Bougainville Mining News: BCL chairman addresses AGM (Download full transcript)

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“Let me assure you that the vision to return to active exploration and profitable, sustainable mining remains, with the active support of many local stakeholders.

The Board and Management of Bougainville Copper Ltd are well positioned to recognise the opportunities inherent in recent challenges, and to maintain progress in a new year.

I believe the economic self-sufficiency of Bougainville needs the successful development of Panguna “

The following is a transcript of the address given by BCL Chairman Peter Taylor to the Annual General Meeting in Port Moresby on Wednesday 29 April 2015. A PDF of the transcript can be downloaded here.

The Annual General Meeting gives me an opportunity, as chairman, to make a statement concerning the up-to-date affairs of the company. Copies of this statement will be distributed as you leave today, and with your permission, I would now like to present it.

Mining Legislation

The most significant event to impact the company in 2014 was the passing of new mining legislation by the Autonomous Bougainville Government, which creates uncertainty regarding Bougainville Copper’s rights to mining and exploration licences. The Bougainville Mining Act 2015 was passed on April 1, substantially mirrors the clauses of the Interim Mining Act, which has reclassed the existing Special Mining Lease as an Exploration Licence. There remains uncertainty over the seven (7) leases for mining purposes.

The Company made applications for new licenses and to affirm rights which appear to have been impacted by the interim ABG mining legislation. These applications have been declined. The final Bougainville Mining Act 2015 prevents the Mining Registrar from accepting or registering applications for tenements before October 1, 2015.

The company is taking some comfort from correspondence and continued dialogue with the ABG and President Momis where he acknowledges that the company is a holder of a Special Mining Lease prior to the Act coming into force. The Act substitutes the Special Mining Lease (SML) with an Exploration Licence. The Company will seek formal granting of the exploration licence and exclusive access to the SML area.

Given the potential impact of the new legislation, the Board has decided to take a full impairment of the value of the mine assets, and to restrict the flow of funds into some of BCL’s work programs. The impairment dramatically decreased the value of the company fixed assets and has resulted in a corresponding impairment expense in the Statement of Comprehensive Income. I will discuss the impact of the impairment shortly when I summarise the 2014 results.

Company representatives continue to engage with the National Government and the Autonomous Bougainville Government seeking clarification of the company’s rights, and at the same time to explore legal options, as well as taking steps to protect BCL’s priority position should re-commencement of mining at Panguna be viable and approved.

The company’s major shareholder Rio Tinto announced in August 2014 “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 per cent stake in Bougainville Copper Ltd”

The review is ongoing.

President John Momis has emphasised that the new mining legislation was needed to address unregulated mining activity on Bougainville, and was not aimed at discouraging BCL. President Momis has supported redevelopment of the Panguna mine, subject to community support.

Given the uncertainty the company has minimised its Bougainville work programs.

Financial Results

The results for the year ended December 31, 2014 as reported in the Annual Report, record an operating loss of K9.1 million and an impairment charge of K166.6 million which equates to an overall loss of K175.7 million. This compares with the profit of K6.8 million in the previous year. The impairment charge reflects the diminishing rights of the company to the mine assets and resources with the directors acting prudently in impairing the mining assets completely. We continue to seek advice regarding all our options.

The value of the mining assets in 2013 was K197.9 million and after the asset revaluation reserve of K31.3 was reversed the net impact of the impairment recorded in the statement of comprehensive income was 166.6 million.

Revenue from Interest and Dividends (K4.9m) was slightly lower than budget (K5.1m).

Operational expenditure overall (K14.1m) was lower than budget (K15.9), reflecting the scaling back of work programs.

The company will not pay a dividend.

The company has sufficient funds to cover its recurrent expenditure under the current three year plan and is debt free.

Taxation

I am pleased to report to the shareholders that the company has negotiated a settlement with the Commissioner of the Internal Revenue Commission (IRC) in PNG. A scheduled second mediation occurred on 2nd April 2015. I am able to report the court has confirmed the company will receive back K39.7 million from the funds held on term deposit with the Registrar of the High Court. This concludes this long outstanding matter.

There was a total of K70.6 million reported in the 2014 Financial Statements as receivable. The IRC was paid K13.0 million in addition to K4.4 million of interest withholding tax. K14.0 million was agreed to be paid to the IRC in settlement from the K53.2 million, held on IBD for the national court, which leaves the Company with around K40 million.

Financial Assets and Investment strategy

At the end of 2014 Bougainville Copper’s liquid assets were K4.7 million in cash and K102 million in Australian equities. The company’ financial position is linked to the performance of the Australian equities market, which is in a positive phase.

In 2014 Bougainville Copper’s Australian Equities Portfolio, performed broadly in line with the Australian Stock Market.

It is intended to continue with the current investment strategy, for as long as the investment committee deems this to be the best option, or until such time as equities need to be sold to fund further work programs.

The company’s cash position is enhanced as a result of the conclusion of the taxation dispute.

