OK TEDI Mining Limited (OTML) is committed to maximizing the value of contracts to landowner companies (LANCOS) from the current 31 percent to 60 percent participation by 2025 with the opportunity to venture into major contracts.
OTML announced this in a statement recently saying “this commitment is our vision of social value which reflects our purpose through providing business opportunities in ensuring our local communities ‘transition towards a more sustainable future after the life of mine.”
The company’s focus is to ensure its Landowner Companies (LANCOS) from the Mine Impacted communities and Western Province can establish and sustain their businesses into the future.
“Ok Tedi has contributed a lot to PNG’s economy over the years and while we continue to do that, we also want to focus on improving the livelihood of our mine impacted communities and the people of Western Province.
“One way of doing that is to ensure the local people know how to run their businesses profitably and be able to sustain these businesses and the benefits to the wider population of the affected communities,” Managing Director and Chief Executive Officer of OTML, Kedi Ilimbit said.
Over the last 38 years, the scope of works offered to LANCOS have been limited to minor service contracts.
These contracts include standard activities such as labour hire, security, messing and accommodation, general maintenance, logistics, and minor equipment hires. Major contracts were owned by non-LANCOS.
The OTML is now exploring opportunities to expand the scope and venture into higher-value contracts such as leasing of mining fleet, warehousing, aircraft charter, mine and exploration drilling and potentially contract mining in the future which are classified as major contracts.
In the recent past, OTML has been able to outsource and award the following major contracts to LANCOS:
- Tabubil Development Corporation (TDC) Ltd, a subsidiary of Mineral Resources Star Mountain Group (MRSM), acquired a 51.24% stake in Pacific Direct, the current operator of OTML’s charter services. TDC is now the majority shareholder in Pacific Direct.
- Mineral Resources CMCA entered into a lease Agreement with OTML to supply 300 Light Vehicles (LV’s) to the company.
- OTML outsourced its Linehaul and Bus Services and its Workshop 1 Maintenance team to its Umbrella Company Milum Services Limited on 9th May 2023.
OTML continues to review its business functions and have ongoing discussions for LANCOS to participate more in OTML’s businesses.
