I can't help thinking about the huge copper and gold asset right on our doorstep. The Panguna mine in Bougainville. For those who are unaware of the chequed history, the Bougainville locals blew up the transmission lines in 1989 as they believed they were not benefitting from the royalties flowing to PNG. BOC which was a very wealthy company was majority owned by RIO. The PNG government continued to tax BOC as an operating mine for decades until it essentially ran out of money. It then took the mining lease off BOC which resulted in RIO donating its shares ensuring that the PNG government and the autonomous Bougainville authority ended up with around 34% each (as I recall). BOC has recently been granted access to the site the determine how much Cu and Au is still in the ground. Quite a lot as I understand. However no lease has been granted and BOC has no money and little expertise. It would need a big company to be engaged if mining was to restart. RIO has not been forgiven by the locals who blame them for environmental damage. My recollections.
BHP won't have forgotten their experience with OK Tedi where the PNG goverment were in partnership. I am guessing that BHP won't want to get involved with Panguna even if invited. Pity with such a great resource. I hope a deal is not done with China, but it wouldn't surprise me if it was. My thoughts.
BHP Price at posting:
$44.51 Sentiment: None Disclosure: Not Held
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