Bougainville Tourism News : Takanupe we must conserve for future generations

bville

 “These aren’t just beautiful islands with white beaches surrounded by pristine waters and bountiful reefs. They serve a multitude of existential purposes for man and for the larger purpose and meaning of nature with which we are inexplicably linked and bound.

It must behove us and is incumbent upon us to do our part to care, respect and conserve these fragile islands and marine eco-systems for our generations to come just as our ancestors have done for our generation. This is a covenant that is sacrosanct and timeless that we must be beholden to in a symbiotic world that we share with living nature.”

Simon Pentanu Uruna Bay Retreat – Pok Pok Island Bougainville

An island of the gods, resplendent in its natural beauty at sea, mimicking a miniature land and forest that Moreha (Bougainville ) is, beatified by its beauty, rich in its colours and alluring with everything it displays, from its crab-like shape with its claws harbouring it’s azure deep sky blue kakunibarra (lagoon) and the beach and trees seeming like a longish body of the crustacean seen from above.

There are more than a dozen small uninhabited islands that dot this stretch of east coast along Central Bougainville, like from Vito past Takanupe and its sister island Kurukiki nearby, and past the Zeunes where the planes make their approach to land at one of most picturesque beachside airports at Aropa.

Most of these small islands have their own kakunibarra of some size, shape, depth or other. But Takanupe’s kakunibarra  is the most conspicuous because it is larger in surface area than the land area of the island itself. It is curiously beautiful and alive from the satellite’s view from above.

These kakunibarra teem with all kinds of fishes of the sea. They are respected by fishermen along with their tales that serve the purpose of conservation when you find out what the moral of these stories is.

Myths and folklore about places and about real life stories are passed down to serve a purpose. Many were passed down to protect and conserve the islands, its reefs and its natural but fragile environment.

It used to be you could only get to this and other islands by canoe, get  enough for your needs as a subsistence fisherman and paddle back home.

If you wanted more fish for a feast or ceremony or some other important occasion you stayed overnight or longer and returned home with a canoe-full of smoked fish mixed with some fresh fish caught as you returned home. There isn’t this abundance of fish stock any more, because of the easy and more frequent forays by fishermen and others using motorized boats to get to these islands and their kakunibarra.

It must behove us and is incumbent upon us to do our part to care, respect and conserve these fragile islands and marine eco-systems for our generations to come just as our ancestors have done for our generation.

Bougainville Mining News: Rio Tinto exit from Bougainville and Panguna landowners

Panguna

 

Until Rio Tinto announced its decision to exit Bougainville, extensive consultations over the past 6 years helped develop broad consensus amongst Panguna lease landowner communities, the wider Bougainville community, and the ABG on working towards re-opening the Panguna mine, with majority Rio Tinto owned BCL as the mine operator.

Significant new issues now arise because of the way that Rio Tinto has decided to exit Bougainville. This note deals with some key issues arising from:

  • Rio Tinto dividing its 53.8% equity between ABG (36.4%) and PNG (17.4%),
  • the Prime Minister announcing that the 17.4% PNG received from Rio should be transferred to ‘landowners and the people of Bougainville’, but retained by PNG until agreement on how it should be distributed;
  • Rio Tinto deciding it is not responsible in any way for Panguna legacy issues

Value of the Shares in BCL The only way the shares will ever have significant value is if three condition are met:

1) A new and technically qualified developer must agree to participate;

2) That developer must be able to provide the approximately K20 billion needed to re-open the mine;

3) The mine needs to be re-built and operate profitably. Because of the need for the K20 billion investment, the percentages of all existing shareholder will be diluted to very little if the mine re-opens.

In that case, the real value for landowners will not come from those existing shares, but instead from the guarantees in the Bougainville Mining Act for mine lease landowners to share in mine benefits through: free equity; royalties; and preference in employment and business opportunities.

What is Happening with the 17.4% Now Held by PNG? 

Many major uncertainties exist here. In particular:

The NEC decision of 4th August only approved ‘in principle’ transfer ‘to the landowners and the People of Bougainville including the Panguna Mine landowners’. In Parliament on 18 August the Prime Minister is reported (in Post Courier, August 19) to have said that it is ‘up to the landowners, the people and the government to decide on the percentage allocations’. The PNG Government will continue to be ‘custodian’ until ‘landowners, the people and ABG resolve their differences’.

Determining a monetary value for the BCL shares is difficult. It can be measured in various ways. When PNG was considering buying the 53.8% from Rio, it was discussing a price of $100 million. Informal information suggests this was a reasonable valuation. However, Rio’s exit, its divesting of its shares in BCL, the growing uncertainty about ownership of the 17.4%, and the overall reduced certainty about the future of Panguna all makes the BCL shares less valuable.

The main value that exists in BCL involves:

1) money and securities (about K135 million, some of it already committed); 2) Panguna drilling and exploration data ‘translated’ by BCL into a modern mine planning program; 3) the exploration licence over the former Panguna SML area granted under the ABG Mining Act.

 

What is meant by ‘the landowners’ and ‘the Panguna Landowners’? how shares would be held by landowners (e.g. as individuals, as clan groups, as representative association), and how distribution/allocation between them will be decided.

Suggestions are being made that the 17.4% will be the compensation for legacy issues. Minister Lera has been reported to say the goal is for landowners to become millionaires.But the value of the shares is uncertain, and undoubtedly quite low, and it is very uncertain who the shares might be transferred to or when they might be transferred. Without the mine re-opening, there will be very little if any money from the shares for the landowners.Even more important is the fact that even if the shares are transferred, that will do nothing to meet the huge expense involved in dealing with environmental damage and the impacts experienced by relocated village communities.

Dealing with Environmental Damage and Impacts of Relocated Villages

In the seven weeks since Rio Tinto first advised the ABG of its decision to exit from Bougainville, the ABG has already initiated steps to get action and funding in relation to the terrible problems caused by the mine and by Rio Tinto failing to accept responsibility for the damage done. In particular, we have acted to:

At this stage, the ABG is aiming to see Rio Tinto, and the Australian and PNG Governments commit significant funds to a Trust Fund to meet the costs of action in relation to mine legacy issues.

