Rio Meets Papua New Guinea Minister on Mining Issues (Update1) March 14 (Bloomberg) -- Rio Tinto Group, the world's third- largest mining company, met with Papua New Guinea's mining minister in London amid speculation that the nation's abandoned Panguna copper mine may be reopened.
The mine, which shut in 1989, belongs to Papua New Guinea- based Bougainville Copper Ltd., an Australian company controlled by Rio. Shares of Bougainville jumped 16 cents, or 26 percent, to 77 on the Australian Stock Exchange today, a six-week high.
The meeting today between Rio and Mining Minister Sam Akoitai ``was about a general update in the mining sector in Papua New Guinea,'' Maria Darby-Walker, a London-based Rio spokeswoman, said in an interview. ``No specific project was discussed.''
Panguna was abandoned after armed attacks caused Rio to withdraw staff. It is the only asset the London-based miner has in Papua New Guinea. The mine is probably capable of producing 180,000 metric tons of copper and 15 tons of gold annually, according to Bougainville Copper's Web site. Darby-Walker declined to comment on whether Rio wants to reopen or sell the mine.
Bougainville ``is a very complex issue,'' Leigh Clifford, Rio chief executive officer, said Aug. 3. ``We have not had access to the mining area since we left in 1989.'' There are ``many other issues'' for the company to consider regarding the future of Bougainville apart from rising copper prices, he said.
The Papua New Guinea High Commission in London declined to confirm the minister's visit.
Bougainville shares soared in July after the death of Francis Ona, who launched a war for the island's independence.
The price of copper has tripled since 2002 as demand outpaced output. It reached a record $5,100 a ton Feb. 7.
To contact the reporter on this story: Chanyaporn Chanjaroen in London at cchanjaroen@@bloomberg.net. Last Updated: March 14, 2006 12:20 EST
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