Bougainville: Economic And Business Opportunities And Constraints Speakers: Mr Peter R. TaylorMr Godfrey MantleThe Hon John Momis MPMr Tim Gibson 20/05/2014 10:40 AM - 12:10 PM [ - ] View Less MANTLE GROUP WORKSHOP 1:
Facilitator: Mr Godfrey Mantle The Political Landscape Building the Economy of Bougainville Future Options for Bougainville Resources
Mining Policy and Legislation Turning to mining more broadly, the ABG has been working with the PNG National Government to implement the provisions of the Bougainville Peace Agreement to allow the ABG to exercise mining powers normally exercised by the National Government. This process is largely complete. It has involved establishing an ABG Mining Department, the development by the ABG of its own mining policy, and preparation of Bougainville mining legislation. The principle underlying these initiatives is that mining in Bougainville must be controlled by Bougainville, and all decisions on future mining must involve the highest possible participation by Bougainvilleans. Exploration will be permitted only with the consent of customary landowners for the areas concerned, and with the approval of the ABG. Landowners will be fully involved in all decisions about grant of mining leases. Benefits from mining must be equitably distributed among those directly affected and all Bougainvilleans. The policy and legislation also gives close attention to the need to encourage rational development of the rapidly expanding artisanal gold sector of our mining economy. The ABG intends to pass a Bougainville Mining (Transitional Arrangements) Bill in June 2014, in order to address urgent issues arising from attempts by individuals and by corporate interests to gain access to minerals and negotiateinequitable agreements with small groups of landowners. Permanent mining legislation is expected to be enacted early in 2015.
Once Bougainville has its own mining legislation the ABG will reassess the moratorium which currently applies to exploration on Bougainville. The ABG plans to undertake geological survey work to better assess the prospectivity of different parts of Bougainville. Drawing on this information, the ABG will gradually open up areas for exploration, but only where customary landowners support such a move. In conclusion Ladies and gentlemen, as I hope you now better understand, in a post-conflict situation such as exists in Bougainville, the way economic and business development occurs can have major impacts on conflict resolution and peace- building. Further, political processes, such as those set in train by the Bougainville Peace Agreement, can create their own economic pressures, as for example, the referendum timetable being the single most important factor in the ABG pursuing negotiations about re-opening the Panguna mine. But whatever those political pressures, the ABG remains committed to development of its mining sector in ways that provide economic opportunities for as many Bougainvilleans as possible, ensures an equitable spread of economic opportunities, and ensures active participation by Bougainvilleans in decision- making at all stages.
In terms of future preparations for negotiations regarding Panguna, the ABG hopes that the Bel Kol ceremony can happen in July 2014. BCL will then be able to establish an office in Arawa. Work can then begin to identify and address immediate environmental issues. The immediate focus will be those arising from contaminants that were not properly disposed of because of BCL’s forced departure from Bougainville. Work will also commence on identifying and addressing the most urgent social needs faced by landowners in the Panguna area. BCL will also be able to commence technical investigations necessary for undertaking its next levels of feasibility studies. One further point concerning preparations is that for the past 12 months or so, the ABG and the landowner representatives have been identifying, and discussing, the agenda of issues that Bougainvilleans will want addressed when negotiations begin. In addition to key issues such as protection of the environment and a fair economic return to Bougainville, our focus is already on those same issues I mentioned above. In other words, if mining goes ahead, it must provide economic opportunities for as many Bougainvilleans as possible, ensure an equitable spread of economic opportunities, and ensure active participation by Bougainvilleans in decision-making at all stages, including once the mine is operating. An additional key issue already being considered by the ABG is how best to ensure that a significant part of the funds generated by any future mining is used not just for past compensation and immediate needs, but is instead used to build a diversified and sustainable Bougainville economy.
Through the various steps I have outlined, we have moved gradually to the point where I believe we can soon begin negotiations with BCL. Of course, unlike other mining negotiations elsewhere in PNG, they will not relate solely to future mining operations. They will also deal with how best to respond to environmental damage caused by past mining, and also with other significant ‘legacy’ issues. The negotiations will take time, particularly because of time expected to be needed to conduct baseline and other technical studies. While we hope for a successful outcome, we will be ready to negotiate with other highly reputable miners if an agreement cannot be reached with BCL. Ultimately, while we hope for success, we cannot even assume that Panguna will prove a viable project for re-opening. It is for that reason that I have made it clear that the ABG will be identifying other prospective areas, where landowners are open to exploration and mining. Exploration may then be permitted in a limited number of such areas. Of course, ‘green-field’ exploration projects are a different proposition from re-opening the already proven resource at Panguna. It’s likely that if minerals are found, it would be at least 15 years from exploration to beginning of production.
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(20min delay)