Bougainville weekly news summary: Mining,Mona ,Palm Oil, Sir Peter Barter and referendums

Mona

 

Picture above Mona Festival which starts today in Buka

LONG TERM BOUGAINVILLE MINING LAW PROGRESSES

BY JENNIFER NKUI

A workshop was conducted in Buka last Friday to brief the ABG Cabinet and senior Bougainville public services officers on the draft Act of the Long Term Bougainville Mining Law.
The workshop was conducted by experts and the Bougainville team to seek the views of the ministers on the draft Act.
In a joint statement, deputy president Patrick Nsiria and minister for natural resources Michael Oni said the mining department has worked for seven years to develop a policy framework for a long term mining law which will meet Bougainville’s special needs.
They said the ABG’s aim was for a new law that truly meets our special needs and follows the world’s best practice or is even better than that.
They added that the cabinet members were satisfied that the long and detailed draft Act and regulations give effect to the ABG’s previous decisions on policy and give us a best practice law.
The deputy and his minister explained that the draft ‘Long Term’ Act builds on the foundation of the Bougainville Transitional mining Act.
They said it provides a framework making small scale mining by Bougainvillians legal and maintains the abolition of the Bougainville Copper Agreement, the SML created by it and all exploration licenses held by BCL since the 1960’s.
They added that the ‘Long Term’ also deals with many things that are not covered by the Transitional Act explaining that these new things were not covered in the Transitional Act because it was a temporary act.
The two pointed out that the ABG moved quickly to develop an interim mining law because it was worried about back door deals being made by unscrupulous outsiders and it also faced possible action of the National Government taking majority ownership of BCL.
They stated that the ABG is now satisfied that we have achieved what we wanted with the transitional Act and they are now very pleased to be able to move on to work hard to have a much more detailed, comprehensive and best practice law that meets Bougainville’s needs.
The ABG aims to finalize and pass the new mining Act late this year or early next year after public awareness and consultations have been made about the draft ‘Long Term’ Act which the ABG is committed to doing.

Sir Peter Barter joins Panguna planning process

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The Joint Panguna Negotiation Committee (JPNCC) has been boosted by the support of eminent businessman and former senior political figure Sir Peter Barter.

Sir Peter has been appointed as the Independent Chair of the Multi Party Trust Fund that administers the funding for JPNCC projects which include social, economic and environmental studies relating to the possible re-opening of the Panguna mine.

After an eight-year absence, Sir Peter was warmly welcomed back to Bougainville by a greeting party including a traditional dance troupe from Takuu Atoll.

“One of the reasons I have chosen to be here today is to see whether or not we can move forward and create an economy, which is needed to make this province truly autonomous,” Sir Peter Barter told the audience at Buka Airport.

“We have no autonomy without an economy.”

In his 15 years as a Member of Parliament, Sir Peter served as Minister for Bougainville Affairs and Minister for Inter-Government Relations.

He was integral in brokering the peace agreement, in 2007 relinquishing his seat in parliament to take on the role of Paramount Chief Masalahana (Peacemaker) in Bougainville.

Like the composition of the JPNCC, the board of the Multi Party Trust is drawn from the Autonomous Bougainville Government, the National Government of PNG, landowner representatives from the Panguna area and Bougainville Copper Limited.

The Multi Party Trust board meetings are held the day before the JPNCC convenes. The next meeting will be held on Thursday 2 October in Port Moresby

palm

Oil Palm Project

Picture :The Autonomous Bougainville Government President, Chief Dr John Momis had the chance to visit the Aberdi Oil Palm project on the Philippine Island of Mindanao and located on the outskirts of Cagayan de Oro City last Saturday Anthony Kaybing
As the time for Bougainville’s Referendum period forecloses Bougainville now has to seek ways to strengthen its capacity to meet the requirements of the Bougainville Peace Agreement.
With the slow negotiations on the correct calculation of the Restoration and Development Grant and the outstanding amount owed to the Autonomous Bougainville Government, the government has decided to look into possible foreign inward investment.
The Autonomous Bougainville Government President, Chief Dr John Momis had the chance to visit the Aberdi Oil Palm project on the Philippine Island of Mindanao and located on the outskirts of Cagayan de Oro City last Saturday.
The President was wholly impressed by the oil palm project which has built its own refinery to refine the palm’s crude oil and start producing products from food to cosmetics.
President Momis also had the chance to see firsthand how the processing of the palm oil takes place and refined with a visit to the projects laboratory was also included.
The President said with the palm oil industry offering a lucrative market he believes Bougainvilleans should look into this industry as an alternate cash crop.
“Bougainville can have a set up like the one at ABERDIN, while cutting off all middlemen and ensuring that we maximize the benefits for all Bougainvilleans,” the President said.
“We have a lot of arable land that we can use for extensive agricultural development, that can provide employment and revenue for the government and people alike,” he added.
With Bougainville’s own Inward Investment Act already in place, this will guarantee the ABG and the people of Bougainville are not marginalized in any awry business deals with possible foreign investors.
Bougainville’s own oil palm project at Torokina has gone into an indefinite hiatus and its future remains uncertain but the Government is still adamant it will get the project moving only and after it resolves all issues pertaining to its suspension.
The President’s visit to Aberdin was facilitated by A Brown Energy and Resources Development, Inc. (ABERDI), which is a subsidiary of A Brown Company, Inc. which is engaged in the real estate development business primarily in the Philippines.
The company operates through the Real Estate, Manufacturing/Trading, Hotel, Agriculture, Resource Development and Power segments.