Bougainville, and the mine-lease landowners, cannot wait to see if a new developer can be found, and the mine actually re-opens. The earliest possible action is needed in relation to issues such as chemical stock-piles, the breaches to the Tailings levy banks and the flooding of neighboring areas, the damage to the Kawerong and Jaba rivers, and the conditions in which relocated village communities live.

Can the 17.4% be a Basis for Compensation for Mine Legacy Issues?

So no one knows what proportion of the 17.4% shares would go where, and how long it would take, under the Prime Minister’s proposals.

  • create international awareness of injustice and breaches of human rights;
  • get high level advice about action taken, in relation to these problems; and
  • obtain legal advice about possible legal action against Rio Tinto.(a) Awareness: (b) High Level Advice:

The ABG has made direct approaches to numerous organisations seeking advice and assistance. They include:

Much more work is needed to create media awareness. But international awareness can also be contributed by other action and contacts.

Getting international community awareness of the issues involved is a first major step towards putting pressure on Rio Tinto.

After we supplied a senior Australian journalist with extensive information on the issues, he interviewed the President and wrote a major article published in the main Sunday newspapers in Sydney, Melbourne and Canberra on 21 August. Several stories appeared in The Australian newspaper after the Prime Minister’s announcement about transferring shares to landowners and the people   of Bougainville.

Numerous stories have been broadcast on Radio Australia and Radio NZ International. In July story was broadcast on Australian ABC TV news. The resident ABC journalist is planning a 4 day visit to Bougainville to develop a major television story for Australia. A journalist from The Australian newspaper is also planning a visit to Bougainville.

The United National Environment Program;

  • Human rights and corporate social responsibility monitoring organisations, including:
  • Human Rights Watch;
  • Amnesty International;

International Alert;

  • Shift (a US-based organization that monitors the UN Guiding Principles on Business and Human Rights);
  • Some NGOs and consultancy organisations that deal with corporate social responsibility and businesses and human rights;
  • The German-based Catholic Church development organization, Misereor, in relation to business and human rights issues (a focus of that organization).

Initial legal advice has been obtained from Professor James Otto (mining lawyer and mining economist who assisted the ABG develop its mining policy and mining law). A senior officer in Misereor with experience in corporate social responsibility and human rights has this week provided additional contacts with lawyers who work in this field in Germany and the United Kingdom, and these lawyers will be contacted in the coming days. The initial suggestions are that court action should be initiated, and the various options will be evaluated.

 

It includes dealing direct with groups of ethical investors with a view to persuading them to withdraw investment from Rio Tinto in protest at their treatment of Bougainville. The aim is to make Rio concerned that their share price will fall if they fail to act fairly in relation to Bougainville. Similarly, we have been advised to enter discussions with organisations that maintain indexes of corporate social responsibility and corporate performance in relation to human rights. Reduced ranking in such indexes can also result in share prices dropping.

We are still in the early stages of obtaining advice and sorting through the information and suggestions being received.

Bougainville Mining News : PNG Panguna decision under ” mines “Bougainville’s autonomy say Momis

Momis

Prime Minister, the reasons for your decision on the equity suggest that you believe that you know better than the ABG about Bougainville’s mining policy needs. You substitute your views for ours. Yet under the Bougainville Peace Agreement, responsibility for Bougainville mining policy has been transferred, so that these are now matters solely for the ABG.”

Letter from Bougainville President to PM of PNG

Dear Prime Minister,

I refer to your Government’s decision to allocate the 17.4 per cent equity in BCL (recently received from Rio Tinto) to ‘Panguna landowners and the people of Bougainville’. The decision must be rejected by the Autonomous Bougainville Government (the ABG).

PNG Panguna decision under mines Bougainville’s autonomy say Momis

You are reported as telling the Parliament on Thursday 18 August 2016 that you:

  • ‘deliberately’ decided that the ABG should not be majority shareholder in BCL,
  • ‘wanted a separate vehicle that the landowners can meaningfully and directly participate in BCL’, and
  • do ‘not believe’ that the 5 per cent interest for landowners in mining operating companies provided under the Bougainville Mining is ‘sufficient enough to compensate some of the suffering the people of Bougainville had’.

Prime Minister, the reasons for your decision on the equity suggest that you believe that you know better than the ABG about Bougainville’s mining policy needs. You substitute your views for ours. Yet under the Bougainville Peace Agreement, responsibility for Bougainville mining policy has been transferred, so that these are now matters solely for the ABG.

We have given careful attention to mining policy. We give landowners veto power over ABG grant of mining licences, giving them real and direct involvement in decision-making. They must be satisfied with conditions and benefits before a project proceeds. A minority 17.4 per cent BCL equity that you propose will not give them any control over decision-making.

ABG policy also guarantees landowners 5% free equity in any mining operating company. If Panguna does re-open, that will be worth much more than 17.4% in the current BCL. Because re-opening will cost about K20 billion, a new developer will definitely be needed. The new capital requirements would then dilute all present BCL equity shares to tiny percentages. So 17.4 per cent in the existing BCL will only make landowners etc. minority shareholders in a company now worth very little.

By comparison, our Act guarantees they will have valuable equity in the fully funded project, if it re-opens. Our act also guarantees separate 1.25 per cent royalty shares each for: 1) mine lease landowners; 2) projects for those landowners; 3) adjacent landowners; and 4) infrastructure development for Bougainville generally.

It also guarantees landowner preference in mine employment and business opportunities. So our law offers very real financial benefits especially to landowners, but also to all Bougainvilleans.

The ABG believes that you are making ill-informed decisions about a complex situation that you clearly do not understand, and which do not bring real benefits to landowners. The decisions undermine autonomy, and are bad for Bougainville.

As the government of all Bougainvilleans, the ABG needs majority BCL shareholding to give it clear decision-making authority about Panguna in the interests of all Bougainvilleans, both landowners and others.

