Mineral resource company moves into electrification business

MINERAL Resources Development Company (MRDC) has moved into the electrification space in efforts to support the Government’s local content policy, according to managing director Augustine Mano.
Speaking during the PNG Mining and Petroleum Conference in Port Moresby yesterday, Mano said they chose power because access to cheap and reliable power could improve lives of the people including landowners of the petroleum and mining project impacted areas.
Mano said MRDC was trying to address landowner participation across the value chain.
“The reason we chose power is because it has a positive impact on our beneficiaries and it can improve the quality of life,” he said.
“Not only for the country and provinces but also for the landowners.”
While providing updates of the new gas station, Dirio Gas and Power Company, Mano said it was wholly owned by provincial governments of the four impacted provinces of the PNG LNG project: Hela, Southern Highlands, Gulf and Central.
Mano said that Dirio would give access to cheaper and reliable locally available gas.
“There won’t be another good opportunity for landowners and provincial governments to enter this business another time because we have three big projects happening at the same time: the PNG LNG, Papua LNG and the P’nyang gas projects,” he said.
“And if we are not in that business, I think, with due respect, NiuPower with Kumul Petroleum and Oil Search will be in that business.
“So for the provincial governments and landowners, it is my responsibility to make sure that we are in that space.” Mano said with the current capacity of 300 megawatts of power being supplied across the country, the market for them was to replace the more expensive diesel-powered systems.
“We are not trying to replace hydro or other non-renewable resources. And that is an opportunity for us in that space,” he said.
“The most important thing is that PNG is a growing economy and we have signed a PPA (power purchase agreement) with PNG Power Ltd and that gives us the opportunity to grow in that business.”