BOUGAINVILLEANS ARE READY FOR REFERENDUM
BY JENNIFER NKUI

Despite the government’s attention being turned to mining, the people of Bougainville are ready for referendum.
This statement was made by Bougainville Revolutionary Army (BRA) general Ishmael Toroama last week.
He told New Dawn Fm in an interview that despite senior leaders coming out and saying that Bougainville is not ready for referendum, the people of Bougainville are ready for referendum.
He said what the government must do now is to push the people one step ahead to make their preparations for referendum.
He added that in preparations for referendum, we cannot be ready now but we need to be prepared and the people of Bougainville need to be prepared.
Mr. Ishmael challenged the members saying the people voted for you and you should not be sleeping.
He pointed out that collective effort is needed from all Bougainvilleans if we are to achieve referendum because the agreement binds us together.
He urged the government to not divert their attention to mining but must come together and work together in order for us to achieve referendum.

Bougainville News : Testing times for Bougainville’s mining future


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A lone copper dump truck that was completely burned out during the crisis at Panguna mine. Photo by Ian Booth.

Autonomous government needs to weigh the cost and benefits of extractive industries, writes MATTHEW ALLEN. 

The recent passage of new mining legislation on Bougainville comes at an especially troubling time for large-scale mining operations in the Western Pacific.

One of the first major laws to be enacted since the transfer of a suite of powers to the Autonomous Bougainville Government under the terms of the 2001 political settlement with Papua New Guinea, the transitional mining law is a significant step towards the possible recommencement of large-scale mining on the island.

However, an assessment of how some of the region’s largest mines have been travelling in recent times makes for sobering reading and points to the need for deep and careful reflection as Bougainville contemplates a mining future. The report card reads like this.

In April of this year the PNG government declared a state of emergency at the Porgera gold mine in the highlands province of Enga – operated by the Canadian miner Barrick Gold – and launched a three-month operation to stamp out what it describes as “illegal” mining. Over a hundred police and military personnel were deployed to the region and hundreds of houses allegedly belonging to illegal miners were razed by security forces.

Two weeks ago the Chinese-owned Ramu nickel mine, also in PNG, was reportedly attacked by “armed villagers” resulting in injuries to five Chinese workers, damage to equipment and a three-day halt to mine production.

Late last year the PNG government effectively expropriated the lucrative yet environmentally and socially problematic Ok Tedi mine in Western Province, a move that remains the subject of a court challenge in Singapore.

In neighbouring Solomon Islands, the country’s only mine, Gold Ridge on north Guadalcanal, has been closed since the site was flooded during heavy rains in April. The Australian operator returned staff to the site in June but has recently pulled out again citing a serious escalation in security incidents and the presence of large numbers of “illegal miners” in the mine lease area.

Further south in New Caledonia, the Vale nickel mine in the Southern Province was closed for several weeks earlier this year following a chemical spill that triggered a series of fatal clashes between riot police and Kanak youth.

And so the list goes on.

Unfortunately there is nothing particularly new about this association between large-scale mining and violence in Melanesia (and nor is it peculiar to the region – a 2009 United Nations study found that at least 40 per cent of intrastate conflicts globally are related to natural resources). Gold Ridge mine was a flash point during the so-called “ethnic tensions” that gripped Solomon Islands in the late 1990s, eventually closing down as a result of the violence.

And of course local grievances associated with Rio Tinto’s giant Panguna copper mine on Bougainville were a major contributor to the 10-year civil war in which thousands died. The mine has remained closed since the conflict, but Rio Tinto’s subsidiary, Bougainville Copper Limited (BCL), had, until the passage of the new legislation this month, retained its mining lease under PNG law.

Bougainville’s political leaders are in the unenviable position of having to weigh the costs and benefits of a mining future. At the forefront of their minds is the prospect of a referendum on full independence from PNG which, according to the autonomy arrangements, must take place between 2015 and 2020. A key question is whether an independent Bougainville can be economically viable without large-scale mining.

The avowed policy of the ABG’s current leadership is to actively explore the possibility of at least one large-scale mine, with the preferred candidate being the mothballed Panguna mine. The need for the ABG to be able to regulate Bougainville’s mining sector has been given added urgency by the increasing activities of foreign investors with questionable credentials and intentions, as well as by the recent boom in small-scale and artisanal mining activities.