Bougainvilleans ask why you interfere in our mining policy. Do you fear that ABG control of Panguna could provide the revenue needed for Bougainville independence? In fact, no one knows if the agreed process under the Peace Agreement will lead to independence. More important, interfering in mining issues only causes deep anger in Bougainville. That is likely to cause increased support for independence. The only way you can now reduce support for independence is to work in cooperation with the ABG to make people see that autonomy really meets the needs of Bougainville. Supporting our mining policy is an essential start.

The ABG cannot allow your bad decisions to stand. I now offer you a final opportunity to resolve this issue. I request you to direct transfer of the 17.4 per cent to the ABG.

If you refuse to do so, the ABG must use other means to keep clear control of decisions on Panguna. In particular, we will cancel BCL’s exploration licence under the Bougainville Mining Act (notice to show cause why it should not be cancelled has already been given to BCL). We will then seek a new developer by inviting tenders using powers under our Mining Act.

That licence is BCL’s major asset. So cancellation would probably make all BCL shares almost worthless, including the 19.2% BCL equity PNG has held since 1972. Until now the ABG has been open to PNG retaining that equity. If Panguna re-opens, the National Government could then keep equity involvement. But if interference in ABG control of mining continues, we have no choice but to cancel the licence and completely end PNG involvement in Panguna.

That will not reduce landowner involvement in decisions about Panguna, or their sharing fairly in revenue, for the Bougainville Mining Act ensures their full involvement in both.

I await your response.

Yours sincerely,

John L. Momis

President, ARoB

 

 

Bougainville Mining News: Minister Miringtoro responds to the attacks on PNG National Government by President Momis

timthumb

As the member for Central Bougainville elected by the people of Central Bougainville into the National Parliament of Papua New Guinea, am concern about the continued media attacks by the ABG President John Momis regarding the transfer of 17.4% shares to landowners and people of Bougainville, by the National Government. As far as I know during his meeting with the Prime Minister which was attended by the Regional Member for Bougainville and Minister for Bougainville Affairs, Joe Lera, the President Momis agreed to the share distribution to the Landowners and ABG. “

The 17.4% BCL share equity in effect were gifted to the National Government by Rio Tinto. It was therefore was the prerogative of the Prime Minister to give the shares to the landowners as a token of goodwill.

ABG on the other hand was offered 36% percent by Rio Tinto through the National Government, making it a majority shareholder.

I don’t see any logic in the President’s Statement that such a move is a threat to the Peace Agreement. In my it is a step in the right direction in strengthening the peace by addressing one of root causes of the Bougainville Crisis, by giving shares to landowners who had been deprived of proper compensation, for permanent damage to their land and their environment.

Hon. Jimmy Miringtoro, OBE MP Press Release

This distribution of shares was tabled and approved by the cabinet on the 11th of August 2016.

Even any attempt by BCL to clean up the mess will not restore it to it’s original state. Firstly let me remind the good President that in the 20 years when the mine was in operation during his terms in office as a Senior Minister and Statesman, he never made any effort to negotiate for equitable benefits to landowners from the proceeds from the mine through ownership of shares in BCL.

Needless to say that during that time Panguna mine was one of the most profitable mines in the world and the shares were worth their weight in gold. Today we have to put up with childish bickering from the President over shares that are worthless unless there is mining operations churning out profits.

The President goes on to say that the ABG Mining Law gives landowners full decision-making involvement and good revenue sharing opportunity if mining resumes. That is untrue. Firstly the mining law was written by an organization that has a reputation of undermining rights of indigenous people and liberalizing economies in the Third World for take over by large corporations. Secondly, the Mining Law violates the United Nations Charter on the Rights on Indigenous People especially the concept of “Free Prior Informed Consent” or FPIC.

The Mining Law should have gone under the scrutiny of the landowners via independent legal consultations. The whole matter was virtually dropped on the people in the mine-affected areas of Central Bougainville and also the people of Bougainville at large. As the mandated Member of the National Parliament, representing the landowner of Central Bougainville, I have consulted with the Prime Minister prior to making the decision to give the shares to the landowners. It is the only way justice can be served to people who have not lost their land, their environment which is their livelihood, but also their lives.

The President’s outbursts are shameful because he was the one who stirred up the landowner sentiments to cover up his failures at the national level, in securing better outcomes for the landowners in the mine affected areas.

He verbally attacked BCL in 1989 and came up with a dream he called “The Bougainville Initiative” in which he tried to bring in another company to replace BCL as the miner at Panguna. The President can start to make peace with the people of Panguna and Bougainville by admitting that he had failed them. He should apologize to them for the sufferings and miseries they faced when they chose to take up arms because he did not hear their cries as their leader and representative in the National Parliament.

He could have prevented the war if he had been honest right from the start. The President must now talk with the Landowners about the shares instead of making unnecessary attacks on the National Government, which has done its part. The giving of shares to landowners and ABG is an indication that the Government has a genuine concern for the welfare of the landowners. It anticipates further negotiations and discussions with ABG and landowners to decide how best to work together for the benefit of all parties.

However, up till now President Momis has proven that he is incapable of running a Government which is struggling with the delivery of services to the population and the management of funds given to it. His Mining Law has proven ineffective in preventing BCL from exiting without meeting it’s obligation to clean up the mess it left behind.

The only option left now is to make the landowners shareholders of mine, as they cannot be compensated for the loss and damages they have suffered. Court battles that the President is hinting at can take years and there is no guarantee that they will be won and may meet the similar fate to the class action previously lodged in the USA. In addition, it is highly questionable at this point in time who will meet the legal costs of the legal challenge against Rio Tinto.

The Bougainville Peace Agreement deliberately steered clear of the mining issue because it was a very sensitive and emotional issue owing to the fact that it was viewed by many as the root cause of the conflict that led to loss of many lives and properties. ABG’s premature effort to reopen mining in Bougainville when the wounds of the war were still fresh and people are still deeply divided was always going to create problems for ABG and the National Government

. Over the years, ABG has been crying for money which it cannot manage as it was indicated in audit report from Auditor Generals Office. Currently we have complaints from the President about the shares. How can his inappropriate Mining Law protect landowner interests when the law gives ultimate power back to ABG and not the landowners.

