Bougainville Environmental News Alert: Download: Early environmental report on Rio Tinto’s former Panguna mine highlights clear risks for communities

 

 

A new independent report reviewing satellite images and other historical data on Rio Tinto’s former Panguna mine has warned of serious risks to local communities posed by unstable mine infrastructure and flooding caused by the build-up of mine waste in the rivers.

The report, produced by global environmental firm Tetra Tech Coffey, is a preparatory desktop study on the mine, which will inform an environmental and human rights impact assessment of the mine due to commence later this year.

The report found that a levee at the junction of the Jaba and Kawerong rivers, constructed at the time of the mine’s operation, “is almost certain to collapse at some stage in the future” and that “structures and people that live on the floodplain downstream of the Jaba River would be directly impacted by flooding or landslide effect”. The report noted that “it is not yet possible to predict when the levee at the junction of the Kawerong and Jaba rivers may fail or how severe its failure may be due to limitations of current information.”

The report also warned that “the bed of the Jaba River has raised over time due to flooding and build-up of previously deposited tailings, such as at the lower Jaba River near Bato Bridge”. This “caused the Jaba River to change course in 2017 and start to flow into the Konaviru wetland and lower Kuneka Creek, changing their flooding patterns and depositing tailings into them.” The report noted that “this change of flow into Konaviru wetland is likely to remain and become the focus of further tailings deposition in the future”, posing future flooding risks for people living in the area. However, “it is not yet possible to predict when this will happen and whether the change will be permanent”.

Due to the urgent nature of these two risks, a rapid risk assessment by Tetra Tech Coffey, including on-ground inspection to verify the report’s findings, is due to commence in the coming weeks. The process has been escalated outside of the formal impact assessment and is being led by the Autonomous Bougainville Government, with the support of Rio Tinto and the Human Rights Law Centre.

The other issues identified in the report, including risks posed by old mine infrastructure and pollution of local rivers and water sources, will be examined by the formal impact assessment, starting later in the year.

Last year, Rio Tinto committed to fund the impact assessment following a human rights complaint brought by 156 local community members, represented by the Human Rights Law Centre. Rio Tinto has not yet committed to funding solutions to any mine-related risks or impacts identified through the impact assessment.

The Tetra Tech Coffey report was released by the Panguna Mine Legacy Oversight Committee  – a multi-stakeholder Committee comprising community members, landowners, government representatives, and representatives from the Human Rights Law Centre, Rio Tinto and Bougainville Copper Limited.

Traditional landowner and lead complainant in the human rights complaint, Theonila Roka Matbob, who is also the member of parliament for the area where the mine is located said:

“We welcome Rio Tinto’s commitment to investigating these problems and to supporting the Bougainville Government to escalate the serious levee risk and lower Kuneka Creek flooding risk for urgent investigation.

“This early report shows the world just some of what we live with every day. Every day we worry about levees collapsing on us, about rivers full of mine waste flooding our land and villages and about whether the water we drink and wash with is making us sick.

“We appreciate Rio’s message at the launch of the Secretariat’s office that it is committed to the Impact Assessment process. It is critical that Rio Tinto also commits to supporting the implementation of solutions to the huge problems we face.”

Keren Adams, Acting Co-CEO at the Human Rights Law Centre, said:

“This report reinforces the devastating environmental legacy of the Panguna mine and the dangerous, volatile situation that this has left local communities living in. When we visited these communities, we saw first-hand the devastating effects of mine-waste mud flows on communities’ water sources & fishing areas. We spoke to people who live downstream of the collapsing levees and fear their houses could be swept away.

“Over the coming weeks, we will be working with communities, the ABG, Rio Tinto and the Tetra Tech Coffey team to ensure that the acute levee and flooding risks are urgently assessed. We hope this will help give communities a better understanding of the risks they are living with and to identify options for addressing these serious risks to peoples’ lives and livelihoods.”

Background:

In September 2020, 156 residents from villages downstream of the Panguna mine, represented by the Human Rights Law Centre, filed a complaint against Rio Tinto with the Australian National Contact Point for the OECD Guidelines for Multinational Enterprises. The complaint was about the environmental impacts of the mine and the effects these have on the lives of people living near and downstream of the mine from things like pollution of rivers, lack of access to clean water, flooding and land destruction, collapsing levees, food shortages, disease and illness.

In 2021, Rio Tinto publicly committed to fund an independent environmental and human rights impact assessment of the mine. The company has not yet committed to fund the clean-up and remediation of affected areas and communities.

A tender process is currently underway to select an independent company of environmental, social and human rights experts to carry out Phase 1 of the Impact Assessment, which is expected to start by the end of the year and run for around 18 months.

Following the impact assessment, further discussions will be held between the company, community representatives and other stakeholders regarding the assessment’s recommendations and next steps.

The Tetra Tech report is available here.

For further background on the impacts of the mine, see the Human Rights Law Centre’s After the Mine report.

 

Bougainville Resources News : Jubilee publishes a report : Scramble for resources : The international race for Bougainville”s resources

” Scramble for Resources shines much-needed light on the practices of the new waves of mining and exploration companies in Bougainville. Given the sheer number of Australian companies involved in this stampede for Bougainville’s resources, and the consequences for people living on the island, its findings should cause Australians to sit up and take notice. ” 

– The Hon Kevin Rudd, 26th Prime Minister of Australia

Jubilee published a report revealing how the Autonomous Region of Bougainville has become the target of a scramble for resources.