There are aspects of the new mining law that are innovative and clearly informed by the problematic history of the Panguna mine and the legacy of the conflict. For example, the legislation vests the ownership of mineral resources in customary landowners, who can veto exploration but not mining once an exploration license has been granted. It also contains provisions for the development of the island’s poorer regions.

That said, the legislation has not been without its detractors – in large part reflecting the highly fragmented character of Bougainville’s politics – with the parliamentary debate and subsequent passage of the bill met with an outpouring of opposition across mainstream and social media.

Opponents claim that the new law gives privileged treatment to BCL, which loses its mining lease but automatically gains an exploration license and therefore the right to negotiate for a new mining lease. Other critics have long maintained that Bougainville should follow a path to development based on smallholder agriculture and artisanal mining rather than large-scale mining.

For its part BCL’s chairman Peter Taylor has described the new legislation as a “set-back” and Rio is to review its majority shareholding in BCL. Whatever the legal status of BCL’s claim, the history of mining on Bougainville and elsewhere in Melanesia shows us that no new mining is likely to take place without the agreement of landowners, and such agreements are open to frequent renegotiation.

One thing we can be certain of is that despite demonstrable economic recovery, Bougainville’s social and economic development indicators remain well below pre-conflict levels. There are pressing human development needs on Bougainville, which only heighten the urgency of the tough choices that must be made about its economic future.

Matthew Allen is a fellow at the State, Society and Governance in Melanesia program, ANU College of Asia and the Pacific. He is conducting research on mining and political change in Melanesia funded by the Australia Research Council.

Bougainville News :Bougainville Government purchases another vessel to service outer islands and coastline

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MV Rapois Chief

Anthony Kaybing

The Autonomous Bougainville Government has embarked on the purchase of another vessel to service Bougainville’s outer islands and it’s the coastline of the mainland and Buka Island.

Christened Rapois Chief, the vessel which is being refurbished in the Philippines will carry about 53 passengers with a crew of 7 and cargo and is expected to be completed in the coming months.

Much of the vessel’s interior and equipment has not been completed yet but more importantly, its two brand new engines have already been set with the propellers and the steering and gear compartment which are also new to be fitted soon.

The vessel also has a sturdy hull made of steel which are designed to withstand the rough Bougainvillea seas.

President of the Marala Vitas Central Terminal and Shipyards Corporation in Mania, Randolph Tiangco says once the engineering aspect of the ship is completed they will proceed with the interior design and painting of the vessel.

“The vessel is virtually a new one as we’re replacing almost every bit of it to with brand new parts and redesigning it to cater for the needs of the people of Bougainville,” Mr Tiangco said

Mr. Tiangco explained that work on the vessel might seem slow as his company is working meticulously to meet PNG’s National Maritime Safety Authority standards and to guarantee MV Rapois Chief its sea worthiness.

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A Bougainville delegation led by ABG President Chief Dr John Momis who was accompanied by Minister Assisting the President, Thomas Kereri and ABG Member for Haku James Beani was also on hand to inspect the vessel on Tuesday.

The delegation expressed their satisfaction at the workmanship of the Marala Corporation and was excited at the new development which will greatly service the people of the atolls and coastal Bougainville especially west coast Bougainville which are inaccessible by road

President Momis said the coastal people of Bougainville especially those in the west coast and the atolls will now have a safer means of travel and to move their goods especially cash crops.

The President said the MV Rapois Chief will be the second ABG owned vessel purchased by his government that will service Bougainville waters and parts of Papua New Guinea.

The first vessel, MV Chebu which is a brand new ship, is near completion and will set sail for Bougainville soon.

 

Ends////

 

 

Bougainville Mining News : Rio Tinto to review options Bougainville mining and BCL

RIO Tinto

Diversified giant Rio Tinto on Monday announced that it was “reviewing” its options over its 53.83% shareholding in embattled Bougainville Copper.

Bougainville’s Parliament last week passed a new Mining Act, which devolved power to regulate the mining industry from the government of Papua New Guinea to Bougainville’s autonomous government.

The new Mining Act resulted in Bougainville Copper’s mining licences being revoked and replaced with exploration licences. The exploration licences would allow Bougainville Copper to apply for a new mining lease, subject to the outcome of negotiations with the Bougainville Mineral Resource Forum.

“In light of recent developments in Papua New Guinea, including the new mining legislation passed earlier this month by the autonomous Bougainville government, Rio Tinto has decided now is an appropriate time to review all options for its 53.83% stake in Bougainville Copper,” the miner said on Monday.

Bougainville Copper has confirmed Rio’s decision, with chairperson Peter Taylor saying that the company’s remaining shareholders would be kept informed of any decisions.

Bougainville News : Bougainville Government invests in new shipping service

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The shipping woes of the people in the New Guinea Islands will soon be at an end following the official handover of MV Chebu on Sunday to the Bougainville Government.