A law which carries jail terms and monetary penalties against landowners who disrupt mining operations if the mining company did not respond to their grievances. Is this the sort of law to protect rights of the landowners?

I recommend that the President cede control of Bougainville to someone who has the energy, commitment and vision to move Bougainville forward instead of wasting time trying to kick up a dead horse. I see nothing wrong with building wealth for the landowners who can then contribute meaningfully to Bougainville’s economy instead of them being spectators all the time. Our people are tired of vague idealism by those who live in utopia that has brought no tangible benefits to us but continued exploitation by foreigners.

Hon. Jimmy Miringtoro, OBE MP

 

Bougainville blames PNG’ s PM O’Neill for ‘most serious dispute ever’

PNG ON

“In relation to Bougainville Copper Limited, there has been a great deal of discussion, some very unhelpful, some spiteful claims suggesting the Government was taking over the mine.

After many months of discussion, Rio Tinto has decided that they will gift its shares to the people of Bougainville and the people of Papua New Guinea.

That is the best outcome that we could gain.

With this transfer, the people of Bougainville will own a combined shareholding of 53.8 per cent of BCL.

Mr. Speaker, this Government and this House knows that this is the right thing to do.

This will ensure that for the first time in history of BCL, the landowners will be given a direct say and direct participation in the operation of the BCL mine.”

PNG Prime Minister Peter O’Neill | August 17, 2016  

Extract from Ramumine

The Bougainville Government is furious at statements by Papua New Guinea’s Prime Minister Peter O’Neill that he has transferred his government’s shares from Rio Tinto to the province’s landowners.

The Rio Tinto shares had been controversially gifted to the national government in June by the multi-national, and on Wednesday Mr O’Neill told parliament he was transferring them on to Bougainville.

On Thursday he clarified this to say the shares would go to the landowners and people of Bougainville and that he had no intention of giving them to the Autonomous Bougainville Government.

The shares are in Bougainville Copper Ltd which had run the long closed Panguna mine and the ABG wanted them to give it a controlling interest in the mine.

The ABG President John Momis told Don Wiseman the future of Panguna is the most sensitive issue in Bougainville.

See Full interview Below

Text of PM Speech

Mr Speaker,

I wish to make a statement in respect to my commitment to this honourable house last week that I intended to announces some of the decisions that our Government has taken in respect to the relationship that our Government has with landowners, the provincial governments and the resource development in the country.

These decisions will have a direct bearing on future resource developments that will take place in the country.

The decisions that we have taken are because of the direct interest that the Government has in these particular projects.

Mr Speaker,

Land, and its connection our people is at the heart and soul of our country and our communities.

Our land gives us life and supports livelihoods, it gives us a place for communities to live, and land ownership provides certainty for our children and their children.

But too often in the history of our country – our landowners have been let down.

Our landowners and their communities been made to be bystanders as their ownership has been taken away from them.

This includes both foreign and national companies, and this has been supported by successive Governments.

However, Mr Speaker, our Government has committed itself to empowering our people – and this commitment is embedded in our Alotau Accord when we formed Government in 2012.

We are committed to giving direct participation in resource developments in our country so that our landowners can take ownership, and build capacity in order to sustain their own livelihoods and their communities.

I wish to announce to the House today a series of decisions by our Government that relates to the interests of landowners and the people specifically in Western Province, in the provinces where LNG and oil are being produced, and the Autonomous Region of Bougainville.

These decisions are milestones in the history of our country, they will continue to empower and give confidence to many landowners and communities throughout the country.

Ok Tedi

The first of these Mr Speaker, concerns the direct equity in Ok Tedi Mining Limited.

This decision gives Fly River Provincial Government and Mt Fublian Landowners more say in the development of that mine.

The National Executive Council has endorsed the decision of our Government to transfer 33 per cent, one third of Ok Tedi Limited equity, to the people of Western Province – including landowners, affected villages and the Provincial Government.

This is a totally different approach to the past where the people of Western Province only received dividends of up to 6.1 per cent that was held by the State.

Today we are providing direct equity participation for the people of Western Province and the landowners, and this will further allow for participation at the management and the board level.

The people of Western Province to come to their own agreement about the distribution of the shares among themselves between the Provincial Government, the landowners and communities surrounding the mine.

It has been agreed in Cabinet that the shares will be held in trust by the Mineral Resources Development Corporation, through their managing of the mineral resources Ok Tedi and the mineral resources Star Mountain on behalf of the provincial Government and the land owners as well.

Mr Speaker, the value of the resources in Western Province is enormous and the people of that province and communities around the mine must benefit meaningfully from these resources.

When we took over the mine it was worth less than 500 million dollars.

The current assets of Ok Tedi will be valued at over 3 billion US dollars in twelve months time.

I note the former chainman of that mine has made a public advertisement today, but our Government is not going to engage in a war of words and we will allow the courts to make those determinations.

But one thing is very clear, after all of these years of operating this mine, under BHP and under PNG Sustainable, it is evident that our people and our provincial governments have received limited benefits and for that reason we are making this decision.

Since taking ownership of the Ok Tedi mine, and through new world class management, we have seen a total turnaround.

Mine equipment has been upgraded, and the way the mine operates has changed, including better management of the environment making sure our communities can be safe, and improve their lives.

Because of the management, re-tooling and enhanced production processes, the mine’s efficiency has improved making it more profitable, and able to operate in a low commodity price environment.

The the commodity prices improve that will make the mine even more profitable in the long term.

Mr Speaker,

In broader terms, these arrangements will see that the people of Western Province will have total assets, including the stake that they have in PNG Sustainable fund, valued at well over 2.4 billion US dollars.

Making them one of the richest provinces in the country.

I am hoping that through the landowners and the Provincial Government, that they will continue to manage these funds well for the benefit of future generations in the coming years.

We are aware of the issues that we have with PNG Sustainable, our Government will continue to fight for the rights of the people of Western Province.

