press release boc

Press Release BOC from today:


The Way Forward - 2008/05/08

I will now move on to discuss the way forward, and repeat what I said at the outset,
that your directors believe that the company is better positioned now than at any
time in the past nineteen years to make a return to profitable mining on
Bougainville, for the benefit of all stakeholders.

There are many challenges in re-opening the mine, but there is also a confluence
of factors today which the board considers to be favourable.
The Autonomous Bougainville Region needs economic development to underpin
its economy and support service delivery and social advancement.
I believe this view is shared by many Bougainville residents and leaders.
I detect a mood of reconciliation, initiated by the people themselves and promoted
by the Autonomous Bougainville Government.
That is a positive development in looking forward rather than dwelling on the past.
Recent negotiations between the Autonomous Bougainville Government and the
National Government of Papua New Guinea have made significant progress
towards the resolution of political and administrative issues associated with the
future of mining and exploration on Bougainville.
Both Governments have agreed to a fifteen point plan and a timetable to put in
place a definitive and workable mining regime.
Included in this agenda are items which have a direct bearing on your company’s
future, including the drawdown of mining powers, the issues relating to ownership
of mineral resources and renegotiation of the Bougainville Copper Agreement.
The Company is not a party to these negotiations, but has been an observer and

has been kept informed of progress.
The Company enjoys an effective working relationship with all parties.
The next meeting of the Joint Supervisory Board, which is driving the agenda, is
set down for late June.
The Company supports and is prepared to assist this encouraging process where
appropriate.
In talks with various parties on Bougainville, the Company has expressed its desire
to conduct environmental and safety audits in areas previously affected by mining
operations.
Specialist consultants will be engaged to conduct these on the ground audits and
to make recommendations on any remedial work considered necessary.
The Company is assisting with the process of reconciliation and consensus,
initiated by landowners and their elected leaders.
Peace, consensus and law and order are pre-requisites to undertaking any activity
on the ground.
The Company acknowledges the efforts of President Kabui and his Government in
patiently and peacefully pursuing these objectives.
There has not been a more favourable time since mine closure to assess the
economic feasibility of re-starting and operating a large copper mine on
Bougainville.
World demand for copper, particularly in China, has created an unprecedented
opportunity for Bougainville to kick start its economic growth through mineral
resource development.
No other Company has the knowledge and data to match BCL’s understanding of
the Panguna ore body.
To be in the best possible position to understand the technical and financial
requirements to develop Panguna a rigorous range of studies is required.
We are currently undertaking an “order of magnitude” study.
In broad terms the order of magnitude study will look at the annual production of
the mine in a range of 20 – 50Mt/y and various projected copper and gold prices
This study is being undertaken Rio Tinto Technology and Innovation Group using a
team of internal and selected external experts
The study commenced in April and is projected to be concluded in August 2008
The strengths for a restart are:
• Very low technical risk
• Known ore body and world class production track record
• Ore body only partially mined with large available remaining reserves. In
1989 estimated mill feed was 691Mt at 0.40% Cu and 0.47g/t Au
• Significant infrastructure in place eg. access road and port
• Upside opportunities exist to increase mine life, increase revenue and lower
cost
But there are issues such as:
• Inability to access site makes it difficult to estimate restart costs and
allowances
• Viability is very reliant on future metal prices and grade.
• The selection of the tailings disposal method will require significant
stakeholder input and agreement
• and Funding
Beyond the special mining lease, there exists the attractive prospect of renewed
evaluation of our other adjacent tenements.
These remain largely unexplored, and with the lifting of the long-standing embargo
an exploration program is possible.
The right to explore these BCL properties is a desirable outcome of the
renegotiation of the BCA.
In summary the tenement situation is:
• Seven prospecting authorities, total 624 square kilometres
• These tenements have been maintained and are in BCL’s control
• Studies have identify a number of coincident geophysical and geochemical
anomalies
• They are prospective for significant discoveries of both porphyry coppergold
and epithermal gold mineralisation
• High priority targets have been identified.
When we talk about a return to profitable mining on Bougainville, for the benefit of
all stakeholders, I believe it appropriate to consider the many benefits which
accrued during the previous years of mining activity, insofar as this may point to
similarly beneficial outcomes in the future.
The beneficial outcomes included:
• an era of economic activity
• employment
• educational opportunity
• health advancement and
• social benefit on a scale never seen before or since in Papua New Guinea.
These are achievements this Company and its many employees can be proud of.
Bougainville Copper believes that if it makes a return to profitable mining on the
island, significant benefit will once again flow to the people of Bougainville.
Redevelopment will bring a wide range of local business opportunities and new
infrastructure to support those businesses
Rehabilitation and restoration techniques are now better understood and the local
community will be invited to participate in planning and implementation.
As your chairman I do not speak lightly of the challenges that lie ahead but let us
look again at the positive factors affecting your Company’s activities today:
• the buoyant prices for copper and gold
• the prospective tenements
• the stability of government in Papua New Guinea
• the willingness of all parties to discuss Bougainville issues positively
• and the processes of reconciliation that are underway.
Last year your board adopted a comprehensive three year plan for a return to
exploration and profitable mining. We are following that plan, and I believe the
results are satisfactory to date.
• We will continue our technical and social studies
• Pursue the re-negotiation of the BCA
• Fulfil, wherever possible, our obligations on the ground
• Protect our assets
• and assist in the process of reconciliation and consensus
In the coming year the priorities are;
• Complete the order of magnitude study
• Scope further studies
• Agree an exploration program
• Commence the formal review of the BCA
• Complete a safety and environment audit
• Advance the reconciliation process
• Formally engage with landowners
That concludes my presentation.
Thank you.
Peter Taylor
Chairman