png expects panguna mine to restart 2 yrs

=DJ INTERVIEW: PNG Expects Panguna Mine To Restart 2 Yrs -2-

Panguna produced about 180,000 tons of copper a year to rank as the world's third-largest copper mine. It remains closed despite a 1998 cease-fire and the formation of an autonomous island government.

Any decision on resuming mining at the dismantled operation is estimated to cost around US$1 billion.

Before any decision can be taken, however, stakeholders must complete a review of new fiscal and operating terms for exploration and mining on the island, Akoitai said.

The long-delayed review process is expected to begin in the first quarter of next year and take "months" to complete, he said, adding the benefits for Bougainville would have to be significantly better than current terms.

"It's an issue close to me. I'm from Bougainville and I also represent the electorate where the mine is. I would want the review process to be concluded quickly so we can decide the future of mining in Bougainville."

"The whole reason the government in Bougainville asked for this review process to began is so we can sort out the outstanding issues and then perhaps start mining from a clean sheet."

Benefits for the local community would have to be in line with new benchmarks of modern mines, he said, without elaborating.

Akoitai said Australia's Ord River Resources Ltd. (ORD.AU) and Gallipoli Mining Pty Ltd are among companies to make recent approaches to authorities on the possibility of exploring in Bougainville.

-By James Attwood, Dow Jones Newswires; 612-8235-2957; [email protected]
-Edited by Ian Pemberton