Again I stress clearly, that our Government has no intention of taking over that particular fund for the people of Papua New Guinea.

That fund belongs to the people of Western Province.

They must have their say and they must take ownership of that fund and manage it themselves.

They must continue to do that and this is why we are in the court in Singapore, and I will allow the courts to make their decision.

But so far we have won every argument that has been presented to the High Court of Singapore, and we are confident that we will have a better outcome for the people of Western Province.

We are making these decisions giving close to 5 billion Kina back to the people of Western Province and this is a commendable decision that our Government has made for our people.

LNG Producing Provinces

Mr Speaker,

In terms of the LNG and oil producing provinces, they are an important part of our economy.

This is now the Government trying to implement the decisions that the previous Government has taken including the distribution of equity and the benefits that are due to the people of Hela, Southern Highlands, Gulf, Central and Western Provinces.

As I said in Parliament last week, since the production of oil began in our country, our landowners and our provinces have received close to one billion Kina in benefits, but as you look into these provinces there is nothing to show for it.

We must have better management of these funds and we intend to work closely with the landowners and the Provincial Governments in ensuring that the every MOA that we have signed, every IDG grant that we have promised, every business development grant that we have promised, and all the commitments under the LBSA and the UBSA, we intend to honour.

These are done by various Governments since oil production began in the early 1980s, but we intend to honour every commitment that has been made.

Since the sale of the gas, we have now 135 million Kina in the central bank in royalties, 130 million Kina in development levies, and 200 million Kina in equity for these five provinces.

These funds are placed in trust accounts with the Bank of Papua New Guinea.

Mr Speaker,

To dispel false information, that has been circulated by people with a political agenda and their own interests, I have yesterday directed our officials to travel up to the landowners and show them the bank statements with the actual bank balances in the accounts.

They will have no doubt whatsoever that their money is safe and in trust for their use.

The State has not mortgaged those funds, they are available and waiting for the clan vetting exercise to progress, and once that is done I have directed the Minister for Petroleum and Energy, and his department, to within 30 days after this Parliament rises, they must complete their clan vetting exercise.

After 30 days we will start distributing these funds that are rightfully due to the landowners, and rightfully due to the provincial Governments, and all the stakeholders that we have committed to.

The equity represents almost 2 percent of the project, which is free carry, and through the Umbrella Benefit Sharing Agreement which was signed in Kokopo in 2009, the Government at that time decided that we will give a further 4.27 per cent in Kroton, now Kumul Petroleum, as indirect equity in the PNG LNG project.

Under this agreement, the landowners and Provincial Government were to pay the State close to 1.1 billion US Dollars for 4.27% equity in PNG LNG.

The Hela Provincial Government took charge of raising those funds, but we are unable to conclude as the landowners continue to face challenges in arranging finance to fund the acquisition.

Govern current market conditions, where the oil price has collapsed from US$110 per barrel down to US$27, it is quite impossible for the landowners and Provincial Government to raise that money.

That is why NEC has approved that it will extend the time, that expired on the 30th of June, to be extended to 31st December 2016, so they can have the opportunity to raise more funds over the next few months.

Mr. Speaker,

We also decided that we would renegotiate the pricing given that the price of oil has dropped, so that it becomes affordable so that they are able to go and raise that money at a new discounted price.

This is only fair that they are given the opportunity to raise money to pay the Government for these shares that they are to receive.

Our officials, the landowners and the officials of the provincial government will work through it in due course I will inform Parliament when those agreements are put in place.

Bougainville Copper Limited

Mr Speaker,

In relation to Bougainville Copper Limited, there has been a great deal of discussion, some very unhelpful, some spiteful claims suggesting the Government was taking over the mine.

After many months of discussion, Rio Tinto has decided that they will gift its shares to the people of Bougainville and the people of Papua New Guinea.

That is the best outcome that we could gain.

This Government has shown a greater commitment to Bougainville that any other Government.

I want to tell the people of Bougainville that this position has not changed, and the Government will continue to work with the ABG, and the people of Bougainville, to achieve the best outcomes for them.

This includes the continued roll-out of services.

We continue to work to restore basic services, build more roads and other infrastructure and to work day and night with our friends in the ABG to advance the peace process.

The people of Bougainville have been through too much pain over the past thirty years, and should not face further frustration and confusion because of politics.

So today, I wish to make an announcement that should put to rest the rumours and misleading information.

This is an historical announcement that will affect every man, woman and child in Bougainville.

Rio Tinto decided to transfer, of its own accord, its 53.8 per cent controlling interest in BCL to ABG and the State.

Rio Tinto has transferred 17.4 per cent to the National Government, and the remaining 36.4 per cent to the ABG without costs.

These shares have now been transferred to the Government of Papua New Guinea, to our trustee under the Kumul Mineral Holdings Limited.

This was aimed by Rio Tinto to give an equal shareholding between the National Government and the ABG.

The National Government already has a 19 per cent direct interest in BCL, so with the 17.4 per cent it was intended to take this to 36.4 per cent, and the transfer of 36.4 per cent direct to ABG was meant to balance the ownership of that mine so that we can continue to work together.

The National Government wants to ensure that we make the right decision for the people of Bougainville.

We are aware of the pain and torment that the people of Bougainville have gone through, and the importance of land.

They felt very strongly that they were disempowered and they did not have participation in the mine itself.

Our Government is concerned about the health, wellbeing and prosperity of the people of Bougainville.

Today, Mr Speaker, we are announcing to this House that the Government of Papua New Guinea will transfer this 17.4 per cent, to the landowners and the people of Bougainville.

With this transfer, the people of Bougainville will own a combined shareholding of 53.8 per cent of BCL.

Mr. Speaker, this Government and this House knows that this is the right thing to do.

This will ensure that for the first time in history of BCL, the landowners will be given a direct say and direct participation in the operation of the BCL mine.

This will help to alleviate some of legacy issues of the past.

This ownership will also give landowners and the people direct control over environmental issues of any future mine development that will take place.

