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MINEMAN MEDIA RELEASES

July 2016
Ok Tedi Mining Ltd outsources its sales and marketing administration functions to Mineman Managed Services

Ok Tedi Mining Limited has outsourced its sales and marketing administration activities under a long term contract to the Managed Services unit of Mineman Systems. The project went live on Monday 21st March 2016 and is the third Managed Services contract for Mineman Systems.
 
 
About Ok Tedi Mining Ltd
 
Ok Tedi Mining Limited (OTML) is a state-owned enterprise based in Tabubil, operating a large open-pit copper-gold-silver mine at Mt Fubilan in the Star Mountains of the Western Province of Papua New Guinea (PNG). OTML has been operating since 1984 and mining has been forecast to continue until at least 2025.
 
The Ok Tedi concentrator is capable of treating around 24 million tonnes of ore per annum, equivalent to 60,000 tons per day, producing up to 100,000 tonnes of copper and 400,000 ounces of gold, as metal contained in copper and gravity gold concentrates. 
 
A severe El Nino weather pattern, or "big dry", occurred in the second half of 2015. From August 2015 the resultant lack of rain in the Fly River catchment area halted the movement of the barges that resupply the operation with fuel and mine consumables. In normal weather the barges also move the concentrates to a silo vessel in the Gulf of Papua from where they are shipped to international markets. All production was suspended for seven months, eventually resuming in early March of 2016. The first export vessel for 2016 loaded and sailed ex Port Moresby, PNG on the 25th of March. 
 
 
About the project
 
Mineman Systems is the leading supplier of metal sales software and services to the global mining industry. The company has more recently established a Business Process Outsourcing (BPO) unit to provide metal sales administration services on the behalf of others. The unit is called Mineman Managed Services.
 
During the suspension, the management of OTML carried out a business process review to reset the company for long term viability. In early 2016 they took a decision to outsource their back office and marketing administration activities to Mineman Systems. The resulting operation, run by Mineman Systems on behalf of OTML is called Ok Tedi Managed Services, or OTMS.
 
The outsourcing arrangement has allowed the personnel remaining at Ok Tedi to focus on site activities, marketing strategy and customer relationships, unencumbered by the day-to-day tasks of data entry, process tracking, coordination of service providers, documentation, contract administration, Mark-to-Market valuations, cash-flow forecasting and related financials. 
 
Ok Tedi has been a client of Mineman Systems since August 2000. The existing Mineman application and database, previously run by the Ok Tedi Marketing team staff at Tabubil, was upgraded to Release 7 and relocated to Mineman Systems' cloud-based global infrastructure. The upgrade and relocation was completed in March 2016, and the OTMS team were ready for "go live" on Monday 21st March 2016, just before the first export vessel for 2016 loaded and sailed from Port Moresby, PNG.
 
The OTMS hub is located in the Manila office of Mineman Pacific Inc, in The Philippines. Its central location promotes faster co-ordination and delivery of shipping documentation to Ok Tedi's predominantly Far-East Asia customer base, removing the historical time delays in collating and physically forwarding documentation from the remote, mountainous mine site. The OTMS team provides reports and updates to OTML at agreed intervals. A structured electronic filing system and email account is shared by all stakeholders.
 
The OTMS hub includes a secure document storage facility into which all of OTML's historical shipment files are being relocated. The secure facility, located inside the Clarke airbase special economic zone is available to other Managed Services clients who wish to relocate their valuable shipment files.
 
The OTMS team updates the Mineman cloud-based database with the latest production and logistics data provided by OTML. Other data is generated by the OTMS team and by the associated shipping and service providers, and is updated by the team on a 24 hours per day, 6 days per week basis. Invoicing and associated shipping documentation is produced by the team as shipments are being readied, starting from planning and scheduling, preloading, export clearance, invoicing, assay exchange and final settlement. The team also tracks the billing and disbursements of expenses from the service providers and ensures that these providers are all paid on time. Potential discrepancies in weights and assays and other drivers of revenue are technically validated against proprietary industry benchmarks developed in-house from the Mineman Reference Database.
 
Mineman's industry experts are backed by the Mineman global infrastructure, the Mineman support organization, the benchmarking system and the advanced Mineman technology, which all together represents a unique initiative of industry best-practice and the highest standards of performance.
 
The Managed Services unit is integrated with the other Mineman offices thereby creating a global, virtual marketing administration team. This industry innovation allows Managed Services to generate documentation and invoices in the region most efficient for the client. For instance, for the first OTMS invoice on a 10,000 tonne shipment of copper concentrates, the BL's were cut in Melbourne and the insurance and other commercial documentation were generated locally and handled in Mineman's head office, connected to Mineman in the cloud. The document package was then couriered to an Australian bank, because for that particular shipment Australia was the best region to get the first payment into OTML's bank account in the fastest possible time. 
 
The innovation of the virtual marketing team allows the fastest possible turnaround and coordination of other key activities. Cash-flow forecasts are generated and checked in the office of Mineman Americas in Lima, Peru which allows this crucial process to be executed overnight and promptly presented to Ok Tedi management the following day. Extra reports and functionality are developed by Mineman India and the Development unit in Indonesia. 
 
Another innovation is Mineman's intelligent Task List technology which allows tight coordination between the parties associated with a shipment and associated transactions. Given that a typical sale can take several months to complete there are many tasks of all kinds to carry out at any one time. The Task List runs in the Mineman cloud and contains over 100 steps needed to progress a sale from inception through to settlement, each task driven by rules around key dates and changes in the Mineman database.  This system allows the team to track and anticipate tasks that need to be done by whom and by when, in real-time. The outcome is a smooth and efficient sales process on behalf of the client, Ok Tedi Mining Limited.
 
For more information contact Enquiries@mineman.com
 
 
Testimonial
 
Given Ok Tedi’s great experience with Mineman since 2000 in terms of industry leading software and customer focus, it was an easy decision to move to Mineman Managed Services when a restructured Ok Tedi business had to find an alternative for its sales and marketing administration. As expected the transition to Mineman Managed Services has been seamless and first class with an excellent level of planning and communication throughout which has seen shipments of Ok Tedi’s products performed flawlessly from the inception of OTMS.

Personally, I had expected a few hiccups for the initial few shipments but the professionalism, experience and thoroughness of the Mineman team saw the new process settle down much faster than I would have predicted. Communication between Ok Tedi Mining and OTMS has been outstanding, inclusive of weekly transactional meetings and monthly improvement meetings, and the overall proof of the success of the transition has been the acceptance of the new system by Ok Tedi’s customers with zero complaints.

For any company contemplating how to undertake sales and marketing administration into the future, Ok Tedi would have no hesitation in recommending the Mineman Managed Service product.

Garry Martin, Executive Manager – Marketing, Ok Tedi Mining Ltd]

 

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