MRDC clarifies position on royalty and equity benefits

By
Joel Kuta Andrew
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“Taking out its assets and giving it to MRDC is like giving it to five or so provinces. What’s the equity in that? Shouldn’t you rather leave it for the benefit of the whole country?", Mr Kua said. Pictured is MRDC Haus at Downtown Port Moresby.
Pictured is MRDC Haus at Downtown Port Moresby.

The Mineral Resources Development Company (MRDC) notes concerns raised on social media pertaining to outstanding royalty and equity payments for certain landowner groups in the PNG LNG Project.

MRDC confirms that royalty and equity benefits for Hides PDL1 landowners in Hela Province have not been paid due to a court order stopping the Bank Account Opening process.

MRDC commenced the process in April 2024 but could not complete it due to ongoing disputes amongst clan leaders and the court order taken out by Landowners (Walape Mara OS (JR) No.198 of 2019) restraining MRDC  from opening the clan bank accounts in PDL1.

State lawyers have gone to court to set aside the court order so MRDC can complete the Bank Account Opening and Directors Election process and have the benefits paid.

For Hides PDL7 in Hela, royalty benefits for 2014 – 2021, and equity benefits for 2014 – 2017 have been paid. The royalty (2022 – current) and equity (2018 – current) benefits will be paid once the Central Bank of PNG releases the royalty payments to MRDC.

This also includes the Pipeline and Plant Site landowners.

MRDC is currently working with National Petroleum Authority, Department of Finance for the Central Bank to release the royalty benefits so we can make the royalty and equity payments together, as is the process for PDL7, pipeline and plant site landowners.

MRDC urges the clan leaders of PDL1 involved in the dispute in court to resolve their differences amicably so their benefits can be released to them.

Beneficiaries in the villages are frustrated because they have been waiting since 2014 to receive their rightful benefits. Some elders have passed on. The process (bank account opening and director  election) is 80% complete but is being delayed by the court order. Clan leaders involved in the dispute need to resolve their difference quickly so we can complete the process for PDL1 and have the  benefits released.

MRDC is liaising with the BPNG to have the royalty payments for PDL7, Pipeline and Plant Site released so the benefits can be distributed to the landowners.

PNG LNG project royalty and equity benefits for PDL 2 (Kutubu), and PDL 3 & 4 (Gobe) have also been withheld pending the resolution of a number of disputes.