MV Chebu is part of the newly created Chebu Shipping Company, a joint venture between the Autonomous Bougainville Government and Hakau Investments Limited, a subsidiary of businesses owned by local Businessman, Sir Henry Chow.

ABG President Chief Dr John Momis has described the new ship as the biggest impact project undertaken by the ABG to date following the Bougainville Crises.

“This ship is something all Bougainvilleans can be proud of as it shows our willingness to progress and reconstruct Bougainville,” President Momis said.

“I would also like to thank all those responsible for making the ship a reality especially the ABG official, Hakau investment and the Shunhai Ship Building Company for building the vessel,” the President said.

After viewing the vessel the President and Sir Henry were mutually happy with its completion and its specifications as it suits the maritime needs of the people

The President also revealed that after consulting Sir Henry they have decided to purchase another vessel for the Chebu Shipping Company in the near future.

The vessel has been built to specifications suitable for Papua New Guinea and will carry at 370 passengers including the crew and offers the latest in maritime technology that will guarantee safe passage for those wishing to travel the route.

The K15 million vessel has also been designed to meet National Maritime Safety Authority regulations such as proper safety equipment for each passengers and creature comforts including flat screen televisions in the main seating area and cabins and life jackets for every passenger and crew.

MV Chebu will be travelling the New Guinea Islands route from Buka, Rabaul, Kimber and Lae, a very lucrative route that has not been serviced since the tragic Rabaul Queen.

The joint venture company involved with the ABG in the Chebu Shipping Company, Hakau Investments limited has expressed its satisfaction at the completion of MV Chebu.

PNG entrepreneur Sir Henry Chow who owns Hakau Investments has expressed his gratitude to the Shunhai Ship Building Company for its workmanship for the last 18 months.

Sir Henry explained that the project is a joint venture between the ABG and the Chow family who have an immense experience in providing maritime services in Papua New Guinea as they own Coastal Shipping amongst their properties.

Sir Henry said he had accepted an invitation ABG President Chief Dr John Momis’ proposal to enter into a joint venture with the ABG to build a ship to service Bougainville and the New Guinea Islands.

He said Hakau Investments had done the initial design for the ship which was then given to a Singaporean firm to add the final touches to its design which has been used to complete the vessel.

Despite the vessel’s completion there have been minor technical and bureaucratic details that have to be sorted out before the vessel is set to sail for Papua New Guinea waters.

Sir Henry has given his assurance that the MV Chebu will be able to sail to PNG in the coming weeks once the technical issues have been resolved.

“Bougainville at this time desperately needs the services of a reliable ferry service one which the Chebu Shipping Company will graciously meet,” Sir Henry said.

“We are very confident this ship will provide a good service to the people of Bougainville and Papua New Guinea,” the Knight remarked.

The commitment by Sir Henry to go into business with the ABG came after the tragic loss of 300 lives, most of whom were Bougainvilleans, aboard the ill-fated MV Rabaul Queen.

Sir Henry was one of the first respondents to the needs of the survivors, providing support in cash and kind and also helped the ABG look after Bougainvilleans involved in the shipping mishap two years ago.

Sir Henry Chow was knighted by the Queen of England for his philanthropy to the people of Papua New Guinea over the years.

 

 

Bougainville News: Bougainville government legal advisor responds to critics

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BY JENNIFER NKUI

The legal advisor to the Autonomous Bougainville Government Anthony Reagan explained clearly to the ABG members of the House of Representatives yesterday that he is a lawyer by profession and is working as a legal advisor for Bougainville.

Speaking during the one day workshop of the ABG members on the new mining law in Buka, he said he is not an agent for Bougainville Copper Limited (BCL) as claimed by Philip Miriori through an article in The National newspaper.

He added that he has never worked for a mining company and has never received any money from any one.

Mr. Reagan said he only gives advice and he does not tell the ABG or the president and his ministers what to do or what to include in the laws.

He explained further that the new mining law came about from lots of work from lots of officials after much consultations and field work.

He then pointed out that laws are interpreted differently from normal sentences and therefore lawyers alone can interpret laws properly and accordingly but not anyone on the streets.

He said he is in Bougainville as Bougainville’s legal advisor and not as an agent for Australia or BCL.

Bougainville Government strips Rio Tinto subsidiary BCL of all exploration and mining licences

Rio Tinto subsidiary Bougainville Copper has been stripped of all its exploration and mining licences by the Bougainville Government.

The company’s Panguna mine was once one of the biggest in the world but it was also the spark that lit a decade-long civil war in the 1990s in which 20,000 people died.

Bougainville’s parliament initiated the move when it passed a new Mining Act on Friday.

The legislation devolves power to regulate mining from the Papua New Guinea government to Bougainville’s Autonomous Government but at the same time it strips Bougainville Copper Ltd (BCL) of its seven exploration licences and its special mining lease over Panguna.

