akoitai in talks with rio tinto on lifting of expl

Come back to B’ville, gold explorers urged
Akoitai in talks with Rio Tinto on lifting of exploration moratorium

Papua New Guinea wants mining prospectors to come back to Bougainville to kickstart investment after years of bloody secessionist conflict on the island.
PNG’s Mining Minister Sam Akoitai is talking with Rio Tinto officials at the mining giant’s London headquarters this week about lifting a long-standing moratorium that stops other miners from exploring there.
Rio Tinto has large Australian mining interests and a 54% share of Bougainville Copper Ltd (BCL), the holder of seven exploration licences in Bougainville and the former operator of the giant Panguna copper and gold mine closed by rebel activity in 1989.
The secessionist conflict stopped all mining activity and under the moratorium, no other exploration company is allowed into Bougainville.
Akoitai, who is the MP for central Bougainville, said he wants Rio Tinto to agree to allow other potential investors to explore for minerals outside of Panguna.
He has warned that reopening the Panguna mine was a sensitive issue and it would remain closed for an indefinite period.
BCL chairman Peter Taylor has said it might not be a case of returning to Panguna but of pursuing the company’s existing exploration licences.
The mine had employed thousands of workers, including many Australians, and provided a big chunk of PNG’s income after independence in 1975.
Landowner anger over mine returns and environmental damage sparked decade-long fighting that claimed as many as 20,000 lives.
Peace has returned but many Bougainvilleans would still resent a return of BCL, which they see as tainted by the bloodshed.
The mine is estimated to have another 15 years of life.
But massive capital investment would be needed to restart it and it is still occupied by supporters of Meekamui secessionist leader Francis Ona, who died at his hideout there last July.
Democratically elected Bougainville president Joseph Kabui, whose autonomous regional government is struggling for development funding, wants the moratorium lifted.
But he warns that mining companies must properly consult with landowners and Bougainvilleans, who will have the last say through a referendum.
PNG’s Prime Minister Michael Somare told ABC Radio this week his government would like to see the Panguna mine reopen to allow Bougainville’s government to earn its own revenue. – AAP
A global minerals price boom driven by Chinese demand has benefited mineral-rich PNG, which is keen to take advantage by encouraging more mining projects.
Australian mining analyst Gavin Wendt of Fat Prophets Mining said Rio Tinto had shown some ambivalence about reopening Panguna and would have to assess the political, security and economic factors involved.
“Rio Tinto would not want to go through this whole situation again with agitation by locals and heavy capital reinvestment.
“Either Rio would decide to pick up where it left off or it would make a decision to exit, but I think you would have a queue of potential investors there. I don’t think the PNG government would be short of interest.”
“Certainly Chinese investors are looking to secure stakes in large-scale resource projects.”
BCL is owned 53.6% by Rio Tinto, 19% by the PNG government and 27.4% by public shareholders. – AAP