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Resource companies in Papua New Guinea (PNG) aim to develop landowner companies capable of meeting governance and compliance requirements, being commercially viable and generating benefits beyond mine closure. This presentation will consider whether this aim has been achieved by the local business development (LBD) program associated with Ok Tedi mine in PNG. Ok Tedi Mining Limited (OTML) has made consistent effort in managing its LBD program over the last fifty years. The research explores the nature of the relationship between OTML and its local landowner companies, and examines the crucial role OTML’s Economic Program Department plays in supporting local business development.
Despite the efforts OTML has made in this area, the program has produced few landowner companies that could be considered both successful and sustainable. The local landowner companies that are considered successful do not necessarily have the capacity to generate long-term benefits for mine impacted communities beyond mine closure, and therefore could not be regarded as sustainable. This research makes an original contribution to understanding of Indigenous entrepreneurship in PNG’s resource sector by providing insight into PNG landowner company business practices. In addition, this pre-submission seminar highlights how resource companies manage the local business development function.