Islands Business reports that “the passing of the Bougainville Mining (Transitional Arrangements) Bill 2014 by Bougainville Parliament [August 8] was an historic occasion for the Autonomous Region. The bill’s passing completes the drawdown of mining powers from the national Government. The symbolic and practical significance of this event is clear – the 10-year Bougainville Conflict was sparked by the giant Panguna copper mine which was closed down [in 1989] by dispossessed landowners.
“It has been a long battle for Bougainville President John Momis who, with his team, has developed and pushed forward the bill over the past two years, changing it and tailoring it to fit the needs and expectations of the greatest possible amount of Bougainvilleans.”
However, there were protests, leading the President to strenuously defended the bill, saying “I firmly believe that we have done has been practicable”. He explained it is a “transitional law” and that the long-term law is still being developed. “Momis said he expects the final bill to be ready by early next year after further community consultation,” Islands Business continued.
After outlining the ills caused by of past mining laws imposed upon Bougainville, Momis went on to say “mining can occur only if it is done in ways that respect our people’s rights, brings as many benefits as possible and does the least amount of damage to our land, environment and culture”.
“The bill is considered a world-first in the unprecedented rights it gives to landowners,” Islands Business reports.
“We are especially proud that the bill is completely unique in the world in the focus it gives to protecting the interests of the people of Bougainville,” Momis said. “Customary owners will have many rights.”
The Panguna mine is a large copper resource in the east of Papua New Guinea in the Autonomous Region of Bougainville. It is one of the largest known copper reserves in PNG and in the world having estimated reserves of 1,000 Mt of ore grading 0.34% Cu and containing perhaps as much as 12 Moz of gold.
Bougainville Copper Ltd (BCL) is 53% owned by Rio Tinto, with the PNG government holding a further 19%. One recent estimate put the cost of reopening the mine at more than $4 billion.
The mine began production in 1972 and in its heyday provided over 45% of Papua New Guinea’s national export revenue and was incredibly important to the economy. But Bougainvillean leaders alleged that the mine had devastating environmental consequences for the island. They also claimed that Bougainville Copper had set up a system of apartheid on the island, with one set of facilities for white workers, and one set for the locals. They accused Bougainville Copper of being responsible for poisoning the entire length of the Jaba River, and causing birth defects, as well as the extinction of the flying fox on the island. This led to an uprising in 1988 led by Francis Ona, a Panguna landowner and the Commander of the Bougainville Revolutionary Army which caused civil war in Bougainville and led to the closure of the mine.
Rio Tinto’s issued statement reads: “In light of recent developments in Papua New Guinea, including the new mining legislation passed earlier this month by the Autonomous Bougainville Government (ABG), Rio Tinto has decided now is an appropriate time to review all options for its 53.83% stake in BCL.
“For some time, BCL has been involved in discussions with the Government of Papua New Guinea, the ABG and landowners about whether it would participate in a future potential return to mining at Panguna.”
Image from www.pngmininglegacies.org