Governance

Bougainville Copper has governance reporting obligations to the Australian Securities Exchange (ASX). A statement on the company’s compliance with the ASX Corporate Governance Principles and Recommendations is contained within the annual report. In addition, the company has adopted policies that seek to comply with Rio Tinto’s comprehensive range of policies including safety, environment, financial management and other governance practices. The company has chosen to early adopt the latest edition of the ASX principles, for the 2014 Financial Statements, one year before the mandatory adoption date.

Safety and Risk Management

Bougainville Copper is particularly safety conscious and has in place a comprehensive set of safety standards to ensure that it provides a safe working environment and that its employees and contractors comply with best practice safety procedures. The company complies with the requirements of the Rio Tinto safety policy.

The management of Bougainville Copper undertakes regular risk reviews.

Bougainville Copper Foundation

Bougainville Copper has continued to support the work of the Bougainville Copper Foundation. This is an independent, not-for-profit company that has been funded by Bougainville Copper since its inception.

In 2014, as in previous years, the Foundation had more than 100 Bougainville students on scholarships. Many are continuing to be supported in 2015.

The Foundation also undertakes special project on a needs basis with the emphasis placed on education, peace and good governance.

The Foundation is proud of its achievements and those of its former scholars who are contributing to the development of Bougainville.

The Foundation continues to review its objectives and future direction. As mentioned, the Foundation is an independent body, and it is hoped that its range of activities will not be materially reduced by the factors that are now constraining some of BCL’s social and work programs.

I will now report on some other current events which have a bearing on the company’s prospects and its progress towards the vision of reopening the mine.

Work Programs

In view of recent actions of the Bougainville legislature, funding to progress all studies and welfare programs will be limited until uncertainties of tenure and the legislative regime are clarified.

During the period, limited work continued to refine the 2013 Order of Magnitude Study, which is an exercise aimed at giving the company guidance as to the most appropriate and cost effective way to re-develop the Panguna resource. It is one of the Board’s major tools in evaluating options going forward.

The Order of Magnitude Study is based on many assumptions including commodity prices, market demand, investor risk, opportunity costs, security of tenure and others. In brief it describes a new mine at Panguna processing between 60 million and 90 million tonnes of ore per annum, over a mine life of 24 years, with an estimated capital cost of 5.2 billion US dollars, as estimated in 2013.Further, more detailed studies, such as a pre-feasibility study and a feasibility study are required to confidently determine the potential economic viability of re-opening the mine. Only upon completion of those studies will the Board be sufficiently informed to take a decision whether or not to proceed with financing and commencement of construction.

The time-line to first production could be between five and seven years from the date of approval and financing.

Many of the assumptions, including the size of the resource, the life of the mine, and the start-up cost, may vary significantly when the company gains access to the former mine site and undertakes further work.

Several other studies were initiated by the company, in conjunction with the Bougainville Administration, aimed at providing a clearer picture of the environmental conditions, the needs of the population, training and employment readiness, as well as land ownership and social mapping. However the company is not in a position to commit to funding these studies until tenure is assured.

Bel Kol

Representatives of the customary landowners from the mine lease areas have requested that Bougainville Copper perform a cultural ceremony with them, Bel Kol.

The ceremony is aimed at restoring relationships between Bougainville Copper, landowners, the Autonomous Bougainville Government, ex-combatants and community leaders.

Significant progress was made towards Bel Kol by the end of 2014. A senior Bougainville Copper manager began regular travel and participated in discussions in Central Bougainville.

Bel Kol is now postponed until after the Bougainville elections. As a gesture of goodwill, the company will make commitments to support programs focused towards health and education initiatives.

The company has asked for open access to Panguna and the area covered by the original Special Mining Lease, assurances of safety, and an invitation to establish a presence in Arawa, as a base for field work, baseline studies and social mapping previously mentioned, and for the recruitment of local people to participate in drilling and other evaluation and de-risking programs

A training program has been jointly designed, to be supported by the company, to prepare members of the lost generation for work opportunities.

Joint Panguna Negotiations

The Joint Panguna Negotiation Coordination Committee (JPNCC) consisting of National Government and ABG representatives, together with landowner and company delegates, was active in 2014 in defining several baseline studies and preparing to implement them.

The JPNCC has established a Multi Trust Fund, to manage joint monies including aid, and to conduct the process of tendering and awarding the baseline studies, in order to vest the findings of studies with arms-length transparency, and credibility with all parties. The Trust Fund formally came into effect in November 2014.

Senior PNG statesman Sir Peter Barter accepted chairmanship of the Multi Trust Fund, and as a respected Bougainville peace-maker, reminded the people of his long held view that there can be no meaningful autonomy without a viable economy.

Throughout the year, company management maintained its own fruitful dialogue with a wide range of Bougainvillean interest groups, through regular meetings at Buka, Arawa and Kieta, with landowners, ex-combatants, women’s groups, ABG agencies, aid donors and other stakeholders.

Events on Bougainville

There have been a number of developments in Bougainville, including Prime Minister Peter O’Neill who visited Bougainville and Panguna in January 2014, and visited again in December 2014 to re-open the Aropa airport.

Australia’s Foreign Affairs Minister Julie Bishop visited the region.

Preparations for elections to the Parliament of the Autonomous Bougainville Region are gathering pace, polling scheduled for May 2015, with results known during June.

President John Momis is one of nine candidates seeking election.