 Bougainville, which is transitioning towards independence from Papua New Guinea, has attracted mining and minerals exploration companies from around the world, drawn by its valuable copper and gold reserves. Most of these companies are based in or have links to Australia. 

Download / Read the report here  Bougainville mineral wealth

Bougainville is home to the Panguna mine – once one of the largest operating copper and gold mines in the world. During its operation from 1972-1989, the mine operator, then a subsidiary of Rio Tinto, dumped one billion tonnes of mining waste into Bougainville’s rivers with devastating environmental consequences. The mine sparked a brutal ten-year conflict on the island, the effects of which are seen to this day.

Over a two-year investigation, we tracked the companies vying for the right to mine on the island, ranging from one-person outfits to global operations backed by major investors. Some are hoping to reopen the defunct Panguna mine. 

We found that at least two of the companies seeking mining rights at Panguna have been making payments to landowner groups who are likely to be involved in decisions about whether to reopen the mine. Another company made payments to the local police.

Our report also looks at two leaked corporate presentations prepared for the Bougainvillean Government that advised it to put valuable mining rights in the hands of offshore companies set up in a secrecy jurisdiction.

Our report raises questions about corporate accountability, transparency and who is responsible for safeguarding human rights and the environment when multinational companies are operating overseas.

Further, it highlights the importance of corporate political engagement being transparent, responsible and in the public interest. When Australian companies operate overseas, they should be answerable for the human and environmental impacts of their operations.

Based on the findings of the report, we recommend that Australia put in place a mandatory human rights due diligence mechanism and a corporate beneficial ownership register to hold companies to account for the impact of their operations on communities overseas.

Whether or not to reopen Bougainville to large-scale mining is a decision for the people of Bougainville and their government. It is important that anyone seeking to mine there has the free, prior and informed consent of all landowners, and that mining ventures deliver genuine benefits to local communities and avoid repeating the environmental devastation of the past. 

In solidarity, 

Jubilee team

Bougainville News May 2022 : Simon Pentanu “ The lessons out of Panguna provide an almanac of social, political, economic and environmental concerns we will do well to heed. “

For now ABG and the people have been all too aware matters surrounding mining and landowner concerns must be handled much better.

The lessons out of Panguna provide an almanac of social, political, economic and environmental concerns we will do well to heed. ” 

Simon Pentanu

The benches around the Panguna mine that were so conspicuous and became almost a landmark of this humongous pit are still visible but mostly either in a state of collapse through slow seeping water erosion or giving way, tired of lying around with no purpose to fulfil.

The pit is a massive ‘dingkung’ (hole) on Bougainville’s landscape; it is also a massive statement that man is capable of gutting the resources and riches of the Earth from its belly and leave the land wasted and torn asunder after its riches have been extracted and shipped away.

The creepers and dwarf alpine tree roots that have held the land around the rim of the open-cut mine intact have been eroded through crevices allowing rain water to seep into the pit. Some of this water turns into a turquoise-green pond after it has come into contact with copper traces in the rocks.

The Euclid trucks and electric shovels in the pit that were torched at the height of crisis and sat in neat rows as lifeless sitting ducks, looking down from the top of the pit, are no longer there. Anything that was worth salvaging to sell as scrap has gone.

There is nothing much to find, cut or sell from Panguna anymore. It would be a completely desolate place if not for the resilience of women, who – despite the land, the creeks and the jungle and fauna and flora they have lost – still go about their traditional chores attached to the land.

Any activity that maintains a semblance of normal life here involves women. They have gone back to gardening, growing vegetables on whatever arable land was spared of mining.

There are no commercial tree crops like cocoa and coconut grown in Panguna. The people’s limited source of income comes from the vegetables from the land that find their way from the Crown Prince Range to the fruit and vegetable markets at Morgan Junction and Arawa.

The more you look at Panguna and the few remnants from its mining days, the more it looks as if some gigantic monster landed here and trampled on everything with its huge feet.

It is unimaginable how a whole area of rainforest could disappear from this once-beautiful place. Yes, humans – at our very best and our very worst – are capable of many unimaginable things!

Panguna is a paradox, a Pandora’s box. Once opened, its contents cannot be easily contained. This is still a huge mineral deposit under the ground. There is no doubt it still holds the potential to largely, perhaps singly, drive Bougainville’s economy in the same as it did pre and post independent PNG, if it is reopened.

For now ABG and the people have been all too aware matters surrounding mining and landowner concerns must be handled much better. The lessons out of Panguna provide an almanac of social, political, economic and environmental concerns we will do well to heed.

Much of the problem is that we tend to start by thinking about how much money mining promises to provide and imagine how that will transform everything for the better without also thinking through otherwise. We tend not to turn our minds to the human feelings, the societal issues, the injustices and the environmental harms that arise when huge projects of this magnitude are given the green light.

Yet the views, human feelings and sensitivities are much more powerful than what money may achieve in trying to reopen Panguna. Just consider how many millions, a figure close to K20m if you include hidden costs, of our good money has been thrown over the years at discussing re-opening Panguna.

