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http://www.thenational.com.pg/051007/business5.htm


BCL welcomes new authority

THE inauguration of the Mineral Resources Authority (MRA) has been welcomed by Bougainville Copper Limited (BCL) anticipating the new authority to be the body to drive the collaborative process towards a re-start of mining on Bougainville.
BCL chairman Peter Taylor told shareholders at the company’s annual general meeting yesterday in Port Moresby that his board is not approaching the question of reactivating exploration and mining in a piecemeal fashion.
“The way to achieve this is for all parties to work together to come up with a mutually acceptable and economically achievable plan.
“I believe the new and now operational MRA is the right vehicle to act as the independent champion of this process,” Mr Taylor said.
BCL has some K400 million in its readily convertible share portfolio, providing the flexibility to commence feasibility studies and other work aimed at achieving a return to exploration and profitable mining in PNG.
As one of the first steps in a three-year plan, BCL has agreed to engage with the National Government and Bougainville stakeholders in a ‘review and renegotiation’ of the Bougainville Copper Agreement.
Existing legislation has been outdated by the events of 1989, and by the emergence of the Autonomous Bougainville Government and its request to draw down mining rights currently administered by the National Government.
Also critical are the pragmatic issues of landowner compensation, equity participation, profit sharing and environmental management of any new or re-established operations.
Meanwhile, BCL has re-asserted its claim to be the sole operator of the Panguna ore body.
“I wish to reassure shareholders that Special Mining Lease No.1 over the Panguna mine area and associated leases, including seven adjacent exploration licences, are held in good standing, solely by BCL,” Mr Taylor said.
“They are the only tenements for exploration or mining currently in Bougainville.
“BCL’s approach to a re-start is gradual and inclusive of the positions of all stakeholders.
“And this requires settling outstanding issues and agreeing on terms for the future.”