There has been a re-structure of the Bougainville Public Service administration.

The relationship between President Momis, his government, and the Board and management of Bougainville Copper remains cordial.

The regulatory regime and the company’s position

The practical effect of the permanent mining legislation requires further clarification so that the long term mining regime for Bougainville is settled, allowing the company to factor these terms into its assessment of the viability of the potential mine redevelopment.

The next phase of study, a pre-feasibility study on reopening the mine, will be very expensive, and requires certainty of a workable mining regime and conditions prior to committing the study funds.

I wish to restate that even if further studies confirm that recommencement of mining is economically attractive, mining at Panguna cannot recommence unless all parties: the Landowners, the Autonomous Bougainville Government, the National Government of PNG, and BCL, are acting in close accord, now and into the future.

Funding and sovereign risk assurance for the project will require a united effort. Investors also need a fair and stable regulatory regime that gives them the confidence to commit to a project that will require billions of dollars of investment.

Conclusion

Let me assure you that the vision to return to active exploration and profitable, sustainable mining remains, with the active support of many local stakeholders.

The Board and Management of Bougainville Copper Ltd are well positioned to recognise the opportunities inherent in recent challenges, and to maintain progress in a new year.

I believe the economic self-sufficiency of Bougainville needs the successful development of Panguna.

The company faces the coming year with resolve and determination.

For your further information, I remind you that reports and commentaries of the company’s activities are regularly reported to the Australian Securities Exchange and associated media, and can also be accessed on our website.

Bougainville Mining News: Bougainville mine now in play, government says

PNG PM

“Secret dealings of this kind are completely unacceptable to the people of Bougainville, It would be unacceptable to the people of Bougainville for the national government to try to take control of Panguna. Such a move, would trigger demands for immediate independence “

“We cannot allow a new form of colonial dealings in Bougainville’s resources to occur.”

Bougainville President John Momis

The Bougainville Autonomous Government is convinced Bougainville Copper — which owns a mine containing copper and gold worth more than $50 billion, as well as a recently ­reconfirmed exploration licence — is now in play.

As reported in todays Australian Newspaper  By: Rowan Callick Asia Pacific Editor

Bougainville President John Momis last week called on Papua New Guinea’s Prime Minister Peter O’Neill and Rio Tinto to reveal any dealings over Rio’s 53.58 per cent shares in BCL.

“For over a year now, Mr O’Neill has expressed interest in the national government taking control of BCL,” Mr Momis said.

“He proposes that PNG operate the Panguna mine in Bougainville in the same way it operates the Ok Tedi mine,” which Mr O’Neill’s government took over in 2013.

The PNG government has hired Peter Graham, who led ExxonMobil’s successful construction of the country’s first liquefied natural gas project, to manage Ok Tedi mine and potentially to steer other state-owned mining assets.

The Bougainville mine, which was closed by conflict in 1989 and which would cost an estimated $6.5bn or more to reopen, is also owned 19.06 per cent by the PNG government, and 27.36 per cent by other shareholders.

Mr O’Neill confirmed that “we have had discussions with other shareholders of BCL on a range of issues including the reopening of the mine and the disposal of shares by existing shareholders, including Rio Tinto”.

But, he added, “There are no secret deals, and we are disappointed that President Momis is trying to use this issue at the time of the election” for a new Bougainville government that takes place at the end of next month.

“President Momis has been informed of whatever talks we have with other shareholders of BCL, only because the state is the second biggest shareholder,” Mr O’Neill said.

There would be no talks about reopening the mine, he said, “until landowners and the people of Bougainville are ready”.

It is understood the Momis government’s concern was aroused by information it had received that law firm Norton Rose Fulbright, which does a considerable amount of work for Rio internationally, had instructions to handle the sale of Rio’s shares, and had held discussions with agents in Port Moresby in relation to the deal. A Norton Rose Fulbright spokesman declined to comment when questioned by The Australian.

The BCL share price suddenly soared by 50 per cent a fortnight ago. The ASX issued a “speeding ticket”, asking the company to explain the leap. BCL said it couldn’t.

Mr Momis, whose government has recently passed new mining legislation that hands back control of all resources to landowners, said: “We cannot allow a new form of colonial dealings in Bougainville’s resources to occur.”

He said that last month he wrote to BCL, seeking advice from either it or Rio Tinto, about whether share transactions between Rio and PNG were under discussion or preparation.

“I received a brief reply from Rio, addressed to BCL but passed on to me, dated March 23. The letter simply stated that ‘Rio Tinto … is reviewing its options with respect to its stake in Bougainville Copper Ltd. This review is continuing’,” Mr Momis said.

“Secret dealings of this kind are completely unacceptable to the people of Bougainville,” he said. “It would be unacceptable to the people of Bougainville for the national government to try to take control of Panguna.” Such a move, he said, would trigger demands for immediate independence.

Peter Taylor, who has been chairman of BCL for 12 years, told The Australian “the Bougainville government seems to want the mine reopened, but we have to sit down … and see what’s doable”.

Bougainville Independence News : Chris Siriosi will the referendum be key focus for elections next month ?

