2 July 2024INTRODUCTIONOn behalf of Bougainville Copper Limited...

2 July 2024

INTRODUCTION

On behalf of Bougainville Copper Limited (BCL), I thank the Chamber for the opportunity to be part of this interesting session.

The Chamber with its emphasis on community affairs and sustainable development, has an important place as part of this inaugural PNG Resources Week.

It’s quite an exciting time for BCL, following the ABG’s decision in February to grant a five-year extension of our EL01 exploration licence, for the Panguna project area.

This was the culmination of a period of extensive dialogue between BCL and the ABG.

There was a mutual aim to amicably resolve what had been a long-running tenure dispute that dates back to a decision taken by the previous ABG in early 2018.

It is true we had to negotiate some difficult and complex issues, but through the commitment, goodwill, and mutual respect of both parties we found a way forward.

We certainly appreciate the opportunity and do not take for granted the faith placed in us by the ABG under the leadership of Hon. President Ishmael Toroama.

Compared to the past, BCL operates today as a truly local company. This is not a misconception. It is a fact.

For the first time, the ABG and people of Bougainville are set to become our clear majority shareholders.

They currently hold a 36.4 per cent share in BCL which is to increase to 76.8 per cent, once an agreed transfer of shares, held by the National Government, is realised.

The BCL board reflects our local identity, with five of seven directors being Bougainvilleans. That is more than 71% of the board.

In addition, and unlike others, BCL has offices in Buka and Arawa with a senior officer co-ordinating 11 Village Liaison officers (VLOs) embedded among our communities and another senior officer liaising with all levels of government on the island. All of them are the eyes and ears of the company.

With the ABG and others we share a common goal to make Bougainville stronger both economically and at the social and community levels.

It is widely recognised that the successful redevelopment of Panguna is pivotal to Bougainville’s self-reliance ambitions.

Importantly, the granting of the EL01 extension has the support of landowner communities and veterans with notable alignment among various groups. In other words, we understand our challenges, differences in opinions and perceived risks but we have a common goal a strong alignment exists to redevelop Panguna to help the island regain wealth and prosperity.

As I mentioned, BCL, through a well-established local team in Bougainville, has put considerable effort into building constructive relationships on the ground over several years. This extended to providing support for worthwhile community activities and projects.

An intimate understanding of the importance of local Nasioi customs, system of landownership, family and social dynamics, which is not well understood by non-locals, has helped us to build mutual respect and effective engagement.

So having been in something of a holding pattern for several years, certainty of tenure provides impetus to intensify our activities on the ground in accordance with the Bougainville Mining Act 2015.

The first phase of exploration will include social mapping and landowner identification studies followed by geological work to inform the necessary pre-feasibility and bankable feasibility studies. We have the IP (intellectual property) and technical advisers who are helping us to achieve this objective.

We will scale up our resources as required and explore the necessary investment and partnership opportunities as things advance.

As we move forward, we do so with respect for our regulator and the laws of the land. In this respect we are totally committed to industry best practice in all that we do.