Although the company retains first right of refusal on negotiations to operate the mine, the legislation will put the Bougainville Government in a stronger negotiating position.

“We have invited them to come and negotiate with us and if they don’t meet our mutually acceptable terms then they are welcome to go,” Bougainville President John Momis told Radio Australia’s Pacific Beat.

John Momis

“That is the only thing they have; first right of refusal.”

President Momis says the decision to cancel the licences came after wide-ranging consultations with the community on Bougainville.

“If we didn’t [cancel the licences], the landowners and the ex-combatants wouldn’t have allowed BCL to come back,” President Momis said.

Some ex-combatants and grassroots groups are worried by the legislation.

“This mining Bill will likely lay the foundations for another Bougainville crisis,” the Panguna Veteran’s Association said in a statement shortly before the Act was passed.

“Rio Tinto/BCL owned and controlled our minerals before and it led to the war.

“Under this Bill, Rio Tinto/BCL owns and will control our minerals – why would the result be any different this time?”

The chairman of the Me’ekamui Government of Unity, one of the groups descended from those started by civil war leader Francis Ona, is also concerned.

“This is a dangerous and destabilizing move and is not acceptable to the Me’ekamui,” Philip Miriori said.

President Momis says the critics who believe the new legislation leaves too much power in the hands of Rio Tinto and Bougainville Copper have been given the inaccurate information.

I think [the critics] are being misled deliberately by outsiders who have a vested interest

John Momis, president of the Autonomous Bougainville Government

“The critics are totally wrong – we have stripped Bougainville Copper of all powers,” he said.

“I think [the critics] are being misled deliberately by outsiders who have a vested interest.”

Some landowners groups have signed agreements with small unregulated mining companies.

Bougainville is due to hold a referendum on independence between 2015 and 2020.

Landowners and other groups that support mining see it as one means to obtain the economic self-reliance needed to have a real choice in the referendum.

Earlier this year, Mr Momis told the Australia Papua New Guinea Business Forum, he was not assuming that the Rio Tinto-owned copper mine on Bougainville would re-open or that Rio Tinto or Bougainville copper would be the operator.

However, now Mr Momis says extensive consultations have shown that landowners prefer to deal with BCL rather than a new potential operator.

“They talk of preferring the devil they know and not a new devil,” he said.

Bougainville News: Japan Ambassador presents to Bougainville historical site

Japanese Presentation

Anthony Kaybing

The Ambassador of Japan to Papua New Guinea, Hiroharu Iwasaki, presented to the people of the local surrounding area of the historical Yamamoto crash site in Buin South Bougainville equipment for its up keep.

The equipment, 5 chainsaws and 5 slashers were received by Autonomous Bougainville Government President Chief Dr John Momis at a dinner hosted by Ambassador Iwasaki on Tuesday (120814).

The equipment are gifts made possible by the Yamamoto Association based in Nagakoa in Japan following a request by the locals around the Yamamoto Crash Site through President Momis.

The President thanked Ambassador Iwasaki on behalf of the people of Bougainville while extending his gratitude also to the Yamamoto Association.

President Momis says this act of kindness shows how strong the historical bonds between the people of Japan and Bougainville are.

The President said the commitment by the Japanese Government and its people to Bougainville has been positive through its continuous support of Bougainville’s development.

Ambassador Iwasaki, whose term in PNG ends next week, also commented on the historical bond shared by the people of Japan and Bougainville.

The Ambassador said the people and Government of Japan will continue to work closely with the people of Bougainville through mutual cooperation and strengthen its ties.

The Yamamoto Crash Site in Buin, South Bougainville is where Japanese Marshal Admiral and the commander-in-chief of the Combined Imperial Fleet during World War II, Isoroku Yamamoto was shot down by allied forces in 18th April, 1943.

Admiral Yamamoto was the Commander-in-chief of the Japanese Imperial Navy during the decisive early years of the Pacific War and so was responsible for major battles such as Pearl Harbor and Midway.

He died when American code breakers identified his flight plans and his plane was shot down. His death was a major blow to Japanese military morale during World War II.

Bougainville Investment News: Update Nevis Announces Investment in Bougainville Development, LLC

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PRESS RELEASE : Nevis Announces Investment in Bougainville Development, LLC
Jul 21, 2014
OTC Disclosure & News Service Lake Kiowa, TX –

Nevis Capital Corporation (OTC: OCEE), is pleased to announce that they have signed a final agreement with Bougainville Development, LLC, a Mississippi Limited Liability Company, to acquire a 50% ownership of Bougainville Development in an all-stock transaction consisting of Nevis common stock.