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The outgoing Bougainville government has started laying the groundwork for a referendum to be held on possible independence from Papua New Guinea.

That vote has to occur by 2020 at the latest and will be the key focus for the new parliament to be elected next month.

To help meet the conditions laid down in the Bougainville Peace Agreement for the question to be put, the autonomous region’s (former) chief administrator, Chris Siriosi, is heading the Office of the Bougainville Referendum.

He explained the nature of his work to Don Wiseman Radio NZ

CHRIS SIRIOSI:  There are important preconditions for agreeing on the date for the referendum.  Firstly, there needs to be consultation on the issue of the weapons disposal or weapons in Bougainville and also there has to be a determination that the Bougainville government or the Autonomous Bougainville Government has been and is being conducted in accordance with internationally accepted standards for good governance.  So these are the details that are being worked on currently.

DON WISEMAN:  Who makes those assessments in terms of whether there are enough guns removed from the community and whether the level of governance is at the appropriate level?

CS:  These are issues that the two governments will need to consider and agree whether or not the weapons have been removed from the community in adequate numbers and the issue of good governance.  These are issues that the two governments will have to sort out between themselves but the details of enabling the governments to have a clear picture on this is not available so that is what we are working on now.  The ABG assessment is an office of the Bougainville referendum under my leadership as the Chief Executive.  Currently there are seven work streams which have been identified.  Most important of which is the consultations with the people of Bougainville, engagement of the people of Bougainville and Papua New Guinea.  Workstream number two is the weapons disposal assessment.  Workstream number three is the criteria enabling non-resident Bougainvilleans to vote.  Workstream number four is the assessment of good governance or level of good governance.  Workstream number five is the process for determining the question that will be put to the people of Bougainville during the referendum and workstream number six is to establish an independent administrative agency that will conduct the referendum, preferably under UN control.  Workstream number seven is to review the legal provisions that will be the basis for conducting the polling.  Those are basically the outstanding work that is required.

DW:  Clearly what it entails is a lot of work by people under you.  There’s a need for significant amount of capacity isn’t there?  Do you have enough staff, enough support, enough people with skills to be able to undertake that work?

CS:  Well to be honest with you on the ground here we simply don’t have the people that have experience in conducting referendum anywhere in the world and secondly we don’t have the calibre of people that will enable the details to be put together.  We have been fortunate to get support from the New Zealand government who in the last seven months made available an expert who has assisted the ABG and the national government in identifying the major workstreams that are now required to be undertaken.  New Zealander Mike Richardson is an ongoing engagement.  More professional and adequately experienced experts will need to be sourced from outside the country.

DW:  Before you get to that point with the referendum and as you say you have got all this work to do but the region has been trying to get rid of guns for eons hasn’t it?  Clearly it remains a problem so how are you going to get those last weapons or enough of what’s left to satisfy the requirements of Port Moresby?

CS:  That’s the basically a major sticking point.  What we don’t have at the moment is data on where the weapons are and whose possession are the weapons in and why are people holding onto weapons when they should be really doing away with those weapons before we can take measures to remove those weapons by whatever means the two governments agree on in consultation of course with the people of Bougainville and Papua New Guinea.

DW:  I think there is very clearly an expectation from Bougainvilleans that this vote is going to happen in this time frame as laid out by the Peace Agreement but from you’ve just told us, there could actually be a delay if Bougainville can’t satisfy Port Moresby requirements.

CS:  What the people have to understand, including the governments, is that the delay of the conduct of the referendum can only be delayed up until the last half of 2020.  Beyond June 2020 it cannot be delayed, it’s going to be held anyway.  But what we need to let the people of Bougainville understand is that any outcome of any referendum that is conducted without the conditions or those considerations will inevitably affect the final outcome.

Momis: Peace Agreement will be met

This was the statement given by Autonomous Bougainville Government (ABG) president, Dr John Momis.

Momis made the statement in reference to Bougainville’s referendum that must be held within the 5 year time period from 2015-2020.

The conditions of the BPA are good governance, fiscal self-reliance and weapons disposal.

“We must not fear, we must have faith in each other and ultimately of course we must have faith in God to give us the wisdom and strength to prevail.

“We have now reached a critical juncture on our journey to freedom where we stand at the threshold of a new socio-economic, political and spiritual order,” said Momis.

The president added that this new future means Bougainvilleans will want to be liberated from structural impediments, from institutional impediments and become agents of change and development.

“We know for a fact that the people of Bougainville for a long time have always seen themselves as a people set apart from the rest of PNG.

“Bougainvilleans definitely have a history, we have a history of rejecting outside imposition, a history of being proud of our heritage and a history of self-determination,” said Momis.

He said that elf-determination is not a dirty word for the people of Bougainville.

He said self-determination is the peoples’ claim that they must be the major stakeholders in deciding their fate and to be engaged in socio-economic, political and spiritual liberation.

“It is through unity and believing in one another shall we achieve our ultimate political future,” President Momis remarked.

– See more at: http://www.pngloop.com/2015/03/05/momis-peace-agreement-will-met/#sthash.bYMtzq2k.dpuf

Bougainville Election News : 173,000 enrolled to vote in Bougainville elections

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By Aloysius Laukai

The Bougainville Electoral Commissioner, GEORGE MANU today announced the completion of the Bougainville Common role in preparation of polling that will commence on May 11th, 2015.