By transferring these BCL shares to the people we are further strengthening the confidence of Bouigainvilleans in the peace process.

We are serious about empowering communities on Bougainville, and we will continue to discuss how they want these shares transferred to them.

These funds must be utilised according to the wishes of the people of Bougainville for their community benefit.

Conclusion

Mr Speaker,

In conclusion, the landowner issues that I have raised in relation to Ok Tedi, the PNG LNG project and BCL are very important for our nation.

They are important for our people, many of them are villagers who have nothing else but the land under their feet.

These are historical policy interventions by our Government.

Landowners will no longer be bystanders to activities taking place on their own land.

Their land is their heritage, their land is their livelihood and it is their future.

We must restore hope to our landowners who have been disadvantaged for many years.

Our landowners must be able to participate meaningfully, and benefit meaningfully.

They must have a say on how this land is developed and the activities that take place.

These issues I have raised today are not the end of the story.

Before this Parliament concludes, this Government will bring additional policy and legislative changes in the minerals, and oil and gas, and other resources sectors before the House.

These changes will continue to empower our people, enabling them to participate meaningfully in their resources development.

This is the commitment made in 2012 and we intend to fulfil that before we go to the polls next year.

Thank you Mr Speaker.

Interview With John Momis

The Bougainville Government is furious at statements by Papua New Guinea’s Prime Minister Peter O’Neill that he has transferred his government’s shares from Rio Tinto to the province’s landowners.

The Rio Tinto shares had been controversially gifted to the national government in June by the multi-national, and on Wednesday Mr O’Neill told parliament he was transferring them on to Bougainville.

On Thursday he clarified this to say the shares would go to the landowners and people of Bougainville and that he had no intention of giving them to the Autonomous Bougainville Government.

The shares are in Bougainville Copper Ltd which had run the long closed Panguna mine and the ABG wanted them to give it a controlling interest in the mine.

The ABG President John Momis told Don Wiseman the future of Panguna is the most sensitive issue in Bougainville.

Papua New Guinea Prime Minister, Peter O'Neill (left) and the Bougainville President, John Momis (right)

Papua New Guinea Prime Minister, Peter O’Neill (left) and the Bougainville President, John Momis (right) Photo: AFP/RNZI

Bougainville News : Momis says PNG relations are at an all time low

Momi Pon 

The PM fails dismally to respect the Peace Agreement, over mining, grant payments, and transfer of powers. Under his leadership, relations between Bougainville and the National Government are at an all-time low. The future of peace is now truly under threat.

“This is the most serious dispute ever between the two governments. I am offering the PM a last opportunity to resolve the dispute. I want a meeting with him no later than next week.”

Bougainville President, John Momis has expressed fury at the Prime Minister’s announcement

That 17.4% BCL equity recently transferred to PNG by Rio Tinto will be given to landowners and Bougainville’s people. The PM said he deliberately decided that way so that the ‘ABG does not control the shares’.

The President said he was angry because it’s the ABG that speaks for the people of Bougainville, and cannot be excluded by the PM. Further, the transfer of 17.4% the landowners is worth little. The ABG Mining Law gives them full decision-making involvement and a good revenue share if mining resumes.

“The future of Panguna is Bougainville’s most sensitive issue. I have explained to the PM several times why it is vital the ABG holds the Rio shares in BCL. He has rejected my advice. He is interfering in Bougainville. He acts in the same high-handed manner as the colonial administration and BCL when the mine began. That caused the Bougainville crisis.

“The Bougainville Peace Agreement says autonomy aims for Bougainville to find solutions to its own problems. The ABG is the government for Bougainville for all matters where powers are transferred. All mining powers have been transferred. So all mining decisions are matters for the ABG.

“If we cannot resolve the issue, the Mining Minister will use the power under the ABG law to cancel BCL’s exploration licence under the Bougainville Mining Act over the area of the previous Panguna SML. Notice has already been given to BCL to show cause why the licence should not be cancelled.

“That licence is BCL’s only major asset. Cancellation would make all BCL shares almost worthless. That includes the 19.2% BCL equity PNG has held since 1972. If the ABG is to remain in control of Bougainville mining we have no choice.

“Bougainville’s MPs must now show leadership and end their shameful silence on this issue. They must advise the PM to transfer the shares to the ABG.

“ABG action to cancel the licence will not reduce Panguna-lease landowner involvement in decisions about Panguna, or sharing in revenue if the mine does re-open. That’s because the Bougainville Mining Act gives those landowners full power to say no to grant of a mining licence. So they will be fully involved in all decisions on mine re-opening.

“The Act also guarantees landowners 5% equity (free carry) in the mining operating company. That will be worth much more than the PM’s 17.4% because re-opening will cost K20 billion, dramatically diluting all existing equity. Our Act guarantees a valuable share in the fully funded mine. The PNG 17.4% gives a small minority shareholding in a company now worth very little.

“The PM is not telling the truth.”

 

Bougainville Referendum News : A pledge by Bougainville leaders to work together

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” All four national Members: Hon Joseph Lera, Minister for Bougainville Affairs, Jimmy Miringtoro, Minister for Communications, Hon Louta Atoi, member for North Bougainville and the recently elected MP for South Bougainville Hon Timothy Masiu  all took turns to air and share their views on the importance of consultations and commitment to work together on matters concerning Bougainville.

The pledge expresses a desire for everyone to be on the same page in implementing the terms and intentions of the Bougainville Peace Agreement, a historical joint creation borne out of the efforts of the National Government and Bougainville’s political and factional leaders.”

Photo above : All four Bougainville national MPs with visiting members of Bougainville’s parliamentary committee on referendum after the Pledge

Autonomous Region of Bougainville’s four elected members in the National Parliament have come together, have spoken with one voice and have pledged they will work closely with the Bougainville’s Members of the House of Representatives.

In a small, unassuming but important, meeting over dinner hosted by the Minister for Bougainville Affairs on Thursday evening 11 August the four Bougainvillean national MPs made an unequivocal pledge that they will work with Bougainville parliamentarians in consulting, advising, sharing, working with each other and taking part in all matters of political, social and developmental interest and concern to Bougainville.