The principal asset of Bougainville is a wholly owned subsidiary, Tall J(PNG) Ltd. of Papua, New Guinea, that has the contractual rights with the Papua Government to harvest the timber and to explore and develop the underlying minerals on 255,000 acres in Section 1645. Bougainville has a current investment in excess of $ 4,000,000 USD in this project.
Mr. Stephen Strauss, BD Director, estimates that production should commence within 12-15 months for delivery of finished materials to Asian markets. Surveys from ITTO estimate that this tract contains approximately 2.5 million cubic meters of timber valued at $ 1.3 Billion at current prices, generating estimated revenues of $ 37 Million annually over a 35 year production and reforestation cycle.
The Papua Government has endorsed the economic growth and development of their natural resources. Exxon Mobil has recently invested $ 19 Billion in Papua, NG, building one of the largest Liquid Natural Gas (LNG) projects in the world which began shipments in May with anticipated annual revenues of $ 7.2 billion.
Nevis Capital expects the operational profits from this investment, the previously announced US producing oil and gas investment and expansions thereof, the Macau Live Online Gaming investment, and initiatives to acquire interests in profitable Medical Marijuana ancillary product producers to rapidly increase shareholder value for this development stage holding company.

New Dawn report June 2014

President of Bougainville, Chief John L. Momis, today challenged “Me’ekamui Government’s” Philip Miriori to be honest about Bougainville mining issues. He was responding to a statement saying discussions about mining can happen only after the referendum on independence, and calling for Australian advisers to “go home”.

President Momis said:

“It’s amusing to see Mr. Miriori say mining can happen only after the referendum. For it’s widely known in Bougainville just how deeply involved Miriori is already involved in mining. It was he who worked closely with the Americans involved in Tall J Foundation Ltd. That company tried to do industrial mining of gold on the tailings on the Jaba River. But the people chased them away. Then a Chinese investor in Tall J. Tried to get his lost money back by bringing in Chinese to gather and sell scrap metal from Panguna. Then there is the Australian, Ian Renzie Duncan, at different times involved with Australian mining companies Zeus Resources and Trnaspacific Ventures. It was he who wrote Mr. Miriori’s speech delivered when Prime Minister O’Neill visited Panguna. It’s widely talked about in central Bougainville that Miriori is investing with Mr. Duncan, and that Duncan is taking alluvial gold supplied by Miriori.

“These are just a few of the mining interests that Mr. Miriori is involved in. It’s these and other mining interests that have take him off so regularly to meetings in Cairns, Brisbane, Perth, Singapore, and other business tourist destinations. Everyone around Panguna knows one thing for sure: no other Me’ekamui President has done more foreign travel than Miriori!

“But with all his deep involvement in mining already, how can he talk about decisions on mining waiting until after the referendum? I challenge him to be honest about his long history of mining interests.

“I also challenge him to be equally honest about foreign advisers. He says Australian funded advisers are not welcome. But these advisers have all been requested by the ABG to help us fill in gaps and weaknesses in the Administration. Although Australian funded, many are not Australian. They include Bougainvilleans. Until recently our legislative drafting adviser was from Vanuatu. Our Policy Adviser was from Bermuda – all paid for By Australia.

“For the ABG, the two most important things about our advisers are these. First, we only have them when we have a gap we cannot fill with a Bougainvillean. Second, they must follow the directions of the Bougainville Government. I am absolutely confident that they do  that. They do not control the ABG. They are not here to make money for foreign companies.

“I challenge Mr. Miriori to tell us about his foreign advisers, and what they are doing to make money for foreign interests. They included two Americans with the Tall J Foundation, Stewart Sytner and Thomas Megas. There are documents freely available on the Internet that show they claim that Mr. Miriori sold them mining rights in areas to the north of the Panguna Special Mining Lease. I challenge him to tell us is what Sytner and Megas claim is true.

What about the other investors in Tall J? What advice did they give to Miriori? What about the Tall J investor who brought in the Chinese scrap metal dealers? What advice did he give? What about the advice that Mr. Ian Renzie Duncan gives?

“Mr. Miriori is not being honest about the future of mining. His hands are not clean in relation to mining.

“Mr. Miriori is not being honest about foreign advisers. Again his hands are not clean.

“I challenge him to be honest on these matters. I challenge him to enter these debates only when he has clean hands.

Tall J, O’orang & MTRL alluvial mining in the Tumpusiong Valley

Leonard Fong Roka Feb 2013

As way back as 2008, an Edwin Moses from Sireronsi village and an Amos Ove from Kongara were in an underground contact with Americans, Steve Strauss and Mike Holbrooke. Their dialogue was an interest to tap into the lucrative alluvial gold panning in Central Bougainville.

Jaba Industries company logo

Then they connected the Americans and their company Tall J whom were said to be specialized in small scale mining to the so called Meekamui Government of Panguna led by Philip Miriori (president) and Philip Takaung (vice president) a pair that, when talking about BCL to the media had being so anti-mining.

In early 2009, Edwin Moses, Amos Ove and Philip Takaung formed their own company under the blessing of the Meekamui Government which they named O’orang with all executives from their respective villages and Amos Ove as the manager and Edwin Moses as director to start formal negotiations with the Americans.

