reopening on the agenda of investors conferenc

Prospects for reopening the mine will be among the issues discussed at a large conference on investment in PNG, to be held by the next week.

Finally a good article that summarizes the situation very nicely. Seems more investors might get a smell next week ;-)))

http://www.theaustralian.com.au/business/bougainville-coppers-hopes-bloom/story-e6frg8zx-1225964135560

Bougainville Copper's hopes bloom

Rowan Callick From: The Australian December 02, 2010 12:00AM

BOUGAINVILLE Copper's share price soars as talks to unite the landowners of the mine site under a single umbrella company proceede.
If successful, the talks will streamline negotiations for the reopening of the mine on Bougainville island in Papua New Guinea.

On Friday, the share price of the Rio Tinto-controlled company rose 4.08 per cent, and on Monday 4.58 per cent.

The shares have doubled in price since August and tripled since May, even though the mine has not operated for 21 years.

The new president of the Autonomous Bougainville Government, veteran politician and former Catholic priest John Momis, told The National newspaper that discussions between landowners were going well. "I am satisfied we are doing OK. We need to get the mine reopened. It will kickstart developments in Bougainville," he said.


The copper mine, at Panguna, provided about 20 per cent of government revenue during the 1970s and 1980s. It closed in 1989 as the island disintegrated into civil war, in part due to disagreements about the mine's impact and the way royalties were shared. Rio Tinto owns 53.58 per cent of the company. The PNG government has a 19.06 per cent stake, and the other 27.36 per cent is held by public shareholders.

"With copper reserves estimated at almost 3 million tonnes and gold production in the range of 400,000 ounces per annum, Panguna is one of the world's largest potential producers of both metals," Bougainville Copper says.

"It is expected that the Bougainville Copper Agreement renegotiation will be actively pursued towards the end of 2010."

The company said market values for both copper and gold were higher than at the time of mine's closure.

"The political situation within the Autonomous Bougainville Region has stabilised, and there is considerable appetite for development being expressed by the people," Bougainville Copper said. "The board is operating a comprehensive rolling plan with the vision of returning to active exploration and profitable mining."

Prospects for reopening the mine will be among the issues discussed at a large conference on investment in PNG, to be held by the PNG Chamber of Mines and Petroleum in Sydney next week.