The main guests at the evening dinner gathering were members of the Bougainville House of Representatives committee on Referendum led by its Chairman Hon Joseph Watawi MHR.

Pic 1

Photo above :At PNG Parliament Minister Joe Lera MP and Chairman Joseph Watawi MHR both with other colleague members.

The committee was in Port Moresby to observe the National Parliament in session and meet with the National Parliament bipartisan committee on Bougainville matters including referendum.

The joy and exchanges of pleasantries was most obvious. At long last! It is done!

There is more than one reason to expect there will be a lot of trust and cooperation from hereon between and amongst Bougainville politicians at the National level and in the Autonomous Region.

All four national Members: Hon Joseph Lera, Minister for Bougainville Affairs, Jimmy Miringtoro, Minister for Communications, Hon Louta Atoi, member for North Bougainville and the recently elected MP for South Bougainville Hon Timothy Masiu  all took turns to air and share their views on the importance of consultations and commitment to work together on matters concerning Bougainville.

A timely and proper, in-depth, educated and adequately funded awareness on referendum was discussed as one of the most important matters needing immediate focus and attention for concerted, cooperative approach by leaders.

The visiting members of the House of Representatives Parliamentary Committee on Referendum led by its Chairman Hon Joseph Watawi also spoke in turns all expressing delight that the undertaking for the Bougainville political leaders to work together is most welcome. Members of the committee that spoke and shared the same sentiments included Hon Marcelline Kokiai MHR, Hon Thomas Tari MHR, and Hon Tepaia  MHR

The people of Bougainville as electors will find comfort, confidence and assurance and can only benefit from the undertaking by their political leaders. Bougainvilleans have often criticized their politicians  for not working together on matters that can make a difference with better political cooperation  and coordination at the elected leadership level.

The four MPs representing Bougainville in the National Parliament have pledged that they will, from hereon, work with members of the Bougainville House of Representatives in the interest of all facets of development of Bougainville. The pledge expresses a desire for everyone to be on the same page in implementing the terms and intentions of the Bougainville Peace Agreement, a historical joint creation borne out of the efforts of the National Government and Bougainville’s political and factional leaders.

After a number of attempts over many elections on both sides, many exchanges and  suggestions, to-ing and fro-ing, and at times laying blame from both sides, this is an achievement by Bougainville parliamentarians in both Houses to come to terms and put aside any differences in their commitment and approach on the ongoing political processes that requires their attention and decision.

The agreement pledged by the leaders followed two consultative meetings with the Minister for Bougainville Affairs and Chairman Watawi and members of his committee at Parliament House.

The Minister Hon Joe Lera said the National Coordination Office for Bougainville Affairs (NCOBA) which he heads as Minister has made a lot of effort to give practical effect to the roles and functions and fulfill the objective why this Office was established in the first place. With his intervention and better focus by the staff, NCOBA will be the primary coordination link between Bougainville and Port Moresby. His first task has been to get his colleagues the Bougainville national MPs to work in closer consultation with him through NCOBA.

The Speaker Simon Pentanu who accompanied the referendum committee delegation in his remarks  praised and thanked the national MPs for this development calling it remarkable because  he said it will see, in a long time, a meaningful consultative effort and cooperation by Bougainville parliamentarians at the national level and on Bougainville.

He said he will be inviting the four national MPs and expect them to take their seats in the House of Representatives in the forthcoming meeting in September and at all subsequent meetings of the House. He also said that from now on the dates of meetings of the Bougainville Parliament will be determined so they do not clash with National Parliament meetings to enable the four National MPs to attend.

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Photo Above : Meeting with PNG Parliamentary committee on Bougainville Matters and referendum, with UNDP and agencies invited as observers.

Hon Ministers Joseph Lera also informed the dinner meeting NCOBA is improving its coordinating role and under his watch he expects to deliver on the aims and objectives for which this Ministry for Bougainville was established.  His colleague national MPs praised and agreed with Minister Lera that since he assumed office as the Minister there has been enthusiasm, zest and zeal about the place.

Speaking for and on behalf of the parliamentary committee and his colleague MHRs Mr Watawi said that such a pledge between leaders has been some time coming. He said the pledge to work and stay together is like a bridge has now been built that Bougainville leaders can walk along together and cross both ways

Bougainville Tourism News : Visiting national tourism delegation confirms Bougainville tourism potential

bougainville

The Autonomous Region of Bougainville is the furthest island from the mainland of Papua New Guinea (PNG).  The island’s unique ethnicity, vibrant culture, natural scenic landscapes and historic sites offer many opportunities for major tourism development.Minister for Tourism, Arts and Culture Hon. Tobias Kulang , the PNG Tourism Promotion Authority (PNGTPA), the Office of Tourism Arts and Culture and staff from the minister’s office were in Bougainville to officially launch the Buka Town Tourism Development Initiative 2016-2020.

The project aims to develop Buka Town into a tourism hub by 2018 and connecting the Autonomous Region of Bougainville with the Pacific through the Solomon Seas Tourism Zone Initiative.

Buka

Above: Hon.Tobias Kulang with Buka town mayor, Buka town manager, Tourism Associatin Minister, Vice Minister Robert Hamal, Hon. Jimmy Minigtoro, Minister for Communication and ABG Tourism Director at the official unveiling of the Buka Town Tourism Development Initiative.

The visiting national tourism delegation was taken on a tour of popular sites and attractions in Arawa, Buin and Kieta.  During the tour Minister Kulang and the delegates met with officials from the Autonomous Region of Bougainville and representatives from the local tourism industry.

In an internal report based on the findings from the visit, the PNGTPA made a number of recommendations for the Autonomous Region of Bougainville government (ABG) with regards to tourism development, including:  developing a Tourism Master Plan, Tourism Funding support for the ABG and for the local tourism industry to form an association to better voice issues and concerns faced by the tourism industry in the Autonomous Region of Bougainville.

