Mineral Resources Development Company Limited (MRDC) was established in 1975 and is 100% owned by the
Government of Papua New Guinea
The politics of Papua New Guinea takes place in a framework of a parliamentary representative democratic multi-party system, whereby the prime minister is the head of government. Papua New Guinea is an independent Commonwealth realm, with the mo ...
.
It was initially established as the State Nominee to acquire the State and Landowner equity interests in mining and petroleum projects and to manage the equity funds for landowner companies from the major resource development areas of PNG. However, the State's equity has since been transferred to Petromin PNG Holdings Ltd, so the focus of MRDC is now the management of the Landowner equity interests in both mining and petroleum projects.
MRDC is governed by a board of directors, which is chaired b
Isacc Lupariby virtue of his position as 'Chief Secretary' of the State. Since March 2008, the Managing Director of MRDC has bee
Augustine Mano In October 2011, Mano's appointment was terminated by acting Prime Minister
Belden Namah
Belden Namah (born 30 December 1969) is a Papua New Guinea politician. He is a Member of the National Parliament of Papua New Guinea for the Papua New Guinea Party, representing Vanimo-Green since 2007. He served in Cabinet from 2007 to 2010 ...
, upon allegations that the MRDC had made improper investments under his management. However, Mano was reinstated a week later by Prime Minister
Peter O'Neill
Peter Charles Paire O'Neill (born 13 February 1965) is a Papua New Guinean politician who served as the seventh Prime Minister of Papua New Guinea from 2011 to 2019. From 2002 until the present he served as Member of Parliament for Ialibu-Pan ...
.
History
The major interests of MRDC were partially privatised in 1996, through the creation of
Orogen Minerals Limited
An orogenic belt, or orogen, is a zone of Earth's crust affected by orogeny. An orogenic belt develops when a continental plate crumples and is uplifted to form one or more mountain ranges; this involves a series of geological processes collectiv ...
(OML), of which the MRDC holds a 51% controlling shareholding. In April 2002, Orogen merged with
Oil Search Limited
Oil Search was the largest oil and gas exploration and development company incorporated in Papua New Guinea, which operates all of Papua New Guinea's oilfields. In December 2021, it merged with the Australian company Santos.
History
Oil Searc ...
(OSL), but MRDC retained an 18.1% stake in the new company. OSL is PNG's largest oil and gas producer.
MRDC was again restructured in 2007, with the formation of Petromin PNG Holdings Limited, which took control of the last State asset, the 20.5% equity interest in the Moran Petroleum Project. As a result of this restructuring, MRDC's chief role became the management of Landowner and Provincial Government interests.
Investments and subsidiaries
MRDC's combined group investment portfolio increased from K678.95 million in 2007 to K1,021.7 billion in December 2010.
MRDC Group holds the following Interests of Landowners and Provincial Governments in Mining and Petroleum Projects in PNG.
Mining projects
Mineral Resources Star Mountains Ltd – 3.05% equity for Landowners
k Tedi Mine
Mineral Resources Ok Tedi No. 2 Ltd – 3.05% equity for Fly River PG
k Tedi Mine
Mineral Resources Enga Ltd – 5% equity for Enga PG & Landowners
orgera Mine
Mineral Resources Ramu Ltd – 2.5 equity %
amu Mine
Mineral Resources Madang Ltd – 2.5% equity for Landowners
amu Mine
Oil projects
Petroleum Resources Kutubu Ltd – 6.75% equity and 2% royalty
utubu Oil Project
Petroleum Resources Gobe Ltd – 2% equity and 2% royalty
obe Oil Project
Petroleum Resources Moran Ltd – 2% equity and 2% royalty
oran Oil Project
Gas projects (PNG LNG)
Gas Resources Gigira Ltd – 1.126503% equity and 2% royalty
Gas Resources Hides No. 4 Ltd – 0.225353% and 2% royalty
Gas Resources Juha No. 1 – Ltd – 0.132419% and 2% royalty
Gas Resources Angore Ltd – 0.132747% and 2% royalty
Petroleum Resources Kutubu Ltd – 1.143959% and 2% royalty
Petroleum Resources Gobe Ltd – 0.023671% and 2% royalty
Petroleum Resources Moran Ltd – 0.019874% and 2% royalty
Gas Resources North West Moran Ltd – 0.000482% equity and 2% royalty
Gas Resources Plant Ltd – 0.0448% and 2% royalty
Gas Resources Pipeline Ltd – 0.0448% and 2% royalty
Controversies
In September 2011, Prime Minister
Peter O'Neill
Peter Charles Paire O'Neill (born 13 February 1965) is a Papua New Guinean politician who served as the seventh Prime Minister of Papua New Guinea from 2011 to 2019. From 2002 until the present he served as Member of Parliament for Ialibu-Pan ...
directed the Attorney General
Allan Marat
Allan S. M. Marat CBE (born 28 September 1954) is a Papua New Guinean politician. He served as Minister for Justice and Attorney General in Prime Minister Michael Somare's Cabinet from August 2007 to May 2010. In May 2010, he publicly stated that ...
to investigate allegations that the MDRC had squandered Landowners' monies through imprudent and improper investments. The allegations include the purchase of a 50% stake in a helicopter company for PGK70 million, which appeared to have an actual value of PGK30 million.
The MDRC has denied any involvement in corrupt payments or deals.
References
{{reflist
Mining in Papua New Guinea
Government of Papua New Guinea
Organisations based in Papua New Guinea
Non-renewable resource companies established in 1975
1975 establishments in Papua New Guinea