A lot of this isn’t necessarily any government’s fault, the landowners’ fault or anybody’s fault.

What some of it is, is this. When a mammoth project like Panguna, particularly an extractive project like mining, is shut down while there are still underlying conflicts and competing interests in a complex land tenure system, it is very difficult to get traction with anybody unless you satisfy everybody.

In a society where land is not owned individually, but its use and tenure is shared, it is impossible to satisfy everybody regardless of how many MOUs, MOAs or similar pledges are signed. Or for that matter, how many reconciliations are done.

There are tried and tested ways to resolve land claims, land feuds and land grabs in traditional societies. These involve methods where the settlement of a dispute doesn’t benefit one group, one party, one clan or family, while disadvantaging others. Any resolution reached cannot have adverse impacts for some and benefits to others if it is to be widely accepted and shared.

Traditional Melanesian society is highly egalitarian.

It does not necessarily fit with a system where land is regarded as a valuable commodity – a resource that can be bought and sold, used and disposed of.

Paying heed to heartfelt feelings is critical when dealing with resource issues, as the following words from a New Zealand journalist’s interview with the late President Joseph Kabui remind us:

“The Panguna mine did a massive damage to the environment of Bougainville. Damage that affected the river system in the immediate vicinityi of the mine and of course all the way down to the sea.

The river that I once swam in as a young boy spearing prawns and fish, eels, whatever, the normal life of the river disappeared right in front of my eyes. It is still dead, it will never come back to what it was before.”

Land is not only the stuff we walk on, are buried under, sow gardens into, go walkabout on and hunt in.

Land is also the rivers and creeks, the shrubs, trees and forests, the insects, birds, lizards and marsupials the same land supports. When people sense a threat or get the notion they might be dispossessed, they will fight and protect their land with their lives if they have to.

No wonder Panguna continues to be a difficult problem to resolve, where good money has been thrown after dubious decisions. It is always better to start well at the front end of a complex equation than to go in, boots and all, make a mess then try to fix up issues from the back end.

Let us hope the Tunuru Agreement, which was openly representative and inclusive of the main custodial clans of traditional land in Paguna and its upper and lower tailings, has done things differently and is given a chance to succeed in ways other agreements did not.

Because if we continue to do the same things over and over again, but expect a different result, our hopes may collapse like the benches around the mine pit.

PHOTO: “Any activity that maintains a semblance of normal life here involves women. I am thankful we have women elected into our Parliament.”

 

Bougainville News alert : Hon. Ishmael Toroama President statement commemorating the first year of the #Bougainville Independence Ready Mission

It has been one year since my government launched the Bougainville Independence Ready Mission on April 1, 2021.

My Government’s Independence Ready Mission takes on a three-pronged strategic approach that requires preparations for independence to be implemented internally, domestically and internationally.

In commemorating the first year of implementing this program, I wish to remind us all Bougainvilleans that preparing Bougainville for independence is no easy challenge.

It requires government and people to work together and to work harder in this process to actualize our political aspiration for independence.

For us in Bougainville, we have established our Constituency Independence-Ready Committees across all our thirty-three constituencies through the internal prong of the Independence-Ready Mission.

As President, I call on all Bougainvilleans to work collaboratively with these Committees to progress nation-building and state-building activities at the ward levels.

We can only progress through people-participation in development, adopting social responsibility standards, having a change of mindset and cultivating an attitude of self-reliance in our families and communities.

Our political timeline has been set; ‘no earlier than 2025 and no later than 2027’ and it requires a whole-of-government approach to our independence-readiness.

As Bougainvilleans, we must embrace this timeline and see it as a matter of urgency to get our house in order.

In working towards independence-readiness, my government will ensure that we have the proper systems in place that promotes democracy, transparency, accountability, peace and good order in our society.

In the same manner, I call on every Bougainvillean man, woman and child to stand firm with your government in this process. Our 97.7% vote for independence proves that we are united in this process and we must not shy away from the challenges that lie ahead of us.

We stood united as one people when we voted for Bougainville’s independence, and we must stand firm through this journey to deliver independence together for Bougainville.

May God Bless us All.

Hon. Ishmael Toroama
President

Bougainville Environment News : Jaba River: Do we finally have a sustainable, economic and culturally viable solution to clean up the disastrous environmental legacy of the Panguna mine operations ?

Three years ago, after no national or international action from anyone on a solution to environmental damage for the Jaba River Tailings over 40 plus years, Bana District reached out to some old friends in Australia and asked if there is anything that could be done to stop the deteriorating living conditions for people living along the river.

Often mining activity throughout the world have had a bad name for environmental impact.

This certainly is the case on Bougainville where tailings discharge from the Panguna mine has silted up the Jaba River and overflowed levees, (constructed during mining operations to provide some river adjacent communities tailings and flood protection) covering agricultural land destroying the ability of the local communities to grow their crops, keep farm animals and access clean drinking water.

 

An estimated billion tonnes of mine tailing’s pollution was spread downstream from Panguna, spreading across the Jaba-Kawerong river delta stretching 40 kilometres to the coast.

Fortunately thanks to the 3RE Group, an entrepreneurial Australian collective of environmental, mining and industrial individuals with a long positive history in Papua New Guinea there may be a solution in sight.

