Water & Hydro
Projects
MMJV Hidden Valley: Contract Management & Procurement Review
The Hidden Valley Gold Mine, operated by Morobe Mining Joint Venture (MMJV) in Papua New Guinea (PNG), required a comprehensive review of its contract management and procurement processes. Flagstaff Consulting Group was engaged to assess, optimise, and restructure operational contracts, ensuring improved efficiency, cost control, and supplier engagement.
Project Detail
- Client: Morobe Mining Joint Venture (MMJV)
- Location: Morobe Province, Papua New Guinea
- Project Scope: Contract review, procurement strategy, and negotiations
Our Role
Flagstaff conducted an on-site assessment of all existing contracts, evaluating contract performance, compliance, and risk exposure. We also led a strategic procurement review for a new Maintenance & Repair Contract (MARC) with international suppliers.
Key Responsibilities
Operational Contract Review: Evaluated multiple contracts, including:
- MARC agreements (fleet maintenance and parts supply)
- Labour hire, construction, and transport contracts
- Exploration drilling and off-site lease agreements
Stakeholder Engagement: Conducted on-site interviews with contract users to assess service delivery and contractual alignment.
International Procurement & Negotiations: Reviewed supplier performance, identified gaps in service delivery, and facilitated new agreements.
Risk Mitigation & Governance: Addressed challenges related to PNG’s developing infrastructure, local workforce requirements, and multinational contract complexity.
Outcomes
Stronger Contract Governance: Implemented a structured approach to contract management, improving efficiency and supplier accountability.
Cost Savings & Optimisation: Renegotiated agreements to better reflect actual operational requirements and risk profiles.
Improved Supplier Relationships: Facilitated successful negotiations with international suppliers, ensuring better service delivery and value-for-money.
Flagstaff Consulting Group – Driving Strategic Contract & Procurement Solutions for the Mining Industry.