Papua New Guinean Landowners Buy Three DHC-8-100s

By Andrew Curran.

Local Papua New Guinean landowners have acquired three DHC-8-100 aircraft through the Ok Tedi Landowners Royalty Investment Trust (OTLRIT).

The aircraft include 36-year-old P2-NAT (msn 170), 35-year-old P2-NAX (msn 229), and the almost 34-year-old P2-NAZ (msn 316). For some time, Ok Tedi Mining has leased all three aircraft from Asia Pacific Airlines. The miner subsequently contracted the aircraft’s operations to a local logistics company, Milum Group.  

The trust, which collects royalties from Ok Tedi on behalf of 12 villages in Papua New Guinea’s Star Mountain region, paid around PGK30 million (USD7.29 million) for the planes. Milum, which has close links with OTLRIT, will continue to operate the aircraft for Ok Tedi, rebranding the service to Milum Aviation. Aircraft management, servicing, and maintenance will continue to be handled by Pacific Direct Limited, a local aviation business.

“The idea is to collect royalties from Ok Tedi and invest them for the future of the beneficiaries,” said Aubrey DeSouza, CEO of Milum Group and the Ok Tedi Trust, during the official acquisition announcement in August. “Our main purpose is investment in quality assets.”

ADS-B flight tracking websites show the three aircraft are in service and based at Tabubil Airport (TBG) in western Papua New Guinea, where the Ok Tedi Mining head office is located. The company’s copper and gold mines are around 11 kilometres from the purpose-built town.

The aircraft operate fly-in-fly-out flights to and from Port Moresby (POM), Mount Hagen (HGU), Goroka (GKA), Cairns (CNS), and Horn Island (HID), among other airports.

Ok Tedi pays the OTLRIT royalties for mining rights. The trust has fattened in recent years and is now paying out around PGK5 million (USD1.2 million) in dividends. OTLRIT has some aircraft ownership experience. It first acquired a plane in 2004, a Twin Otter that it leased to PNG Air. The trust later sold that aircraft but has since ploughed money into hotels, commercial buildings, stocks, and shares, building an asset base of around PGK200 million (USD48.6 million).

The OTLRIT is now eyeing another two Dash 8 aircraft, specifically, a pair of DHC-8-Q300s formerly operated by Qantas but recently sold to Canadian lessor AvMax. The plan is to task one of the Q300s to domestic routes while the second will fly in Cairns and Brisbane (BNE). Delivery of both aircraft is expected this month.

Ok Tedi Mining is a big company in Papua New Guinea, a major employer and an enabler of national and individual prosperity.”

“The acquisition (of the aircraft) marks a significant milestone in our journey to empower landowner companies to become profitable and sustainable enterprises,” said CEO Kedi Ilimbit.

“This investment is part of our broader vision to support landowner companies in securing tier 1 contracts,” he added. “We want to see our landowners involved in major business areas such as mining fleet leasing, warehousing, aircraft charter, drilling, and even contract mining in the future.”

Meanwhile, Pacific Direct CEO Darren Moncrieff says his company will start cadet pilot and cadet cabin crew training programs in 2026, targeting local villagers, aiming to funnel job ready employees to Milum Aviation and other local airlines.

 Photo: BriYYZ via Flicker