3RE Group for free has engaged some of the best consultants in the world to work on the problem After 2 years of sample testing, analysis and modelling of new high tech separation techniques an answer was found.

The removal of some 30 plus kms of river will produce aggregates, minerals and some precious metals that include gold and silver, that will not only clean up the tailings but provide a long-term revenue for the local communities as well as investment in health, education, and training

The Jaba River Tailings can be recycled and exported, it will need K300,000,000 in new infrastructure to achieve this and over 1000 new direct jobs for locals.

“All of this can be funded by offshore investment, zero cost to ABG. It will also provide the framework for integration of many new businesses that will bring much needed prosperity, increased health and education to all sectors of the Bougainville community “said a spokesperson for the 3RE Group

Picture above : Briefing at ABG president residence on 3RE Group Java River Rehabilitation project.

This multi-faceted project needs urgently full support of the communities and the new Autonomous Government of Bougainville (AGB) and following successful investment there will a 20 year project life and economic and culturally viable solution to clean up the disastrous environmental legacy of the Panguna mine operations

For more information go to www.3regroup.com.au

 

Bougainville Mining News : Panguna Landowners and ABG agree to reopen Panguna Mine

Landowners from the Panguna Mine area and the Autonomous Bougainville Government have reached a joint resolution to re-open the Panguna Mine.

The joint resolution was signed by clan chiefs and representatives from the five major clans of the Panguna area – Basikang, Kurabang, Bakoringu, Barapang and Mantaa.

The signing took place at the end of a three-day summit for the Panguna Landowner groups hosted in Tunuru, Central Bougainville this week.

ABG President Hon. Ishmael Toroama acknowledged and congratulated the five clans and their respective leadership for taking the bold stand to re-open the Panguna Mine.

He said the signing of the joint resolutions signifies the beginning of a new chapter for Bougainville.

“Today marks the ending and the beginning of a new chapter, a chapter to realize Bougainville’s independence,” he said.

President Toroama reassured the landowners that the government will continue to be there to protect the people and their resources through relevant laws passed through the Bougainville Parliament.

He urged the landowners to continue to use the government as a tool to control what rightfully belongs to the people in terms of resources.

The Toroama-Nisira government is confident that the re-opening of the Panguna Mine will be a major booster for Bougainville’s economic future and at the same time, guarantee Bougainville’s political independence.

Following the signing of the joint resolutions, the ABG through the Department of Mineral and Energy Resources and other relevant departments, will work together with the landowner groups to facilitate the process towards the re-opening of the mine.

Bougainville News Alert : Rio Tinto agrees to independent human rights assessment of Bougainville mine

The mining agreement, negotiated by Rio Tinto with the Australian government in the 1960s, did not include significant environmental regulations or liability for mine site rehabilitation.” 

Multinational mining giant Rio Tinto has agreed to fund an independent assessment of the human rights and environmental impacts of its former Panguna copper and gold mine in Papua New Guinea’s autonomous region of Bougainville.

Rio Tinto abandoned the mine in 1989 during a brutal civil conflict on Bougainville and now no longer holds a stake after controversially divesting its shareholding to the PNG and Bougainville governments in 2016, rejecting corporate responsibility for environmental damage.

The mining agreement, negotiated by Rio Tinto with the Australian government in the 1960s, when PNG was a colony, did not include significant environmental regulations or liability for mine site rehabilitation.

An estimated billion tonnes of mine tailings pollution has now spread downstream from Panguna, spreading across the Jaba-Kawerong river delta stretching 40 kilometres to the coast.

“This is an important day for communities on Bougainville,” said traditional landowner and MP Theonila Roka Matbob, representing the communities involved in the complaint.

“Our people have been living with the disastrous impacts of Panguna for many years and the situation is getting worse. The mine continues to poison our rivers.”

“These problems need to be urgently investigated so solutions can be developed and clean-up can begin. Today’s announcement gives us hope for a new chapter for our people.”

Last November, a complaint by 156 landowners against Rio Tinto was accepted by the Australian government for mediation under its obligations as a member of the OECD club of wealthy nations.

Their environmental and human rights claim states: “The mine pollution continues to infringe nearly all the economic, social and cultural rights of these indigenous communities, including their rights to food, water, health, housing and an adequate standard of living”.

“This is an important first step towards engaging with those impacted by the legacy of the Panguna mine,” Rio Tinto chief executive Jakob Stausholm said in a statement.

“Operations at Panguna ceased in 1989 and we’ve not had access to the mine since that time. Stakeholders have raised concerns about impacts to water, land and health and this process will provide all parties with a clearer understanding of these important matters so that together we can consider the right way forward.”

“We take this seriously and are committed to identifying and assessing any involvement we may have had in adverse impacts in line with our external human rights and environmental commitments and internal policies and standards.”

The Autonomous Bougainville Government (ABG) has confirmed it supports the process.

Rio Tinto has not yet committed to funding clean-up and remediation of the mine.

Decade-long crisis

The Panguna mine was one of the world’s largest copper and gold mines, generating an estimated US$2 billion in revenue for Rio Tinto during the 1970s and 1980s.

Disputes over jobs for landowners, environmental pollution and distribution of profits sparked a decade-long ‘Bougainville Crisis’ civil war in 1989 that claimed the lives of nearly 15,000 people.