PNGTPA and the ABG will continue tourism discussions throughout the year.  Tourism delegates from the Autonomous Region of Bougainville will be invited to the annual Lukim PNG Nau tourism expo in Port Moresby hosted by the PNGTPA and the PNG Tourism Industry Association.

Included in delegation is Zhon Bosco Miriona ,Managing Director, Bougainville Experience Tours who has now represented Bougainville Internationally for the past 6 years travelling to Europe and Australia

Bougainville Tour Options

For further information regarding the national tourism delegation visit to the Autonomous Region of Bougainville contact PNGTPA marketing coordinator Mr. Joel Keimelo, email: joel.keimelo@papuanewguinea.travel

Front cover-Sam

Bougainville Tour Options

Bougainville Education NEWS: Quality universal education is the biggest impact

Education

BOUGAINVILLE Children. Children born in the north, central, south and out on the atolls. Born everyday.

To them we will bequeath our senses and sensibilities, values, wisdom, knowledge and cultural traditions. But other than this, what are they going to inherit from us and from the land of their birth and adoption.

As we discuss, debate and differ about approaches to free education, quality, spaces in schools, ratio of teachers to pupil, and the relevance of a fatigued and a lavishly wasteful system, many children still continue to miss out on education for life.

Education, starting with parents and in schools is the most important impact project-still-in-waiting to be rolled out in Bougainville. How we start and the reforms we make will determine where we end up. We must do it now and do it with care, responsibility and integrity.

QUALITY UNIVERSAL EDUCATION IS THE BIGGEST
IMPACT-PROJECT-IN WAITING THAT CAN RELEASE BOUGAINVILLE
FROM THE SHACKLES OF ITS COMPLACENCY

Simon Pentanu

Some children will never see the inside of a classroom. Not all may go past primary school level for one reason or other. For those that do, the system starts culling and rejecting them at the end of high school. Out of those that work harder than others and graduate through secondary schools, only some can find places and resources to pay their way to tertiary education.

There is no guarantee tertiary institutions will shape, form and despatch us our young ones back to us as daring young citizens with the skills and audacity to grow Bougainville. And, anyway the universities in this country are hapless and unprepared to offer degrees if they are poorly financially resourced and cannot guarantee a safe and secure environment conducive to learning.

Are we doing enough from parenthood to the highest echelons in leadership? We are very good and quick in creating children but not so good in looking after them. Reformation of our education system is the most important and urgent impact project yet to be embarked upon.

Education is the first frontier we must prepare our children to bear their cross, starting with their parents at home. The onus in their beginning is with the parents. After enrolment to begin in schools we must ensure that the teachers in whose trust we leave the school age children have the wherewithal to start preparing our future leaders.

Trust, confidence and skills are what every parent must expect of all teachers. It is what we must also demand from our government to achieve a sustainable goal towards quality education for all. We must all bear this responsibility if we want to transform Bougainville into a sustainable and resourceful living entity.

A society without proper and relevant education is a society that will not fully realise its potential. It is a society that will predispose its new generation to an uncertain future. More than that, without proper reforms and long term planning we will resign our children to a society susceptible to abject failure and poverty.

Education, starting with parents and in schools is the most important impact project-still-in-waiting to be rolled out in Bougainville. How we start and the reforms we make will determine where we end up. We must do it now and do it with care, responsibility and integrity.

For more info about our http://bookgainville.com/

Bookgainville Project on Bougainville PNG

Bougainville’s Carteret Islands worlds first climate refugees seek home

” At only 1.5 metres above sea level at their highest point, the Carteret Islands are some of the first to succumb to the rising ocean tides.

The grassroots Tulele Peisa group, which means “sailing the waves on our own” in the local Halia language, is hoping to relocate more than half of the population by 2020.

They have secured land for new homes on the main island of the Autonomous Region of Bougainville, to the east of mainland Papua New Guinea.”

A grassroots group in Bougainville is scrambling to relocate the Carteret Islanders before rising sea levels swallow their land forever.

By Lauren Beldi for Pacific Beat

Tulele Peisa formed in late 2006 after the Council of Elders on the islands decided to establish their own relocation program.

The group’s chief executive, Ursula Rakova, says the encroaching tides on the islands have a major impact on people’s health.

“We’re beginning to get more requests for people wanting to move because of the situation and the dire need for food,” she says.

“People are not able to eat what they should be eating.”

The storm surges not only wash away houses, but also vegetable gardens, which are critical for the islanders’ survival.

With no cash economy on the Carterets, the only source of food is what people are able to grow for themselves.

Ms Rakova says the relocations are also vital to give more space to those who want to stay on the islands.

“Giving justice to the elderly is the most important thing that Tulele Peisa can do. The elderly people do not want to move,” she says.

The group initially secured 25 hectares of land from the Catholic Church — enough to resettle about 100 people from 10 families.

The church has just made another 60 hectares of land available, where Ms Rakova says they’re hoping to relocate 25 more families.

But the access to safe and secure land is only half the battle.

“Building houses for the families to live in is our biggest hurdle at the moment,” she says.

“We have to keep looking for funds to build homes before we can actually move islanders to mainland Bougainville.”

Once they are resettled on Bougainville, the Carteret families are allotted one hectare each.

In addition to growing their own food, the relocated families also send food and planting materials back home to help supplement what the islanders are able to grow.

Tulele Peisa has also provided thousands of mangrove seedlings to prevent the erosion of the coastline, and helped to build raised garden beds.

But this will only stave off the inevitable for so long.

“Those are adaptation strategies, they aren’t really long-term solutions to containing the islands, because we know the islands are going, but we are looking at supporting our families,” Ms Rakova says.

She says the islanders want to maintain their independent way of living but that the international community should provide more support.

“The islanders on the Carterets are victims of what other people have caused and the international community needs to aid and support the work that we are doing,” she says.

“We have found our way forward [and] we would like to share the way forward with other people, but we need this process to be funded financially so that we can continue to sustain ourselves.”

Credits

  • Reporter: Lauren Beldi
  • Photographs: Tulele Peisa