Mineral Resources Development Company Limited (MRDC) is registered under the Companies Act 1997 and is wholly owned by the State. The Prime Minister is the Trustee Shareholder. The Board currently consists of the Secretaries for the Departments of Treasury, Petroleum, and Mineral Policy & Geo-Hazard Management, the Managing Director as ex-officio directors and four independent directors. The Managing Director is the only executive director while the others are non-executive directors.
There is no specific enabling legislation for MRDC. Under the company constitution the Board of Directors is responsible for the management, supervision and direction of the Company.
MRDC is mandated by the Oil and Gas Act 1998 to manage project benefits which are held in trusts by corporate trustees which are subsidiaries of MRDC.
For the mining sector, the Mining Act does not give a specific mandate to MRDC to manage project benefits for mining project areas. Instead, various Government directives and policies and agreements enable MRDC to manage the benefits which are derived from mining projects for the project area landowners as well as the provincial governments. The benefits from Mining projects are held by a corporate trustee which is managed by MRDC.
The corporate trustees under MRDC management have an investment mandate by utilizing a certain percentage of the trust funds to investment. The Board of each corporate trustee has the sole authority to make the investment decisions based on proper considerations. MRDC’s role is to implement the investment decisions and then monitor the performance of the investment and make appropriate recommendations to the Board. MRDC also provides other corporate and financial management services to the corporate trustees.