Landowners also want Rio Tinto to fund long-term rehabilitation efforts.

“This assessment is a critical first step towards addressing that legacy,” said Keren Adams, a legal director at the Human Rights Law Centre.

“However, we stress that it is only the first step. The assessment will need to be followed up by swift action to address these problems so that communities can live in safety.”

“Communities urgently need access to clean water for drinking and bathing. They need solutions to stop the vast mounds of tailings waste eroding into the rivers and flooding their villages, farms and fishing areas. This is what remediation means in real terms for the people living with these impacts.”

Estimates of the cost for full mine site and downstream tailings rehabilitation is in the billions of dollars.

“It’s destroyed the sago palms and other trees … and destruction continues. You can see where the fertile land is covered over,” said downstream landowner and claimant George Posiona.

“It’s taking up a large area and we believe in a few years time we will not be able to plant food. It continues to flow down and destroy this land.”

The Department of Treasury’s OECD National Contact Point (AusNCP) is responsible for mediating the dispute, issue findings, and recommending action to address any breaches.

The announcement comes as Rio Tinto continues to face a federal parliamentary inquiry into the destruction of the sacred Aboriginal Juukan Gorge cave site in Western Australia which contained evidence of 46,000 years of human use.

Bougainville overwhelmingly voted for independence from Papua New Guinea in 2019 and hopes to gain nationhood by 2027.

Debate continues over whether to reopen the mine to underpin the economic security of Bougainville.

 

Bougainville News Alerts : ” Independence Readiness ” President Ishmael Toroama: Parliamentary Address, June Parliament Session

Mr Speaker, Honorable members of Parliament, much has transpired since the formation of my Government and I am happy to brief this House on some of these achievements in the 10 months that we have been in government.

Mr Speaker, I will start by making a few statements about the important work on “Independence Readiness”.

Mr Speaker, as all members know, we came into this house on the back of the 97.7 percent Referendum Vote for independence.  And as a deliberate intent, one of the key strategies that ABG has embarked on, is the Independence Readiness program which comprises of three Prongs.

We are all currently actively engaged in the “Internal Prong” of getting all our communities ready for independence. Last week, we had the opportunity to engage with the Ramu and Lato constituencies of South Bougainville. Last month we met with the Halia and Nissan Constituencies.  And everywhere we travel, we are met with high enthusiasm and spirit.

Mr Speaker, all members must familiarize yourselves with the program and the key messages, go out and make communities independence ready. The length and breadth of Bougainville must show a united stand to the rest of the world.

Mr Speaker, with regards to the International prong, BEC had recently approved a policy paper on cultivating international support under the leadership of the Minister for the Dept of Bougainville Independence Mission Implementation.

Mr. Speaker, under the National Prong, my Government and the Leaders of Bougainville, continue to consult with the PNG Government on the Referendum Result.  We are on very cordial terms with the PNG Government with much good will and understandings on both sides as we journey towards our destiny.

Mr Speaker, Honorable Members, as you are all aware, at the Kokopo Consultations, I presented the Bougainville position based on the Oasis Resolution. Both parties signed a Joint statement agreeing to work on:

  • Defining the meaning and process of Ratification
  • The constitutional issues relating to the Referendum results and the tabling of the consultation outcomes in the National Parliament
  • Developing a Joint Roadmap on the Post Referendum Consultations
  • And to fully implementing the Sharp Agreement

Mr Speaker, the Bougainville Executive Council has recently approved a paper on the International Prong aimed at cultivating friendly relations in the pursuit of our course but through currently existing arrangements under PNG. There are a number of aspects to international relations such as political, social, cultural, economic and trade. We will have a bit more understanding on how these aspects will be managed within ABG in due course.

Mr Speaker, One final note on independence readiness is that “we, as leaders and as public servants, are the public face of Bougainville” and we must maintain ethical standards of behavior at all times. The kind of behaviors reported recently in the media should not happen again.

As your President, who is directly mandated into this chair by the people, I want all structures and systems of government, including all Committees of this House, to all be aligned and working towards our common goals and not be distracted by agendas outside of this Parliament.

Mr Speaker, at this juncture, let me announce and congratulate the new Minister for Public Service, the Member for Baba, the Honorable Emmanuel Kaetavara. Yours is a key Ministry that provides structural leadership and legislative oversight for the Human resources in the delivery of services and development. The challenge of your Dept is to reinvent itself and align its relevance in an evolving Presidential system of Government.

May I also thank the former Minister and Member for Lato for his services in the 9 months of his appointment. You will continue to serve the people of Bougainville through your Constituency and through this House.

Mr Speaker, I now want to highlight key achievements by my Government since our formation.

Mr Speaker, the Political Control agenda has already been noted above under the Independence Ready Program. I am pleased with its progress and much credit must go to the Minister responsible and to BIMAT. BIMAT is an example of thinking outside the box.

Mr Speaker, another achievement is the signing of the Joint Communique, which basically recognizes the historical journey undertake by the two governments under the Bougainville Peace Agreement and commits the two governments to jointly consult on the Referendum results for independence.

Mr Speaker, the Sharp Agreement, which was signed on the 13th of May, does away with the Constitutional requirements under section 295 (a) and (b) regarding the transfer of powers and functions under the Autonomous arrangements. This paves the way for the consultations to focus on the political agenda while the Administration deals with the implementation of the remaining powers and functions. This is a challenge in itself and I urge the administration to rise up to the task.

