http://www.news.com.au/story/0,10117,16052741-38196,00.htmlRebel'...

http://www.news.com.au/story/0,10117,16052741-38196,00.html

Rebel's death clears path for mine
By Robin Bromby
July 26, 2005
From:
FRANCIS Ona, the man who launched a bloody 10-year war for independence on Papua New Guinea's province of Bougainville, has died, prompting hopes that the huge Panguna copper mine on the island can be reopened and restored to its Australian owners.

But while Ona's death will make reopening the mine easier, the task will still be difficult.
Ona, believed to be in his 50s, died on Sunday in his home village of Guava after suffering an unspecified illness for about a week, Bougainville President Joseph Kabui was quoted as saying.

The one-time rebel leader had recently proclaimed himself king of Bougainville, but was unable to derail a UN-sponsored peace process that led to the election of an autonomy government for the province earlier this year.

Bougainville, which is geographically part of the Solomons group and is ethnically distinct from the rest of PNG, descended into rebellion and anarchy in the early 1990s.

Ona played a pivotal role in fomenting the conflict, sparked in large part by anger over the lack of local gains from the formerly Australian-run Panguna gold and copper mine in central Bougainville, near Guava.

More than 10,000 people died as a result of the secessionist war. The island's economy remains in tatters.

The Panguna mine, until it was closed in 1989 by the rebels, was the economic mainstay of the island.

But the enormity of the task of reopening the mine was underlined yesterday by PNG Mining Minister Sam Akoitai - a Bougainvillean - who said it could take up to 20 years to persuade all parties to agree to get Panguna back in business.

There are two immediate problems.

One is that it was pollution from the mine, owned by Rio Tinto's Australia-listed subsidiary Bougainville Copper, that was one of the main triggers for the uprising and civil war on the island.

Resolving that problem, which would require hugely expensive technology, would be fundamental to getting the landowners on side.

Second, it would take at least $1.3 billion to get Panguna back in production and that means only very large companies could contemplate the task.

In addition, cast-iron guarantees about peace in the long term would be needed before any company took the plunge.

Mr Kabui has said he is prepared to talk to Rio Tinto, which is a considerable step forward from Ona's hardline position. He added that the company could, initially, start a small-scale operation.

Observers say such a strategy will not work as the grade of copper is too low to make a small-scale mine feasible. It needs excavation of ore in huge quantities to extract enough copper to make Panguna profitable.

Bougainville Copper chairman Peter Taylor has said on several occasions that he would be happy to talk to the new Government on the island.

Additional reporting: AFP