This year, Mineral Resources Development Company (MRDC) will mark 50 years as the manager of the benefits paid to landowners and provinces from Papua New Guinea’s resources projects. In this exclusive interview with Business Advantage PNG, Managing Director Augustine Mano provides an update on the flagship Star Mountain Plaza project and other investment plans.

Augustine Mano, Managing Director of MRDC. Credit: BAI.

BAPNG: You officially opened stage two of the Star Mountain Plaza development – the Hilton Residences – in 2024. How has the response been?

Augustine Mano (AM): The response from the market for stage two has been excellent.

Stage three will commence in 2025. At the moment, we have seven stages of development, all of which complement each other. We’ll have restaurants, cinemas, office space, and a water park.

‘We’re trying to bring in other world-class retail operators like Hilton… it’s part of our contribution towards modernising the country.’

When you think of food, family entertainment, leisure, you will only think of Star Mountain Plaza.

We’re also looking at putting in an international school and a residential area with townhouse-style apartments.

BAPNG: How would you describe MRDC’s investment vision?

AM: At the MRDC, we think of investment with a long-term view.

A good example is stages one and two of Star Mountain Plaza. The concept started in 2012. We started construction in 2014 and now, after 10 years, the Hotel and the apartments are doing better than expected.

If you take a long-term view with all the [forthcoming] resources projects – Papua LNG, P’nyang, Wafi Golpu – not to mention the emerging middle class, Star Mountain Plaza is catering to that need.

We’re bringing in world-class retail operators like Hilton, not only to raise the bar in the commercial precinct, but we are also contributing towards modernising the country.

You need good international private sector investment to meet world-class standards.

MRDC wants to be a leader in all the sectors of the economy. That’s why we have also invested in the power business [through Dirio Gas & Power], in the aviation sector with PNG Air, in the medical sector with Pacific International Hospital, real estate, and the financial sector.

View from outside MRDC’s flagship Star Mountain Plaza. Credit: BAI

BAPNG: What else are you planning to do to help develop the regional areas of PNG?

AM: We balance investment to secure the future with developing vital infrastructure projects in communities where our beneficiaries live to enhance their quality of life.

Last year, we spent almost K40 million on our community programs, more than half of it to modernise schools in these remote project areas.

We recently brought a virtual library to the Kikori Secondary School [in Kikori, Gulf province], where they didn’t have access to modern educational facilities. We have also installed a solar power system there.

Some of these project areas haven’t had classrooms since independence. To give you an example, first oil was discovered in Kutubu [in Southern Highlands Province] in 1992. And if you looked at the infrastructure around there, despite government levies, the infrastructure was almost non-existent. We took the bold step of investing in building a brand-new high school. The school will enrol its first students next year.

We are also working towards finding alternate sources of revenue. We’ve started off with introducing cocoa in Kikori. Our directors are training and empowering the people to be involved in this pilot project.

We’re looking at extending it to places like Western Province. I’m hopeful that once [the landowners] see the benefits, they will see an alternate source of revenue rather than depending on royalty and equity payments.

BAPNG: In your opinion, what are the best business models for power generation developments?

AM: I think you need good partnerships. In Kikori, the National Energy Authority has given our power company Dirio a license to operate and sell power. We will build a solar power plant which Dirio will operate.

It will provide very affordable power, it will be environmentally friendly, and be very sustainable for our users.

BAPNG: How are you changing the culture in your organisation?

AM: I think one of the ways is having good partnerships with international brands. Papua New Guineans can learn from them about the culture of running a business and meeting world’s best practices.

When it comes to oil and gas, ExxonMobil is the number one. When it comes to hospitality, Hilton is number one. We want to learn from them, their culture and their experience.

That’s the only way we can change our mindset to think globally and be competitive.