PNG to take full ownership of Ok Tedi mine

Papua New Guinea’s government passed laws that cancel existing shares and issue new ones to grant the state 100% ownership of the Ok Tedi mine.

The legislation cancels the PNG Sustainable Development Fund’s shares in the mine and replaces them with new shares that give the state full ownership.

The laws quash a 12-year-old statute that had given BHP Billiton immunity from prosecution for environmental damage linked to the mine’s construction in the 1990s.

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

The article refers to the mine as being in the Western Highlands and also notes the Fund was set up to manage proceeds on behalf of people of the Western Province.

The Papua New Guinea government pushed the changes through parliament by passing legislation that cancels the Fund’s shares and issues new ones granting state ownership.

The legislation removes the statutory immunity that previously shielded BHP Billiton from prosecution for environmental damage connected to the mine’s 1990s construction, changing the legal framework around environmental accountability.

Everyday investors should note that Papua New Guinea now holds 100% ownership of the Ok Tedi mine and that the country has removed a legal immunity for BHP Billiton tied to historic environmental damage—facts that are material to anyone tracking ownership, legal risk or governance in PNG mining assets.