From K500 Million to K14.5 Billion: Marape Tables Audited Accounts Celebrating the Historic Rise of MRDC
PORT MORESBY – Prime Minister Hon. James Marape today tabled the 2024 Audited Financial Accounts of the Mineral Resources Development Company Limited (MRDC) in Parliament, highlighting the company’s remarkable growth to K14.5 billion in assets while outlining the next phase of reforms to further strengthen governance, accountability and long-term wealth creation for Papua New Guinea’s resource project landowners.
The Prime Minister described MRDC’s growth over the past two decades as one of Papua New Guinea’s greatest corporate success stories.
“From managing assets worth approximately K500 million in 2007, MRDC has today grown into a K14.5 billion enterprise. This extraordinary transformation has been achieved in less than 20 years and demonstrates the value of disciplined investment, prudent financial management and a long-term vision for growing landowner wealth.
“This achievement belongs to our project area landowners, whose wealth has been carefully managed and expanded over the years.”
Prime Minister Marape commended the MRDC Board, management and staff for their stewardship of landowner investments and their success in diversifying into commercial investments beyond the traditional mining and petroleum sectors.
He also announced that the Government would proceed with the second phase of MRDC’s corporate reforms to position the organisation for even greater growth.
Audits Brought Up To Date
The Prime Minister said Parliament was today receiving MRDC’s 2024 audited financial statements in accordance with the law.
He noted that although the audit programme had been delayed by the COVID-19 pandemic and technical accounting challenges, MRDC had successfully completed all outstanding audits.
“I am pleased to report that the audits for MRDC and its subsidiaries are now complete up to 2024.
“Importantly, the audits covering the period 2020 to 2024 all received unqualified audit opinions, confirming that the accounts are properly maintained and free from material misstatement.”
He said this reflected MRDC’s commitment to transparency, accountability and sound corporate governance.
Building On A Strong Foundation
Prime Minister Marape noted that MRDC celebrated its 50th anniversary last year alongside Papua New Guinea’s 50th Independence Anniversary.
Established in 1975, MRDC has evolved from an exploration company into the country’s premier manager of landowner equity and benefit interests in major resource projects, including PNG LNG, Kutubu, Moran, Gobe, Ok Tedi, Porgera and Ramu Nickel.
Today, MRDC manages 22 companies comprising 15 subsidiaries and seven wholly owned investment companies.
Next Phase Of Reform
The Prime Minister said Government would now advance legislative reforms aimed at separating MRDC’s shareholder and corporate management functions.
He explained that while MRDC has successfully carried out both roles for many years, separating them would strengthen governance, improve accountability and establish clearer reporting lines without affecting the interests of project area landowners.
“The objective is simple: preserve what has made MRDC successful while strengthening governance for the future.”
Protecting Landowner Wealth
Prime Minister Marape reaffirmed that the Government remained committed to ensuring that all benefits generated from resource projects continue to be professionally managed for the benefit of project area landowners.
He said maintaining a consolidated investment structure provides economies of scale, reduces administrative costs, expands investment opportunities and ultimately generates greater returns for landowners while contributing to national economic growth.
“The future of MRDC is very bright.
“Our responsibility as Government is to ensure that this growing wealth continues to be protected, professionally managed and expanded for current and future generations of Papua New Guineans.”
ENDS
