bcl is the best hope

Mr Momis told the Australia PNG Business Forum earlier this week that extensive consultations are underway and that landowers have indicated that they prefer Bougainville Copper.

Presenter: Jemima Garrett.

Speakers: John Momis, President, Bougainville

Peter Taylor, Executive Chairman, Bougainville Copper Ltd

GARRETT: Bougainville is due to hold a referendum on Independence from Papua New Guinea before mid-2020 but for there to be a real choice the Austonomous Bougainville Government must have an independent source of revenue.

For many on Bougainville, including President John Momis, the massive Panguna copper mine owned by Rio-Tinto subsidiary BCL is the best hope.

Mr Momis says altho he initially sought other developers, he and his people are now backing Bougainville copper.

MOMIS: The leaders of the landowers from the mine have consistently indicated that they prefer to deal with BCL rather than a new potential operator. They talk of preferring the devil they know and not a new devil. In large part they mean that they achknowledge that BCL both accepts that it played a role in what went wrong at Panguna and is prepared to contribute to finding workable solutions. They fear that a new developer may not have the same attitude.

GARRETT: Back in 1975 the Panguna copper mine was the revenue source that bank-rolled Papua New Guinea's independence from Australia.

The agreement to get it up and running in time was rushed and its failure to deliver benefits to landowners led to the grievances behind the civil war.

This time President Momis is determined to get it right.

He has put strict conditions on approval of the mine and says Bougainville Copper and its 53 per cent shareholder, Rio Tinto, cannot assume they will be the operator.

While BCL's Executive Chairman Peter Taylor is not too keen on being seen as the 'preferred devil' he is not worried the company will be ousted.

TAYLOR: There are criteria that he expects any potential operator to meet. We think we will be in good shape to meet those criteria so at that level I am not concerned.

GARRETT: President Momis says any mining development must provide opportunities for as many Bougainvilleans as possible, and it must spread the opportunities equitably and ensure participation of Bougainvilleans in decision-making. What are you prepared to do to make that happen?

TAYLOR: Well, I certainly share that view. We will certainly give priority to Bougainvilleans. In terms of training we might do for potential workers in the future, we will employ as many Bougainvilleans as possible. That is common sense any way. You would rather have local employees than outsiders because it is more economic to do it that way, but none the less it also helps us be part of the community rather than just be an operation in the community.

GARRETT: President Momis is working hard to diversify Bougainville's economy.

Crops such as cocoa are now providing substantial income for Bougainvilleans but not the tax revenue needed for Bougainville to be self-reliant.

Mr Momis sees Panguna having an impact well beyond mining.

MOMIS: Panguna mine will be like a magnet that attracts a lot of other businesses and it only needs Bougainville Copper landowners and ABG to agree and that will attract a lot of these companies to come and generate income for the people and revenue for the government.

GARRETT: At this stage how do you rate Bougainville copper's approach to the negotiations?

MOMIS: BCL's approach to the negotiations I think has been quite good. We don't know what Rio Tinto will do because they are so remote from us but I must say Bougainville Copper's approach is very good and I am quite happy that we are collaborating and I think we sort of share in a general way a common vision to generate revenue for Bougainville, of course revenue for the company, and do things under a new paradigm where the ABG (Autonomous Bougainville Government) and the landowners are not just treated as marginalised units.

GARRETT: Is it time Rio Tinto took more interest in Bougainville?

MOMIS: I think so! And I think Rio Tinto is probably being consistently and systematically briefed by BCL. We haven't heard anything that might mitigate against the process proceeding towards reaching a conclusion, in fact, we are very happy with Bougainville Copper's approach so far.