The Bougainville Position tabled at the Kokopo Consultation presents a detailed five-year timeline from 2021 to 2025. Each year comprises a number of key Milestones to be achieved with independence fully declared during 2025 (and perhaps set 1st September 2025 as the date for declaration).  The Kokopo Resolutions now provide the strategy for both parties to consult over the Bougainville position through the coming consultations. This will need careful analysis and planning going forward.

Mr Speaker, in this regard, my Government has established two secretariats specifically to attend to the intellectual and strategic needs of our political journey. The Bougainville Independence Mission Advisory Team (BIMAT) under the Dept of Independence Mission Implementation is providing the intellectual grunt in our political engagement with PNG.

The other Secretariat established is the Bougainville Strategic Research Planning & Monitoring Secretariat (BSRPMS) which will take lead on the higher level Long -Term Vision and Development Strategies and the review and restructuring of Government in line with emerging scenarios.

Mr Speaker, it is very pleasing to note the capabilities and institutional memories housed in both Secretariats, which complement the Public Service and I ask the rest of the administration (especially the Finance Dept) to accord timely support to these two bodies.

Let me now make a few statements about the Economic Control Pillar – State Owned Enterprises and Internal Revenue

Mr Speaker, since the formation of the post crisis Bougainville Government, a total of 20 Government owned Business Enterprises have been set up. As of this year, only 4 of these businesses are operating while 16 have closed. Out of the four that are still operating, only two are contributing revenue to ABG. This is a failure rate of 80% and is a serious indictment on the performance of past governments.

There are a lot of lessons to be learnt going forward in how we plan, manage and conduct business. We currently only generate 24% internally of the revenue needed to run government and to deliver services and development.

Mr Speaker, in order to avoid the problem of poor business performance in the future, my Government is working on setting up Business management systems that will uphold good management principles against the pilfering of funds in the past.

My government will also soon announce new business ventures to the value of US$19m (about K68m) and announce investments totaling US$100m (K400m) by early 2021 creating employment of about 2,000 jobs to the economy.

Mr Speaker, with regards to Panguna, the Veterans Association of Panguna, under the Leadership of the Vice President is preparing the ground work for the removal of the remaining bones in and around Panguna. This will clear the way for any talks relating to the possible reopening of the mine.

An overall Economic Development Strategy is being formulated for presentation at the Economic Summit which is now postponed to November this year.

Mr. Speaker, whilst I am on the subject of Government revenue, I am happy to mention to this sitting, that the PNG Government has released K40m to ABG as first instalment of the K100m per year promised by Prime Minister Hon James Marape at the February JSB in Arawa.

Mr Speaker, for the information of members, funds owed to Bougainville by PNG Government include:

  • The K1billion over a ten-year period (K100m per year)
  • The PIP K100m per year under BPA section 50
  • The RDG outstanding grants of K624m up to 2019
  • The K81m currently outstanding since 2018

Our officers need to engage constantly with Waigani to draw this money down.

Mr Speaker, on Taxation matters, the Arawa JSB, also agreed on a new Taxation arrangement for ABG. The Bougainville Peace Agreement stipulates for 70 percent of Taxes collected from business conducted in Bougainville to be held in Trust by the PNG Government and 30 percent to be allocated to Bougainville annually. The February JSB agreed with the Prime Minister Hon James Marape, to reverse this situation in Bougainville’s favour by now allocating 70 percent to Bougainville and keeping 30 percent in Trust by PNG IRC. When effected, this will contribute further to increasing our internal revenue.

Mr Speaker, under Law and Order, the Law and Order sector through the Dept of Law and Justice continues to make headway in “institutional strengthening” to better position itself to deliver on its mandate. We have recently witnessed the ground breaking for its new office building in Kubu. It has also recently held consultations with its PNG counterparts to strategize on legislative matters relating to the powers being transferred under the Sharp agreement.

Mr Speaker, on Corruption or perceptions of corruption continues to be a major stumbling block to the government both at the leadership and administrative level. Some of the practices, like officers hiring their own vehicles for project monitoring visits must stop. At the Leadership level, we must focus on legislation and policy making and leave matters of implementation to the appropriate bodies. A key point to highlight here is the ABG owned enterprises with 80% failure rate because of political influence.

Mr. Speaker, I am happy that BSP has recently paid K500,000 to the ABG revenue but this announcement should not shroud the monies previously diverted by the trustees of this shareholding. ABG through the relevant agencies should recover these monies.

The key approach to combatting corruption is to follow proper systems and processes that exist or to create new systems where none exist. There will be many changes as Bougainville transitions from an Autonomous Government to a future sovereign state and there will be times when we have to think “outside the box” to find solutions because the normal way of doing business will not be adequate.

Mr Speaker, however, in saying this, I am not advocating “a free for all situation”. We must still be strategic, coordinated and systematic!! The ABG Administration will still take lead in implementing normal delivery of “services and development” whilst BIMAT will take lead in any forward thinking and implementation on the political consultation front and the Bougainville Strategic Research Planning & Monitoring Secretariat will take lead on the higher level Long -Term Vision and Development Strategies and the review and restructuring of Government in line with emerging scenarios.