The Commissioner made this announcement in one of his weekly programs on NEW DAWN FM.

He praised the 2015 COMMON ROLL stating that they managed to register additional TWENTY THOUSAND eligible voters in the final roll making the final number registered to ONE HUNDRED AND SEVENTY THREE THOUSAND VOTERS.

MANU also announced that his office has been busy running trainings for the Electoral officials to make sure they are fully equipped for this election.

The Bougainville Electoral Commissioner also acknowledged the UN Electoral advisors for organizing training for the scrutineers.

And he called on the candidates to make sure they send some of the scrutineers for these free trainings so that they can go back and train their other scrutineers.

He said these free trainings will be organized in each of the three regions of Central, South and North Bougainville.

BALLOT PAPERS ON PRINT

Meanwhile the Bougainville Electoral Commissioner, GEORGE MANU has also announced that Ballot Papers for this elections were printed in AUSTRALIA and will be arriving in Buka next week.

He said as soon as they are in, they will be distributed to the three regional Electoral offices of Arawa, Buin and Buka. MANU said that these regional offices have been established to see the smooth distribution of ballot papers to polling boots.

He said he will make sure there is no shortage of ballot papers at any one polling location this time.MANU said that election materials such as Ballot Boxes will be arriving this week for distribution to the three distributing centres.

He said that all is set for the conducting of the 2015 ABG General elections

SAD DAY FOR THE PEOPLE OF KONNOU

The biggest constituency on Bougainville, KONNOU which is in the East coast of South Bougainville will again miss out in voting as they are not free to cast their votes in the 2015 ABG General elections.

Reports reaching New Dawn FM says that parts of Konnou that is from TABAGO Mission up to the mountain ranges have been banned for any campaign by the Commander of Meekamui in the area, DAMIAN KOIKE.

Despite these set backs the people in these areas have voted in other places other than their area in all the elections that Bougainville held after the conflict.

Reasons for the ban is not known but local chiefs are trying to negotiate with the Commander to allow the election process to be carried in these areas.

Bougainville Election News : No secret deal with Rio Tinto over BCL says PNG PM Prime Minister O’Neill

 

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“President Momis has been informed of whatever talks we have with other shareholders of BCL, only because the State is a second biggest shareholder. My statement in Arawa and Panguna remain very relevant today, that there are no mine opening talks until landowners and the people of Bougainville are ready.

President Momis should stop blaming the Papua New Guinea Government for all that is going wrong in Bougainville and accept some responsibility as he has been in charge for many years now.”

Comment from the Prime Minister, Hon. Peter O’Neill CMG MP, following the release of a statement by President John Momis of the Autonomous Region of Bougainville relating to Bougainville Copper Limited (BCL) shares:

“The Autonomous Bougainville Government (ABG) has been deeply concerned at the possibility that Rio and PNG might be contemplating trading shares in BCL. The only valuable asset that BCL has is its limited rights over minerals at Panguna. Trading in Bougainville’s minerals between Rio and the Australian colonial Administration occurred in the 1960s, without any reference to Bougainville. We cannot allow a new form of colonial dealings in Bougainville’s resources to occur.”

Full Momis statement here

President John Momis has called for the Prime Minister O’Neill and the global mining giant , Rio Tinto, to reveal any dealings between PNG and Rio Tinto in Rio Tinto’s shares in Bougainville Copper Ltd (BCL). Rio Tinto is the majority shareholder in BCL, with 53 per cent equity. In August 2014, Rio Tinto announced a review of its investment in BCL.

“The Government of Papua New Guinea is a shareholder in Bougainville Copper Limited. Mr O’Neil went on to say

“We have had discussions with other shareholders of BCL on a range of issues including the reopening of the Mine and disposal of shares by existing shareholders including Rio Tinto.

“There are no secret deals and we are disappointed that President Momis is trying use this issue at the time of the election that is taking place today.

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My statement in Arawa and Paguna remain very relevant today, that there are no mine opening talks until landowners and the people of Bougainville are ready.

Bougainville Election News: MOMIS: “NO” TO PNG BUYING RIO TINTO SHARES IN BCL

 

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“The Autonomous Bougainville Government (ABG) has been deeply concerned at the possibility that Rio and PNG might be contemplating trading shares in BCL. The only valuable asset that BCL has is its limited rights over minerals at Panguna. Trading in Bougainville’s minerals between Rio and the Australian colonial Administration occurred in the 1960s, without any reference to Bougainville. We cannot allow a new form of colonial dealings in Bougainville’s resources to occur.”

President John Momis has called for the Prime Minister O’Neill and the global mining giant , Rio Tinto, to reveal any dealings between PNG and Rio Tinto in Rio Tinto’s shares in Bougainville Copper Ltd (BCL).

Rio Tinto is the majority shareholder in BCL, with 53 per cent equity. In August 2014, Rio Tinto announced a review of its investment in BCL.