Tumpusiong Valley sedimentattion that hosts the gold

After O’orang was established, Tall J money began entering Bougainville. O’orang was assigned to lay out the ground work for possible mining operations in Panguna, especially the Tumpusiong Valley where Amos Ove was married. The valley had tones of gold washed from the Panguna mine’s long operations and today it is one of the main alluvial gold attractions in Kieta. The company’s attempts to lure the targeted people were often met with opposition but the report that went to America was of positive progress.

So back in America, there was excitement to have established a link on one of Pacific’s richest islands and their landowners, from debriefs O’orang passed on from Bougainville. Thus money flowed in and O’orang members earned American money and drove around in new vehicles.

In mid-2009, the Americans and O’orang met in Honiara to finalize a go-ahead for a joint venture on establishing an alluvial gold mining operation in Panguna. A week later, a team of nine Americans arrived in Panguna with a Komatsu front-hand loader and three other equipment for sampling and other preparations under the leadership of Steve Strauss to learn that nothing had being done out of their money.

Jaba Industries operations site in the Tumpusiong Valley

Spending months in Panguna, with Philip Takaung also renting rooms to them, they tried to sort things out themselves. Half of the Americans returned seeing that their money was wasted on liars that the people hardly respected. Even Amos Ove was making his own money by having the mechanical loader on hire after they were chased out of the Tumpusiong Valley in their first attempt. But the other half stayed on under the leadership of Steve Strauss and Mike Holbrooke.

With the Americans around them and Amos Ove gone due to illness, Philip Takaung and Edwin Moses began to fast track negotiations with various people around Kieta. They visited the Eivo area; went into certain parts of Kokoda; frisked the whole Panguna valley for partners, especially the Tumpusiong Valley. They entered Kupe, where an Australian company once had a gold mining operation in the 1930s, three times and on the fourth visit, angry Kupe people chased them.

By Christmas 2009, all Americans left accept Strauss who was so concerned in finding ways to recover the money they had spent. By early 2010, the Americans had spent some K1.7 million through O’orang in order to secure alluvial gold mining operations with the people.

Mr. Michael Tona, MTRL deputy chairman

As the year was fast winding down Strauss saw no hope and was packing to leave Bougainville when a Michael Dendai and Michael Tona who were not involve in Tall J first attempts in the Tumpusiong Valley walked into him in Panguna with a claim that they and their families owned much of the west Tumpusiong Valley tailings area.

Strauss was relieved and forged an agreement with the pair and also donated an open bag land cruiser to serve the Tumpusiong communities that was controlled by Michael Dendai since.

In a series of meetings held at Panguna within a period of two months, a new company, Middle Tailings Resources Limited (MTRL) led by Michael Dendai and Michael Tona was born. O’orang also fought hard not to be left out in this new relationship and was accepted and Strauss again fought to secure more off shore funding for this new operation.

Closer look at the camp in the middle of the BCL created barren land

This time funding was secured from a Chinese partner and more Americans began to arrive to pave the way forward for the Tumpusiong project. And seeing the Chinese money on their hands Dendai and Tona carelessly fast tracked the go-ahead of the project without engaging the majority of the west Tumpusiong community members in decision making. But still the project was steaming on with the happy MTRL gang.

So the joint venture named as the Jaba Industries was consisting of O’orang owning 33.33% shares; MTRL owning another 33.33% and Tall J holding the last 33.33% of shares. In all three joint venture partners, the unidentified Chinese financier was catered for; that is, the Chinese were shareholders in all three companies. At the same time, Tall J had certain percentage of shares in the 33.33% shares owned by O’orang in Jaba Industries concerning the K1.7 million Tall J money O’orang corrupted.

All things sorted, equipment and plants, funded by the Chinese, began arriving one at a time for the whole of 2011 and half of 2012; plants were kept at Birempa on the Morgan-Panguna mine access road near Edwin Moses’ home. Plants include dump trucks, an excavator, a front-hand loader, a number of open bag land cruisers and gold processing equipment. And during the Christmas break of 2012, establishment began at Toku village in the western section of the Tumpusiong Valley.

With heavy sedimentation intact, the project could last

Alongside the development conflict also surfaced. The locals were brawling with the MTRL executives over decision making processes as landowners witnessing the fact that Michael Dendai was running the MTRL as his private business because on paper, collective decision making was the way and that majority beneficiaries should have being the community.

Also despite the fact that the men involved with the creation of MTRL were the close relatives of current ABG mining mister, Michael Oni, the parliamentarian have being said to knew nothing of this development. So people also public condemned MTRL and Jaba Industries as illegal businesses.

The main village of Toku further boiled with strikes. In a launching and dedication ceremony held in December 2012 just before Christmas at the mining site, the other half of the Toku villagers did not attend nor did they ate the food that was brought to them.