Mr Speaker, on the 2022 Budget, the Administration has just concluded the formulation of the 2022 Budget at its workshop in Arawa. This will be the first budget that will reflect the Six Strategic Priorities under my Government. As noted elsewhere in this speech, my Government has already progressed most of my Governments priorities except for the Long-term Vision and Development Strategy and Mobilizing Civil Society and the Private Sector.

Plans are underway for an extensive Bougainville wide consultation process, beginning in July, at the districts & communities regarding the Bougainville Long term Vision and Development Strategy.  It is my intention to present the final product to Parliament in the first quarter of 2022.

Mr Speaker, the Long-term Vision and Strategic Plan will be the Blue Print providing the Framework for subsequent Medium and Short-Term Development Planning by the Administration under subsequent governments. It will also provide the framework for   mobilizing the Private Sector and Civil Society.

My Government, intends to conduct a comprehensive “resource mapping”, using the latest modern technology, of all our resources (natural or man-made) on which the detailed Long-Term Plan will be based.  A knowledge of the resource inventory and its monetary value will be fundamental to the economic growth of an independent sovereign Bougainville. We will not be fooled by any external interests once we complete this exercise.

Mr Speaker, the concept of Regional Development Authorities (RDA) was also legitimized at the recent Budget Planning meeting in Arawa. It must have the capacity and ability to deliver on its mandate and should not simply be another government office that will chew up scare resources.

Mr Speaker, the challenges are many and obvious as we transit into a future political status. As we have experienced so far, the consultation timeline and process are going to be quite intensive. Both the leaders and public servants will need to balance the domestic responsibilities of providing governance, services delivery and development with that of participating in the political agenda. Ministers and Heads of Departments should pay particular attention to this challenge.

Mr Speaker, another challenge is “funding”. Both Bougainville and PNG are being assisted in the consultations by the donor community through the United Nations. We will need to manage expectations of our various stakeholder groups in how we all participate in the consultation process through fair representation whilst travelling on a crowded journey. It will not be possible to take large delegations to all consultations.

Mr Speaker, there are many other challenges which I am sure all levels of Bougainville society are well aware off and are taking appropriate remedial measures.

Mr Speaker, the journey ahead is not going to be easy on all fronts as we play catch-up on missed opportunities over the last 15 years. All we ask for from all our citizens, through your respective leadership positions, is their patience and support.

Thankyou all

 

Bougainville News Feature : If we have all learnt anything from Panguna, it is this. We have not learnt enough.

 ” PANGUNA and its landowners have had a mixture of these feelings and positions during the time of mining but have not felt much this way since the mine was forcibly shut down at the end of 1989. That is 31 years ago now.

The ordinary folk up there that still wake up to an altered landscape with their women – mothers of the land – are still asking what they did to deserve this as they eke out their livelihood from their usable plots of land which are mostly on hillsides.” 

Contributed by Simon Pentanu

Their biggest local hero Francis Ona came to prominence when he took a stand against his own extended family members and BCL for what he saw as an unfair and unjust payment and distribution of royalty, lease, inconvenience payments and other payments.

Ona was incensed by what he thought and saw as the vanguard of RMTL Executives supported by BCL against a mounting dissatisfaction of younger landowners who felt their grievances and interests for the share of the pie was not being given due consideration.

Their growing frustration culminated in an attempt to out-vote and replace the elderly and duly elected PLOA whose numbers comprised the majority in the RMTL Executive. Rather defiantly, if not boisterously, an AGM was convoked by Francis with this specific aim in mind.

Let us say the rest is history now, a short and sad history that BCL and the rest of Bougainville became embroiled in without any indication or warning that armed conflict, menace and mass exodus was going to follow. It is a history that is intertwined with irreverent behaviour, blood letting and a descent into the abyss that we must never follow or repeat.

The fall out from the voluntary pull out and disbursement of shares in BCL by Rio has developed into arguments and differences between some of the same people that Francis took a singular hard line stance against. If time heals, up in Panguna the healing has been slow though not exactly without some positive progress.

The reverberations have been still audible and the fractures have been still visible. In the mean time everyone else is still trying to figure out what Panguna means now after Rio has pulled the plug and cartwheeled out of Bougainville.

Well not quite! Rio was left in both an unenviable and untenable position that left it little choice but to make the commercial decision it made. The pros and cons, the timing and implications of Rio’s decision will long be argued, possibly in the Court rooms as well. What is most certain is Rio will never find any favour in Bougainville by landowners. Not in any obvious way anyway.

In the beginning everyone rushed into Panguna like honey bees taking to a new beehive. To the mining investor at the time it was seen as a cash cow ideally located in the largely virgin Crown Prince Range. The forest was dense green, the creeks and flowing rivers and estuaries pristine and bird life and marsupials adorning their habitat in plentiful numbers.

For everyone, including the often bewildered, sometimes excited and expectant landowners this was probably the best opportunity to catapult Bougainville from the backwaters to unimaginable affluence. No one foresaw or imagined the stuff of effluence that everyone from miner to landowner, hardliner to politician and the environmentalist would be mired in.

