Full throttle for PNG mining lynchpin

Cummins has long played a key role at the OK Tedi copper and gold mine in Papua New Guinea which is commissioning a new haul truck fleet in 2025.

Cummins has a long-established relationship with OK Tedi Mining Ltd (OTML) based on trust, service support and product reliability.

In fact, high horsepower Cummins engines have had a presence at the mine for over 30 years, providing high productivity in critical mining equipment.

The first of 15 new haul trucks from XCMG, commissioned early in 2025, are Cummins-powered and will set new standards of efficiency for the mine. 

Up to 240,000 tonnes of overburden are mined each day from a pit covering about 2.6 square kilometres. In addition, around 60,000 tonnes of ore are mined each day and delivered to the mill for processing.

Milestones

The history behind OK Tedi and its importance to PNG's development is a story of trials and triumphs.

OTML was established in 1981 to mine the Mt Fubilan copper-gold ore body discovered in the Star Mountains - near the headwaters of the OK Tedi River - in the Western Province of PNG.

This followed the signing of an agreement between the PNG Government and a consortium headed by BHP.

Mt Fubilan was described as a copper mountain with a gold cap after exploratory drilling began in the area in the 1970s. At the time it was believed to be the largest copper deposit in the world.

OTML has come a long way since first production in 1984, with some impressive milestones achieved.

Over these 40 years, the company has mined 5.4 million tonnes of copper, 16.4 million ounces of gold an 38.1 million ounces of silver from the open-cut operation. 

Mine life to 2050

OTML became a 100 percent Papua New Guinea entity in 2012 and now has in-principle agreement to extend mine life to 2050.

The company has been a vital driver of PNG's development.

By 2010, OTM was the largest single contributor to PNG's tax revenue. Over the next 26 years to 2050, the company is projected to generate US$8.5 billion in social benefits including taxes, royalties and dividend payments.

The company has had its fair share of challenges over time, addressing environmental and social impacts.

Massive steps have been taken over the years to improve rehabilitation operations as well as environmental monitoring and mitigation.

The next five years are considered to be a transformational period as OTML reinvigorates the business to ensure longevity and sustainability.

To achieve this goal, the Growth 2050 strategy has been developed with significant investment to extend mine life to 2050 and beyond.

New haul truck fleet

Today, six Cat 6050 excavators, each with dual 38-litre V12 Cummins KTTA38 engines, are the backbone of the operation and are supported with parts and service from Cummins Lae.

A new contractor-owned Hitachi EX1200 excavator with a Cummins QSK23 rated at 760 hp is also joining the fleet.

The first five of 15 new XDE260, 230-tonne haul trucks from XCMG, powered by Tier 2 Cummins QSK60 MCRS engines rated at 2,500 hp, will also enter service at OK Tedi early in 2025.

Cummins is the only global company involved in the mining industry in PNG that owns and runs its branches.

"One of the key reasons customers prefer using our product is because they're dealing directly with Cummins, not through a dealership, says David Leach, general manager of Cummins PNG.

Cummins employs 45 nationals in PNG who work out of two branch locations, Port Moresby and Lae, and most are involved in workshop and field service technical roles.

When rebuilt engines are required for the OK Tedi operation, they are supplied by the Cummins Master Rebuild Centre in Brisbane which has a world-class reputation for quality through best practice manufacturing and planning.

A parts supply and pricing agreement is also in place with Cummins.

Developing apprentices is a key to building a sustainable business, and Cummins PNG currently has six apprentices. "We have a lot of applications for our apprenticeships because Cummins is recognized in the community as being a good employer and good trainer, said Leach.

"Safety training is also crucial to the success of our business. Our 'safety first' culture is reflected in our record of zero incidents over the last two years."