The President said:

“For over a year now, Prime Minister O’Neill has expressed interest in the National Government taking control of BCL. He proposes that PNG operate the Panguna mine in Bougainville in the same way it operates the Ok Tedi mine. The Prime Minister expressed that view to me early in 2014, and to members of the Bougainville group known as the Me’ekamui Government of Unity.

“In 2014 I made two strong statements against the Prime Minister’s proposal, the most recent dated 11 December. In that statement, and in a letter to the Prime Minister of 11 December, I made it clear that all decisions about mining in Bougainville must be made by the Autonomous Bougainville Government. I also spelt out that it would be completely unacceptable to Bougainvilleans for the National Government operate the Panguna mine.

“The Prime Minister replied in a letter dated January, but not received by me till late March. Amongst other things he said the National Government had no intention of taking control of the Panguna Mine.

“But as yet unconfirmed information available to me indicates that the National Government may be planning to purchase the Rio Tinto 53 per cent share in BCL. The National Government has always held 19.3 per cent of the BCL shares, and so if it takes Rio’s shares it would own over 72 of the equity.

“On 20th March, I wrote to BCL, seeking advice from either BCL or Rio Tinto, about the whether such share transactions between Rio and PNG were under discussion or preparation. I received a brief reply from Rio, addressed to BCL but passed on to me, dated 23 March.

The letter simply stated that ‘Rio Tinto … was reviewing its options with respect to its stake in Bougainville Copper Limited. This review is continuing.’

“The Autonomous Bougainville Government (ABG) has been deeply concerned at the possibility that Rio and PNG might be contemplating trading shares in BCL. The only valuable asset that BCL has is its limited rights over minerals at Panguna. Trading in Bougainville’s minerals between Rio and the Australian colonial Administration occurred in the 1960s, without any reference to Bougainville. We cannot allow a new form of colonial dealings in Bougainville’s resources to occur.

“Secret dealings of this kind are completely unacceptable to the people of Bougainville and so the ABG. It would be equally unacceptable to the people of Bougainville for the National Government to try to take control of Panguna. As I said in my public statement in December: ‘Any attempt by the National Government to control mining in Bougainville could cause Bougainvilleans to lose all faith in the BPA (Bougainville Peace Agreement). Many would refuse to work with the National Government any more. They would want immediate independence. It would be a recipe for undermining, perhaps even destroying, support for the BPA.’

President Momis said that as a result of the gravely serious issues involved, he was now calling on both the Prime Minister and Rio Tinto to clarify the position: ‘They must state publicly and clearly whether or not either of them is planning, or is in any way involved, in preparing for or conducting, any transaction involving transfer of Rio Tinto’s shares in BCL, either to the PNG Government or to any entity controlled by or involving PNG’.

The President also said that as a result of ABG mining laws passed in August 2014 and March 2015, the only legal right BCL has in Bougainville is an exploration licence over the former Special Mining Lease at Panguna. He said:

“That exploration licence is intended to put BCL in the same position as any exploration licence holder that has completed exploration, and wants to apply for an negotiate about possible grant of a mining licence. It gives BCL a right to negotiate the conditions on which it might be allowed to resume mining, but only if it gets permission from both customary landowners and the ABG.

“It is normal for mining laws to allow withdrawal of an exploration licence if there are any commercial dealings in the licence in the first two years after it is granted. In passing the Bougainville Mining Act 2015 in March, the ABG House of Representatives amended section 112 of the Act to make it clear that dealings in more than 25 per cent of the shares in any company holding an exploration licence will also allow withdrawal of the licence.

“Both Rio Tinto and the Prime Minister need to be aware that transfer of Rio’s shares in BCL in the two years since BCL’s exploration licence came into operation, in August 2014, will result in action to withdraw that licence. In the meantime, I call on them to clarify the issues I am raising in this statement”

Chief John. L. Momis

 

Bougainville Mining News: Rumbles from the jungle as Bougainville mine stirs

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The big questions hanging over the mine right now include: who will run the Autonomous Bougainville Government after the election due at the end of May? Nine figures are contending the presidency, including several former combatants, with the front runners probably former Catholic priest John Momis, the veteran incumbent, and Sam Akoitai, a former national mining minister.

The next government will have the responsibility of setting the parameters for the referendum on independence that must happen at some time during the five years from this July.

The Panguna mine on Bougainville Island would cost $6.5bn to restart.

Source: The Australian Rowan Callick News Limited

Even the long-suffering Bougainville Copper board, which has witnessed cargo cults, wars, and the closure of its own vast mine, was puzzled when its share price soared 50 per cent a week ago.

For this sudden surge of confidence appeared, oddly, to have been triggered by troubling news for the company — the commencement of a new Mining Act passed by the Bougainville autonomous region’s parliament, which hands back control of all resources to landowners.

The future of the Bougainville mine, which still contains copper and gold worth about $50 billion, is tied up with its complex past, with the long geopolitical shadow cast by the 1989-2001 civil war on the island — and with cargo-­cultist hopes held out by local leaders allied to eccentric foreigners constantly seeking to seize control of the resources from BCL.

The ASX issued a “speeding ticket”, asking the company to explain the April 2 share price leap. BCL replied that it couldn’t.

The price had slid back down to 28c by Friday.

