http://www.postcourier.com.pg/20060418/tuhome.htmBOUGAINVILLE...

http://www.postcourier.com.pg/20060418/tuhome.htm

BOUGAINVILLE Copper Limited is willing to participate in talks aimed at allowing all parties to concentrate on the future rather than dwell in the past. Chairman and managing director Peter Taylor said in the company’s 2005 annual report released recently that there was clear revival of interest in mineral exploration worldwide driven by the demand for metals to fuel China’s rapid growth. He said Papua New Guinea, Bougainville and the company were well placed to take advantage of this upturn in the resource sector. “They need to work together now to develop a strategy that is mutually beneficial,” Mr Taylor said. “BCL will be doing what it can to ensure the opportunities are not missed. As I have stated elsewhere, I am optimistic in the negotiations agreed with the PNG Government and Bougainville leaders.” He said the talks would resolve a number of outstanding issues resulting from previous mining and the suspension of mining operations. BCL recorded a net profit of K100,000 for the year ended December 31, 2005. Mr Taylor said the net profit was calculated in keeping with the accounting standard IAS 39-Financial Instruments (Recognition and Measurement) which started in January last year and excludes unrealised gains on the mark to market of investments which were now credited to the fair value reserve. “In the absence of IAS 39, the company would have declared a profit of K17.3 million compared with the prior year profit of K7.2 million,” Mr Taylor said. “The reduction in profit of K1.9 million is due to lower capital gains on investments sold of K1.2 million, exchange losses on bank accounts and cask on deposits on foreign currency of K1.6 million, due to firming of the kina relative to the Australian dollar and higher expenses principally due to an additional K300,000 or taxation and audit advice on the company’s tax disputes. These were partly offset by higher dividend income of K1.4 million.” He said as a result of the accounting changes, the K17.2 million gain on investment has been credited to shareholders’ funds which increased from K323 million to K340 million. Mr Taylor said BCL would continue on its investment strategy to move away from cash investments in PNG were interests rates had dropped and most of the company’s liquid assets were now invested in Australian equities, mainly on listed investment companies. Rio Tinto, the majority owner of BCL, said on Wednesday that while it had no immediate plans to re-open the abandoned Panguna mine, any moves to re-open the copper and gold mine would be done in close consultation with the local communities. “At this moment there are no plans to re-open Bougainville Copper,” chairman Paul Skinner told shareholders at Rio Tinto\'s annual general meeting in London. Rio owns 53.6 per cent of BCL and the PNG Government owns a further 19 per cent.