” Bougainville Copper Limited (BCL), under a new regime, is keen on re-opening the Panguna mine with promises of more equitable sharing of wealth with landowners and the Autonomous Bougainville Government.
Company chairman Robert Burns was in Buka last week and met with Bougainville cabinet ministers and landowner groups to put forward BCL’s proposals for start-up by year 2020.”
Panguna talks re-open Source: Post Courier
Date: March 01,2017, 01:39 am BY SEBASTIAN HAKALITS Image Axel Mosi
According to BCL’s proposals on full operations from 2020 and beyond, it will inject US$350 million (K1 billion) a year to the Bougainville Government.
BCL has projected to pay about US$25 million (about K70 million a year) to the nine landowner associations to distribute among themselves.
The details of the BCL forward plans for Panguna were made at a presentation by the company recently.
BCL operated the Panguna mine for 18 years as a subsidiary company of Rio Tinto until it was shut down by the infamous Bougainville crisis from 1988 to 1999.
But the company was under a new regime after Rio Tinto left and during the process, off-loaded its majority of 53 per cent shares, of which a majority of 36 per cent belongs to Bougainvilleans, to the ABG.
The National Government owns 19 per cent, Panguna landowners 17 per cent and the rest other shareholders in Europe.
Mr Burns said in his presentation that BCL would engage with the ABG and landowners to fast-track and remove the impending issues to “create something very special for Bougainville”.
He said the company was ready and very much interested and committed to access Panguna and carry out the activities of feasibility and environmental studies before re-developing the mine. But he insisted that the ABG must support the company in its endeavours to remove any impediments so that it can have easy access to the Panguna mine area.
Source: Post Courier
Date: March 01,2017, 01:39 am…
BY SEBASTIAN HAKALITS
BOUGAINVILLE Minister for Minerals and Energy Resources Robin Wilson says Panguna mine is the single largest project that can move Bougainville forward.
Mr Wilson said it would ease financial hardships for landowners of Panguna and Bougainville, therefore, it was in their interest to re-open the mine. He was speaking during the presentation by Bougainville Copper Limited (BCL) of its future plans for Panguna mine. Mr Wilson urged the landowners re-open, adding. “you have the veto power and whatever decision you make must be for the good of the whole of Bougainville”.
“Let’s have one voice and move forward,” Mr Wilson said at the BCL presentation that was later graced with the initial payment of K5 million to two landowner associations in outstanding 1989 to 1990 compensation payments.
The other seven groups will be paid after completing the compiling and verifying names of families. They will be
With all due respect to the original author Article 1 above
there is a glaring technical inaccuracy in this.
Firstly, There was no “new Regime” at RIO that saw it divest it’s sharing holding.
Secondly, it didn’t “offload” them, it gifted them equally between GovPNG and ABG. and 36% is not a majority.
Thirdly the statement “The National Government owns 19 per cent, Panguna landowners 17 per cent and the rest other shareholders in Europe.” is wrong – the national government no longer owns just the 19% it was originally gifted, It now owns 36.4% of the BCL Shareholding, exactly the same as the ABG.
Fourthly, The Panguna Landowners do not own 17% at all (there might be some residual token individual shareholdings),
Fifthly. “the rest other shareholders in Europe” – well, that is just as wrong – while there are some vocal European shareholders that made some speculative investments in BCL stock, they certainly do not comprise the “rest” in fact, in the top 20 shareholders (a matter of public record) the lion’s share are institutional investors (JP Morgan, Citicorp, HSBC, ABN-AMRO), with the only significant European holding being a german chap, with a shareholding of about 1.1M shares (or 0.29% of the total)
There are issues in relation to the ownership/equity and operation of mining operations that could be structured to give the people (and government) of bougainville significant leverage moving forward in this. I have offered (through channels) to consult to Pres Momis on this, but he chooses to ignore.
In the Australian newspaper on 19 August 2016, it states:
“Anglo-Australian mining giant Rio Tinto had a 53.8 per cent stake in Bougainville Copper Limited, which controls Panguna, but last month said it would give its share to the PNG government and Bougainville’s autonomous administration, leaving both parties with a 36.4 per cent stake.
It was the first time Bougainville’s autonomous administration had owned a stake in Panguna.
Mr O’Neill told parliament on Wednesday his government — which already has a 19 per cent share of BCL — would transfer the 17.4 per cent stake from Rio to Bougainville to “help to alleviate some of the legacy issues of the past”.”
“With this transfer, the people of Bougainville will own a combined shareholding of 53.8% of BCL,” O’Neill stated.
Perhaps Peter Quodling could advise where it is set in concrete that both the ABG and PNG have 36% of equal shares?
Also, it seems ridiculous that Rio Tinto have “gifted” its shares to Bougainville and PNG when the Panguna mine has been shut since 1988, therefore non-existent.
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