Ok
Tedi remains PNG’s biggest tax payer despite 40% plunge in net profit
By
BRIAN GOMEZ in Sydney
Ok Tedi Mining Ltd has announced after tax profit of
K1.24 billion, down 40% from K2.03 billion in 2010, on sales revenue totaling K4.5
billion, down from K5.09 billion in 2010, The National reports.
The company, which is now fully PNG-owned following
the buyout of the 18% stake held by Canada’s Inmet, also maintained its status
as PNG’s biggest corporate tax payer.
Corporate tax last year amounted to K604 million,
down 30% from the K840 million the company paid into government coffers in
2010.
The comparable corporate tax figure for the
country’s second biggest corporate tax payer, Oil Search Ltd, was K509 million,
up from K196.6 million in 2010.
Other payments made by Ok Tedi show the incredible
depth of the contribution the company is making to PNG even though its
operations is scheduled to be shut down by early 2014 in the absence of a
government agreement to allow its operations to continue.
After paying off K881 million to purchase the
remaining foreign equity in the venture, Ok Tedi paid out dividends totaling
K774 million to PNG Sustainable Development Corporation and to the national government.
Additionally mining royalties, which fell by 8%,
amounted to K42.9 million paid to the Fly River provincial government and a
similar sum paid out to mine area landowners.
Other payments for compensation and benefits
amounted to K70 million.
OTML reported that total taxes paid to the national
government, inclusive of pay-as-you-earn deductions from employees and the
mining levy, amounted to K1.2 billion.
It also noted that purchases of goods and services
from PNG suppliers were valued at K988 million last year.
The annual results statement from OTML did not make
any reference to badly-stalled negotiations with the national government on the
possibility of mining operations continuing until the end of the decade in the
light of ongoing feasibility studies.
However, it said copper and gold production had
fallen by 18% and 14% respectively to 130,456 tonnes of copper and 417,236
ounces of gold after a month-long shutdown caused by the rupture of the pyrite
concentrate pipeline in May.
Copper concentrate shipments fell by 10% due to
lower head grades, suspension of production and a force majeure declared by
Japanese smelters in the wake of the tsunami that hit that country.
OTML realised an average copper price last year of
US$3.73 per pound, slightly higher than the US$3.68 per pound received in 2010.
“Net cash generated, before dividends and share
buyback, was down by 33% compared to the previous year, mainly due to lower
shipments and foreign exchange impacts of a stronger PNG kina against the US
dollar,” it said.
No comments:
Post a Comment