02 Dec 2021
As a vital partner to the resources sector, the Mineral Resources Development Corporation (MRDC) has, over the years, diversified its focus on national wealth creation – both for landowners as project beneficiaries in the resource industry, and for the national economy.
MRDC Managing Director, Augustine Mano, told the 2021 PNG Mining and Petroleum Conference & Exhibition, that the last two years had been challenging, because of the COVID-19 pandemic.
“MRDC has a long association with the industry, representing landowners in the oil, gas and mining projects throughout the country.”
· MRDC’s main function is to manage all its subsidiaries (Corporate Trustees)
· MRDC holds the shares in trust for project beneficiaries
· MRDC does not receive any funding support from the National Government
· MRDC’s revenue sources include management fees, and MRDC’s own investments
Petroleum & Mining Project Benefits (equity & royalty)
· By law or agreements, the project benefits and the interest in the respective project licenses are received and held by the Corporate Trustees.
· The Boards of the Corporate Trustees have exclusive control and management of the Trustee company and its assets. MRDC has no powers to spend those funds without respective board’s approval.
· The funds held in trust by the Corporate Trustees are not public funds; they belong to the project area landowners and provincial governments identified in accordance with the law.
Pillars of wealth creation
1. Beneficiaries – Community Projects, Dividend Payments, Royalty Payments, Scholarships, Community Donations, which result in better education, improved health, enhanced agriculture and promoting of SMEs
2. Corporate Trustee – Manages and invests the Resource Wealth to ensure long-term sustainable wealth for beneficiaries and the nation.
3. National Economy – Long term investments targeting sustainable capital growth and dividend income after project life through employment creation, tax income, spin off businesses and GDP Growth
Measuring sustainable wealth creation
“True wealth creation is measured when long term investments made using resource funds are able to sustain beneficiaries beyond the life of a project”
100% Investment Subsidiaries
1. Dirio Gas & Power Company
2. Pacific Property Trust
3. Star Mountain Plaza
4. Star Mountain Service Station Ltd
5. Coleman Properties
6. Pearl Resort
7. Other Properties
MRDC is a leader in multi-sectoral benchmark investments, contributing to National Economic growth through employment generation, tax generation and spin-off businesses.
Existing Challenges remainand we are working towards addressing them:
• Clear separation between Trustee and Fund Manager
• Clear regulatory framework like the Superannuation Industry
• Clan vetting
• Implementing Community Based Projects
• Managing Investments and Operations during COVID 19
• Major economic impact projects like Porgera, Papua and P’ynang LNG, and Wafi-Golpu mine will stimulate business and economic growth