The directors of the company, which is 53.58 per cent owned by Rio Tinto, 19.06 per cent by the Papua New Guinea government, and 27.36 per cent by other shareholders, are trying to juggle an enormous range of unknowns and variables, without even the compensating benefits of having a mine to run.

It has remained closed since May 1989, and would cost upwards of $6.5bn to reopen.

The big questions hanging over the mine right now include: who will run the Autonomous Bougainville Government after the election due at the end of May? Nine figures are contending the presidency, including several former combatants, with the front runners probably former Catholic priest John Momis, the veteran incumbent, and Sam Akoitai, a former national mining minister.

The next government will have the responsibility of setting the parameters for the referendum on independence that must happen at some time during the five years from this July.

What will be the response of the national government led by Prime Minister Peter O’Neill to the new Bougainville mining law? National legislation insists that, as in Australia, such resources are owned by the state.

And Mr O’Neill has hired Peter Graham, who led the remarkably successful construction of the country’s first liquefied natural gas project for ExxonMobil, to manage the Ok Tedi mine, which the Port Moresby government nationalised — and may be eager to deploy his skills to reopening Bougainville too, if Rio chooses to sell to PNG.

What does Rio itself want? At the end of 2014, it announced from London that it was reviewing its BCL stake.

It has not entirely lost its stomach for complex, ever-changing negotiations in developing countries with governments lacking the disciplines of party politics — managing director Sam Walsh only recently flew to Mongolia for talks about the constantly challenging Oyu Tolgoi copper and gold mine there.

But it could follow BHP-­Billiton, after its Ok Tedi debacle, in placing PNG in the ultimately-too-hard basket.

The key question is what do the landowners want? If they don’t want a mine back, it won’t happen.

Many do favour a reopening, since they see no alternative source of income for their families on the horizon — the agricultural potential for Bougainville is all on the coast, rather than in the mountains.

But they are themselves split into about nine recognisable factions — whereas at the time the mine was set up, during Australian colonial days, they spoke as a unified group.

The legislation does not specifically mention the BCL mine, because it is intended to cover the whole of the highly prospective region, which has since the onset of the civil war attracted growing numbers of carpetbaggers seeking to set up their own private operations — almost always seeking gold — in collaboration with ex-combatants who often retain guns.

Formerly, BCL was granted the only mining licence in Bougainville, which it still holds — but from the PNG government — while the Bougainville government now says its legislation supersedes the national legislation, under the accord agreed at the peace conference that ended the conflict.

The company is not only governed by legislation, but operated the mine under a contract with the PNG government that remains in force.

Peter Taylor, who has been chairman of BCL for 12 years, said that “the Bougainville government seems to want the mine reopened, but we have to sit down around a table and see what’s do­able.”

He said he remained confident that “if there’s a will there to get the mine reopened, we will find a way. But we’re talking a long lead time.’

When the first study about reopening was conducted, the copper and gold prices were lower than today — but that’s not the key issue: “We’re a mining business, not a trading business,” he said.

“It will happen only if the government and the landowners want it to happen.”

President John Momis, who has driven Bougainville’s new Mining Act, said that with it, “we are completely rejecting the terrible past. The Act recognises that all owners of customary land own all minerals in, on and under their land.” And now those who joined the civil war on the side of the Bougainville Revolutionary Army based around the mine site at Panguna, are also entitled, under custom, to share in any proceeds from that land.

Bougainville Election News: Former ABG opponents now backing Bougainville poll says Tanis

 

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“What they know is that there is no other way out. Bougainville needs to move ahead, implement the Peace Agreement and conduct the referendum. So that the question of Bougainville independence is put to rest once and for all.”

Former Bougainville president, James Tanis Speaking to RadioNZ

 James Tanis, says former opponents of the autonomous government have thrown their support behind next month’s election process.

The Papua New Guinea province goes to the polls for two weeks from May 11th.

Mr Tanis, who was president from 2008 to 2010 but is not standing this time, says there is broad agreement among the nine presidential candidates on the critical issues of mining and the independence referendum.

And he says last week he witnessed a delegation from the Panguna region, including members of the former separatist group the Me’ekamui, giving its backing to candidates and the autonomous government.

Mr Tanis says they recognise it is time to move on.

“What they know is that there is no other way out. Bougainville needs to move ahead, implement the Peace Agreement and conduct the referendum. So that the question of Bougainville independence is put to rest once and for all.”

He says, from what he is hearing, all the candidates seem committed to ensuring the referendum on possible independence from PNG, to be held within the next term, is successful.

“And so far I have heard, including President Momis, assuring that they are committed to Bougainville independence through a referendum. So there seems not much difference among the candidates, so far.”

FULL LIST OF CANDIDATES FOR 2015 ELECTIONS

As nominations for the 2015 ABG General Elections closed at 4pm Bougainville Standard Time on Wednesday afternoon, it was officially declared that three hundred and forty-two candidates will be contesting in this year’s election.
Out of these three hundred and forty-two candidates, thirty-four are women candidates while the rest; two hundred and eight are all male candidates.
Out of these thirty-three women candidates, ten women will be contesting the North Bougainville Women’s seat; six women will be contesting the Central Bougainville women’s seat while seven women will be contesting the women’s seat for South Bougainville.
With a total of twenty-three women candidates vying for the only three reserved seats for women in parliament, only eleven women have decided to contest in the open seats and challenge the men.

