LANDOWNERS at the Ok Tedi mine in Western province have acquired a hotel in
This latest acquisition of the four-and-a-half star hotel brings to total value of K56 million in assets currently owned by the 5,000-plus landowners in the 12 mining villages.
The purchase of the Quality Inn Airport Heritage hotel has been made possible through royalty proceeds from Ok Tedi Mining Ltd (OTML) paid to the Ok Tedi Royalty Investment Trust (Royalty Trust).
The Royalty Trust is one of several landowner trusts that OTML administers for the mine- impacted communities.
The Royalty Trust operates to invest funds from the royalties that are paid monthly by OTML in investments which provide a good rate of return and capital.
The hotel has 40 deluxe and executive suites and is located centrally between
It has fully air-conditioned rooms with cable television, internet access, mini bars and private balconies.
Trust administrator of the Royalty Trust Aubrey De Souza said the hotel was acquired after a vigorous due diligence process.
“The hotel is performing really well … it is having nearly 90% to 100% occupancy every weekday,” he said.
He said the acquisition of the hotel was done as a result of a strategic plan approved three years ago by the trustees of the Royalty Trust to diversify the Royalty Trust’s investments in a balanced portfolio mainly in property, shares and cash in PNG and overseas.
“We thought it would fit our strategic plan for our properties to be also offshore.
“So that is why we were looking for properties in
“The strategic plan is that by 2013, which is the scheduled mine closure date, we are targeting to have K100 million worth of investments,” he added.
Currently, the 12 mining villages have properties in
They also have shares in companies listed on the Port Moresby Stock Exchange worth K3 million and also on the Australian Stock Exchange (A$3 million or K7 million).
They also have a twin otter aircraft, leased to Airlines PNG.
“We are expecting higher returns from those investments. And we are securing these monies for the landowners’ future and that’s our plan,” he said.
Mr De Souza added that the Royalty Trust was a model for other trusts in PNG to follow.