Autonomous Bougainville President Claims for „New Deal“: Panguna must be opened!
On November 10th, 2011 all major local stakeholders in the abandoned Panguna Mine met in Buka for a meeting of the Panguna Management Consultative Committee. This has been further important step towards re-opening the giant Panguna mine.
Unfortunately not all Bougainvilleans do understand the island’s situation in general yet: The debts of the Autonomous Region of Bougainville and its government (ABG) are already exceeding 1 billion Kina now. This means round about a K5,000 debt per each Bougainvillean head – babies and grandmas included! Such a huge amount of money can only be paid back from giant income. Only professional mining operated by a big company can earn this – copra, cocoa or tourism alone cannot afford this. That’s for sure.
Brief: Bougainville’s financial situation is absolutely desperate and even gets worse every day! Bougainville’s President John Momis knows this very well: “It is for this very reason that as leaders we all must forge ahead together and deal with tough issues and make tough decisions. Panguna mine must be opened!”
Bougainvilleans should be very happy that Rio Tinto and Bougainville Copper Limited (BCL) are still interested in resuming mining on the island. Running one of the biggest copper mines in the world is absolutely not a job for people without any skills. In so far all Bougainvilleans – ABG, Landowners and Me’ekamui – should be extremely interested in sustainable co-operation with experienced mining companies like Rio Tinto and BCL who are able to provide modern and environmental caring mining on the ground.
But, if there should not be legal security for BCL on the ground, the ESBC will not accept any investment of 6 billion Kina into Panguna operations! In this case the ESBC would claim to sell-off BCL to Chinese or other interested investors. ESBC President Axel G. Sturm says: “Don’t forget: This represents an investment of 30,000 Kina per Bougainvillean head. BCL is ready to shoulder this although they lost more than billion Kina due to the Bougainville Crisis that – as you know – was mainly caused by discord amongst locals.”
Mr. Sturm: “I think that it’s extremely generous of BCL to maintain its fidelity to Bougainville and its citizens and to provide support more than two decades of non-earning one single Kina.” Mr. Sturm appeals to all Bougainvilleans to stand unanimously together: It’s encouraging that all local stakeholders and Me’ekamui get together to finally resolve their problems of the past!”
Further important quotations:
Mr. Blaise Iruinu-Chairman, PMCC:
Emphasized “ that the much talked about re-opening of Panguna must at the first instance address the developmental needs of the major stakeholders of Panguna mine lease areas"
Hon. Michael Oni MHR, Minister for Natural Resources (Mining):
"the Autonomous Region (has to) move forward to develop economically to be able to meet one of the requirements of BPA, i.e. the region must be able to sustain itself economically in its move towards Referendum in year 2015.” He emphasized “that PMCC is made up of major stakeholders that have one way or the other important role to play when it comes to the re-opening of Panguna mine, which is very crucial for the future economic recovery of Bougainville."
Discussions transpired and the general position on the re-opening was obvious and both ABG and the Executive Committee Members of PMCC fully supported and endorsed that Panguna mine must be re-opened.
Mr Michael Pariu, Deputy Chairman PMCC; Panguna Landowner Association (PLA):
He went on to emphasize what the President had earlier call for a “New Deal” for Panguna Landowners and the people of Bougainville saying that this is the message that Panguna landowners have been hearing from the majority of the people of Bougainville."
Mr. Lawrence Daveona; Secretary PLA / RMTL:
i) Give the blessing to the National Government to approve BCL’s application for the Extension of SML lease for further 21 years. In giving this blessing we should lay down some conditions that BCL and the National Government must abide by before this extension is gazette.
ii) That BCL must pay up-front say between K1 to K2 Billion as a conciliatory compensation payment. This amount is insignificant as the SML license will now be for 21 years and BCL will be able to recoup its monies within 3 to 5 years after commencement of operations.
BOC Price at posting:
85.5¢ Sentiment: ST Buy Disclosure: Held
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