28 Jan 2014

PNG takeover of SDP to proceed in international arbitration

9:55 pm on 28 January 2014

The Papua New Guinea government's move to take over control of PNG Sustainable Development Program Ltd's majority share in the Ok Tedi mine has gone to

international arbitration.

The International Centre for Settlement of Investment Disputes has registered the SDP's request for arbitration over the government seizure of the company's 63.4 percent shareholding in Ok Tedi Mining Ltd.

The arbitration hearing is separate to other litigation relating to the takeover of the Western Province mine, including National Court action by landowners against OTML which has been ordered to stop dumping mine tailings into local river systems.

The SDP chairman, Sir Mekere Morauta, says the company is seeking restitution of the share of OTML which he says was illegally expropriated by the State, or failing that, compensation for the shares.

Sir Mekere says that when the mine is returned to SDP, the company will discuss with the Western Province community the most appropriate arrangements regarding the Ok Tedi mine for the future of the province.