PNG mining communities urged to benefit more through local businesses

Greater participation by landowner companies is central to ensuring PNG's mining wealth delivers lasting benefits to local communities, according to Ok Tedi Mining Limited.

The company shared its plans and community investment strategy during the opening of PNG Resource Week in Port Moresby on Monday, where leaders from the country's resource sector gathered for discussions on mining, energy and economic development.

 PNG mining communities urged to benefit more through local businesses

The annual event drew a large audience, including investors, exhibitors, government agencies, industry stakeholders, delegates and students eager to hear updates from some of PNG's largest resource companies.

Ok Tedi Mining Limited Economic Program Manager Steve Hoap said community-owned businesses continue to play an important role in the company's operations.

He said 49 landowner companies are currently contracted to supply goods and services to OTML, while Tier One contractors are generating an average turnover of K800 million each year.

Mr Hoap said OTML is continuing to invest in projects that will create long-term income for host communities. One of the largest is a K500 million fly-in fly-out accommodation village, which will be owned by the nine Community Mine Continuation Agreement regions together with Special Mining Lease and Lease for Mining Purpose villages.

He said the company is working towards increasing the use of local suppliers and contractors, with a target of achieving 80 per cent local procurement by 2030.

Mr Hoap acknowledged that reaching the target will require stronger governance, better compliance, improved management practices and changes to the current landowner company business model so that community businesses remain competitive and sustainable.

Throughout the conference, companies including Ok Tedi Mining Limited, Santos Ltd, ExxonMobil PNG Ltd, PNG Sustainable Development Program and the Ok Tedi Development Foundation outlined their work in resource development, infrastructure projects and community investment across the country.

"We operate with excellency maximising the value of our mineral resource in an environmentally responsible way to deliver sustainable economic and social benefit to our communities and people of Papua New Guinea. We give opportunities to our mining communities, that is mine landowners, settlement people, Kiunga, and Community Mine Continuation Agreement communities," Mr Hoap said.