Papua New Guinea Sustainable Development Program is a unique organisation that is directing the substantial profits from the Ok Tedi mine into a range of long-term development projects for Western Province.

Papua New Guinea Sustainable Development Program Ltd (PNGSDP) promotes development that meets the needs of the present generation and establishes the foundations for continuing progress for future generations of Papua New Guineans.

It derives its income from 63.4% of the annual dividend of Ok Tedi Mining Ltd (OTML), to which it is entitled as its major shareholder. One third of this income goes into its Development Fund to fund current development programs, while the remaining two thirds are placed into a Long Term Fund for use after the eventual closure of the Ok Tedi mine.

PNGSDP is a Papua New Guinean institution but incorporated in Singapore as a not-for-profit limited liability company. Thus, it is registered and operating in PNG as an overseas company.

‘PNGSDP’s vision for Western Province is for the province to be recognised as a model for equitable socio-economic development in PNG by 2020.’

Company functions

The company has three main functions:

• To support and promote sustainable development through projects and initiatives to benefit the people of Papua New Guinea, especially the people of Western Province.

• To prudently manage its Long Term Fund and Development Fund, in order to maximise the development expenditure referred to above.

• To ensure the sound commercial operations of OTML, responsible management of related environmental and social issues, and to sustain the infrastructure established by OTML for broader social and economic development beyond the closure date of the OK Tedi mine.

PNGSDP’s vision for Western Province is for the province to be recognised as a model for equitable socio-economic development in PNG by 2020, and for new industries that support such development to have replaced the Ok Tedi mine’s contribution by the time the mine closes.

This article first published in PNG’s Western Province 2012