When the decision was made to mine, its timing and the set and scene was ideal. To the colonial administering authority Panguna provided the perfect investment to finance the Territory of Papua and New Guinea which was already showing signs that its political independence was emerging as an issue for open and frank discussion with Canberra. To Australian PM then, John Gorton, and his Ministers at the time Charles Barnes, Andrew Peacock and those in Konedobu like David Hay, APJ Newman, Tom Ellis and others Panguna looked a very promising prospect if Independence was going to be forced and fostered on PNG sooner than later.

As the turnstiles sometimes turn in history, it turned out it was Gough Whitlam and his Labour Government that gave the inevitable nod to Independence.

The dye was cast both for Panguna to go ahead as a real mining proposition and for the inevitable political process and transition to Independence for Papua and New Guinea as a single entity and as one country.

I’m not sure whether Panguna today is lying flat on its face or lying down on its belly. I don’t think it is either. After the landscape has been defaced and the booty and loot is gone there isn’t much of the old Panguna face that is left to be recognizable any more. And it has no belly to speak of or talk about after it has been gutted out.

But for the insatiable world hungry for minerals there is not any aota of doubt that Panguna and and its surroundings and vicinity still hold billions worth of copper, gold and silver below people’s customary land.

So what else is left of Panguna? Among the LOs they are pitted at different ends of the same table but they are seeking the same outcomes in different ways with different foreign interests.

The remnants of the old and new LOs may not be obviously visible but some of the same players that bore much of the brunt of Francis Ona’s spite and antagonism still differ in their demands and approach, even the modus operandi on how the last of the spoils from the damages might be shared or divided and how the mine might be regurgitated into the future.

What is more and more stark is, in the landowning family and extended family the differences and cracks in their arguments and claims about who has more rights to entice investors or negotiate with ABG or deal with anybody for that matter has never been more uncertain and never more confusing.

The alliances and dalliances landowners have formed with foreign interests has also added to the differences and arguments, and even doubts, as to who has more rights and claims to SML and other leases up there.

In this regard the Bougainville mining law has been tested more or less whether it adequately covers the interest of the landowners as espoused or intended in the preamble and opening provisions of the Bougainville constitution.

IF we have all learnt anything from Panguna, it is this. We have not learnt enough.

 

 

Bougainville History of Independence : Buckingham Palace letters: Queen’s secretary compared Bougainville’s bid for independence to Scotland

” The Australian governor general John Kerr warned the Queen that a plan for Bougainville independence was not lawful, was opposed by Australia and Rio Tinto copper interests, and would increase regional instability and force Australia to hand more financial support to Papua New Guinea.

Originally published in the Guardian

Picture above  : Almost 100% of Bougainville voters backed independence in last year’s referendum but palace letters show Australia’s governor general John Kerr told the Queen that such a move ‘cannot be done legally

The so-called palace letters, a trove of previously secret royal correspondence, shows the Queen’s private secretary Martin Charteris responded by comparing Bougainville to Scotland and its hopes that oil reserves could fund independence.

The documents released by Australia’s national archives shed new light on the royal attitude to the secessionist movement in Bougainville.

Momentum for Bougainville to secede from Papua New Guinea grew as PNG itself declared independence from Australia in 1975, while retaining the Queen as its monarch.

The region is home to the vast Panguna mine, then the world’s biggest open-cut copper mine, owned by Bougainville Copper Limited, which then had Conzinc Rio Tinto as major shareholder.

Tensions over the mine would spark a bloody civil war that killed an estimated 20,000 people between 1988 and 1997.

On 19 August 1975, Kerr briefed Charteris on his “thinking” on the growing secessionist movement in Bougainville and a plan to secede unilaterally from PNG in September, the same month PNG secured its independence from Australia.

“This cannot be done legally,” Kerr wrote.

He said Rio Tinto was in favour of a “united Papua New Guinea”, though he said that may change if it deemed its long-term interests lay elsewhere.

Australia also had good reasons for opposing the secession, he said.

“There are good reasons from Australia’s point of view why a united Papua New Guinea would be desirable though achievement of this is probably not essential to Australia’s national interest,” he wrote.

“If Bougainville successfully secedes, Papua New Guinea would be weaker economically, and hence likely to be more pressing, so far as Australia is concerned, for economic support.”

“Bougainville secession would also increase the possibility of instability in Papua New Guinea in other areas.”

Kerr also lamented Australian aid cuts to PNG at the same time, saying they were “most unfortunate … on the very eve of independence”.

The Queen read Kerr’s advice, the letters show.

In replying to Kerr on 28 August 1975, Charteris compared Bougainville to Scotland and the way oil resources drove hope for Scottish independence.

He said the possibility of trouble was “disturbing” and that “we must hope that matters can at least be satisfactorily contained”.

“I suppose copper stands to the Provisional Provincial Government of Bougainville as does oil to the Scottish Nationalist Party,” he said.

“It gives them at least the belief that they could stand on their own two feet and the wish to do so, so that they can keep the wealth of their territory to themselves.”

Charteris made it plain that Kerr’s advice on Bougainville had reached the Queen.

“The Queen has of course seen your letter and has read it with much interest,” he wrote.

The 1975 momentum for secession was dealt with by granting the region more autonomy.

The decade-long civil war led to further autonomy for the region, and last year it voted overwhelmingly to become independent from PNG in a non-binding referendum.