Mineral Resources Development Company Limited was established in 1975 and is 100% owned by the Government of Papua New Guinea. 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 by by virtue of his position as 'Chief Secretary' of the State. Since March 2008, the Managing Director of MRDC has been . In October 2011, Mano's appointment was terminated by acting Prime MinisterBelden Namah, upon allegations that the MRDC had made improper investments under his management. However, Mano was reinstated a week later by Prime MinisterPeter O'Neill.
History
The major interests of MRDC were partially privatised in 1996, through the creation of Orogen Minerals Limited, of which the MRDC holds a 51% controlling shareholding. In April 2002, Orogen merged with Oil Search Limited, 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 Mineral Resources Ok Tedi No. 2 Ltd – 3.05% equity for Fly River PG Mineral Resources Enga Ltd – 5% equity for Enga PG & Landowners Mineral Resources Ramu Ltd – 2.5 equity % Mineral Resources Madang Ltd – 2.5% equity for Landowners
''Oil Projects''
Petroleum Resources Kutubu Ltd – 6.75% equity and 2% royalty Petroleum Resources Gobe Ltd – 2% equity and 2% royalty Petroleum Resources Moran Ltd – 2% equity and 2% royalty
''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 directed the Attorney GeneralAllan Marat 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.
