunity for BHP Billiton has been removed—these factors could influence sector news and stakeholder outcomes.