Furthermore, the locals were angered by the project when, all executive positions in the joint venture was held by the O’orang who were not even landowners in the Panguna mine site or the Tumpusiong Valley but were from the inaccessible by car hinterland villages of Pangka and Mosinau to the south-east of the Panguna mine who now squat in the remains of the Panguna township causing a lot of disharmony with the people owning the Panguna mine and town areas like the Moroni people and even the Panguna District administration.

Tumpusiong Valley

Most of the Tumpusiong men were employed as security guards earning a K75 per fortnight. Plant operators and so on were the O’orang employees. And point of argument was, to the former BRA fighters, Mr. Dendai was not at home during the conflict and now was walking over them thus he was not accepted to be a sole decision maker in this project.

Somewhere in late 2012, the Chinese partner under the cover of Jaba Industries announced that it shall be releasing a K300 000 community development packet and two vehicles for the Tumpusiong Valley around the 2012 Christmas period. The people waited as they watched the test-run of the operations that produced a positive result in a week’s operation in January 2013 that was shipped overseas as a sample.

But to their dissatisfaction in the mid-January of 2013, a new accusation surfaced that the awaited K300 000 development packet was already deposited into Michael Dendai’s bank account in 2012. Without any hesitation, the villagers torched the gold processing equipment in broad day light.

After this, all Tumpusiong men working as security guards at the mining site walked off, with a demand to Jaba Industries to solve the issue or pack up and leave.

Posted by Leonard Fong Roka at 18:10

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Bougainville News : Information will be vital in Bougainville mine negotiations

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An increased flow of information will be provided to Panguna landowners and other Bougainvilleans as they give consideration to a re-opening of the former copper mine, says the co-chair of the joint Panguna Negotiations Coordination Committee, Raymond Masono.

He said this is part of a strategy to ensure that Bougainvilleans are at the centre of decisions about the mine’s future.

“The exclusion of Bougainvilleans from decisions about development of the Panguna copper mine was a key cause of the Bougainville conflict.

“This is why customary landowners, the Autonomous Bougainville Government,  the National Government and Bougainville Copper Ltd (BCL) are adopting a very different approach in considering whether the mine should be reopened,” said  Mr Masono.

“At the heart of this approach is a commitment by all parties that decisions on the future of the mine will rest with Bougainville.”

Prime Minister O’Neill and the Chairman of BCL, Peter Taylor, agreed with Bougainville President John Momis that strong support from the ABG and affected landowners is essential if the mine is to reopen.

“This is very different to what happened in 1969, when the key decisions were made by the Australian Colonial Administration and the mining company, which was then CRA Ltd,” Mr Masono said.

The transfer of mining powers from the National Government to the ABG and the development of Bougainville’s own mining legislation, are critical in ensuring that Bougainville is in control.

The other big change is that all of the major stakeholders will be closely involved in negotiations about the future of the mine, and will have access to the information they need to deal with the legacies of earlier mining and plan for the future.

“The JPNCC has been created to make sure that this happens,” Mr Masono said.

The JPNCC is a partnership between Panguna-affected landowners, the ABG, the National Government and BCL.

A key role of the JPNCC is to undertake baseline studies designed to establish the state of the environment, and existing social conditions, in areas surrounding the Panguna mine.

These studies, which will be conducted over the next 12 to 18 months, are essential to deal with the impacts of earlier mining and to inform decisions about whether the mine should be reopened.

“If people are to have trust in the findings of baseline studies they must be conducted independently, transparently, and to the highest technical standards.

“The JPNCC will ensure that this happens,” he said.

He said much remains to be done to improve communication of information about the baseline studies and other preparations to Bougainvilleans.

“An ABG survey of communication channels, both formal media and informal transfer of information, confirmed that people outside Buka have very limited access to mainstream media, including radio, television and newspapers,” he said.

“In response to these findings the JPNCC is developing a communication strategy focusing on face-to-face communication and delivery of print materials that are designed specifically to suit Bougainville conditions”.

New Bougainville Party launches Tonsu branch

THE people of Tonsu constituency in the west coast area of Buka Island recently witnessed the launching of the New Bougainville Party’s Tonsu branch.

The ceremony which was held at Petats Island last Wednesday was attended by party leader and President of the Autonomous Bougainville Government, John Momis and his cabinet ministers, party president Linus Sahoto and other senior members of the party.

The event marks Tonsu as the first constituency in Bougainville to have set up its branch, thus showing that many people there greatly admire and support the current leadership of President Momis.

On top of that, Tonsu will shortly be having permanent executives that will be manning the party’s interest. During the 2010 ABG Elections, NBP was only operating on an adhoc basis in the Tonsu area.

Mr Momis and his delegation included ministers Joel Banam (Public Administration and member for Tonsu), Luke Karaston (Works), Wilfred Komba (Commerce), Rose Pihei (Culture and Tourism), Newton Kauva and others.