Bougainville News 2016: Momis raises concern on PNG Government takeover of Bougainville Copper Limited

Momis2016

ABG President, Chief Dr. John Momis says that he is very concerned at the discussions been held between RIO TINTO and the Papua New Guinea Government to purchase RIO’s 53.83 percent shares in Bougainville Copper Limited (BCL)  for $100 million.

In his address to the ABG House this week, President Momis said that he has been approached by several senior National Government officials including the Prime Minister, Peter O’Neill  the last time during the December’s JSB meeting in Kokopo.

President MOMIS said that the people of Bougainville must be assured that the ABG has made no deal with PNG.

Instead we are putting a very strong Bougainville position to both PNG and RIO that environmental clean-up is now the key issue and that if there is any transfer of RIO’s shares, it must be to Bougainville.

President Momis said that the minerals in Bougainville belong to Bougainvilleans as our blood has been shed over those Panguna Minerals, yet PNG wants to buy RIO’s shares so that it can own Panguna and its minerals.

One comment on “Bougainville News 2016: Momis raises concern on PNG Government takeover of Bougainville Copper Limited

  1. The hidden agenda is the mining company.
    Why did the PNG Government Jet, KUMUL land at the Aropa airport in Bougainville on Christmas day?
    President Momis has admitted that he was invited by the PNG Prime Minister, Peter O’Neill for a meeting with RIO TINTO in Singapore on December 17th, 2015.
    In 2016, the PNG State-owned Kumul Mineral Holdings Limited (KMHL) previously known as Petromin “will continue to operate under the new legislation and will hold the State’s back in right in all mineral projects”.
    (See p57, Petromin 2014 Annual Report)
    Where are the safeguards for Bougainville?

    09 April 2013
    The Kumul Holdings mystery – where are safeguards?
    BLAIR PRICE | PNGIndustryNews.net

    THERE are concerns about the “closed door” nature of recently unveiled Papua New Guinea government plans to consolidate its mining, petroleum and business assets into a state-owned “Kumul structure”, which includes its stakes in Ok Tedi and PNG LNG.

    PNGIndustryNews.net’s exclusive story on the dismantling of Petromin first revealed the Kumul name last week and subsequent media coverage forced prime minister Peter O’Neill to shed more light.

    According to the Post-Courier, O’Neill said all of the state’s mining interests, which includes the Ok Tedi Mining Limited, Ramu Nickel and Bougainville Copper stakes held by Mineral Resources Development Corporation, would be transferred to Kumul Mining Holding Limited.

    As flagged by PNGIndustryNews.net last week, all the government’s petroleum assets will be transferred to Kumul Petroleum Holding Limited including the 16.6% PNG LNG project stake held by Independent Public Business Corporation.

    However, IPBC will reportedly be wound up like Petromin with all of its non-mining and non-petroleum assets to be transferred to a new entity simply called Kumul Holding Limited.
    IPBC is already a storehouse for state-owned enterprises with just some including PNG Power, PNG Ports, Post PNG, Telikom PNG, Air Niugini, PNG Waterboard, Eda Ranu, National Development Bank and Motor Vehicle Insurance Limited.

    While all of the Kumul companies reportedly are “now being developed” and require various legislative changes, there are also plans for an overarching Kumul Trust which will feature previous PMs Grand Chief Sir Michael Somare, Sir Julius Chan and Paias Wingti as shareholders and current PM O’Neill as trustee.

    O’Neill said the restructuring would remove inefficiencies but there is concern about what kind of fiscal management safeguards will be in place under the Kumul structure.

    In the case of IPBC, Institute of National Affairs PNG executive director Paul Barker said it had established mechanisms to provide a degree of accountability even though some were undermined in the last decade.

    “The new mechanisms at this stage certainly leave a lot of questions,” he said of the Kumul structure.

    “They do involve very new and unchartered waters with respect to these constitutional amendments and trusts and the use of various current and past PMs as shareholders and the current PM having veto power in that role.”

    He told PNGIndustryNews.net that the public should be demanding all the details and really “a lot more explanation about this shareholding proposal”.

    “Maybe there is some logic in terms of a rationalisation but there are a lot details that need to be spelt out,” Barker said.

    “And certainly it needs to be very much in the public eye because this seems to have been pushed through – very much behind closed doors – and I’m not sure that many of the cabinet members yet alone the wider public and state entities were aware of all this.

    “It came out of the blue.”

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