CANDIDATES LISTS 2015 ABG General Elections

Presidential seat
No. Candidates names Box #
1 Nick F Peniai 10
2 Justin Pokata Kira 11
3 Sam Kauona 12
4 Peter Nerau 13
5 Sam Akoitai 14
6 Fr. Simon Dumarinu 15
7 Dr. Chief John Momis 16
8 Ismael Toroama 17
9 Reuben Siara 18

North Bougainville seats

Former Combatants
1 David Tsika 10
2 Ben Malatan Getsi 11
3 Glen Tovirika 12
4 Charles Tanahan Getsi 13
5 Franco Hopping 14
6 Francis Boisivere 15
7 Ben Kamda 16
8 Stanley Maiah 17
9 Julian Nahis 18
10 Stanis Sabuin 19
11 Ignatius Sopolo 20
12 Michael Mita Jimmy 21
13 Gregory Manau 22
14 Marcelline Getsi Laris 23

Women
1 Elizabeth Peahun 10
2 Lina Paii 11
3 Patricia Kapapal 12
4 Hellen Siumana 13
5 Francisca Semoso 14
6 Anastacia Lapointe 15
7 Macrine Sagi Lavi 16
8 Elizabeth Burain 17
9 Dr Naomi Tulaha 18
10 Dolores Teilu Rumina 19

Tsitalato
1 Robert Sikika 10
2 Scholastica Miriori 11
3 John Bosco Ragu 12
4 Cosmas Sohia 13
5 Godfrey Holi Lerrin 14
6 Fidelis Semoso 15
7 Pais Kenu Taboa 16

Peit
1 Daniel Tukana 10
2 Ernest Saliib 11
3 Hubert Pius Tihin 12
4 Raphael Keneh 13
5 Bernard Bobos 14
6 Jude Ariss 15
7 Gabriel Mahen Katun 16
8 Anthony Maneas 17
9 Simon Haoni 18
10 Paul Paro Musein 19
11 Josephine Getsi 20
12 Jerome Tsingoli Sawa 21

Tonsu
1 Isaac Heken Thompson 10
2 Kout Kavop 11
3 Joel L Banam 12
4 Benjamin Tsiuh 13
5 Jock Tuvuir 14
6 Cicely Kiots Kekun 15
7 Uzziah Toukes 16
8 Esban Giaria 17
9 Dudley Matuan 18
10 Ezekiel Joneh Masatt 19
11 Eddie Mohin Tugein 20
12 Israel Kout 21
13 Jerry Kavop 22

Haku
1 Denis Sareke 10
2 Sylvester Niu 11
3 Hona Holan 12
4 Michael Meten 13
5 Maximilian Bong 14
6 Benjamin Murana 15
7 Leslie Gimus 16
8 Augustine Matuna 17
9 Joe Elijah 18
10 Samuel Kameren 19
11 Thomas Dion Sohia 20
12 Simeon Jina 21
13 Paul Kehono 22
14 James Langer Biani 23
15 Philip Kunes 24
16 Robert Chika Tulsa 25
17 Mathew Biani Gagesin 26
18 Michael Latu Koran 27
19 Peter Gano 28
20 Nakin Aland 29
21 Wesley Tsurumi 30
22 Xavier Kareku 31
23 Peter Kiha 32
24 Anthony Tsiringin 33

Halia
1 Alphonse Ratsi 10
2 Ephraim Hakiolo 11
3 Mech Robin 12
4 Poly Sahoto 13
5 Patrick Nisira 14

Hagogohe
1 Regina Tsikoa 10
2 Robert Hamal Sawa 11
3 Gerald Hanette 12
4 Callistus Toarats 13
5 Peter Sohia 14

Selau
1 Terry Mose 10
2 Linus Sahoto 11
3 Luke Pawen 12
4 Tony Tsora 13
5 Peter Koben 14
6 Patrick Tsikoa 15
7 Joseph Watawi 16
8 Godfrey Torowin 17
9 John Cheung 18
10 Batholomew Kiwa Magara 19
11 Hillary Tsunno 20
12 Peter John Barik 21
13 Cornelius Getsi 22
14 Alfred Buakar

Nissan
1 Charry Napto Kiso 10
2 Nathaniel Brunis 11
3 Wilfred Reiter Hannett 12
4 Peter Dosti 13
5 Timothy Misiliu 14
6 Agnes Titus 15

Suir
1 Alex Amon 10
2 Paul Vinton 11
3 Anthony Rovesi 12
4 Vincent Vagasi 13
5 Paul Ebabon 14
6 Benny Primus 15
7 Luke Karaston 16
8 Maxwell Seselan 17
9 Peter Boemvi

Mahari
1 Anthony Tatsiua 10
2 Francis Kakarouts 11
3 John Tabinaman 12
4 Solomon Ngosei Gimis 13
5 Rachael Vau Tsien 14
6 John Komai 15
7 Herman Siriva 16
8 Chrissanto Poto 17

Teua
1 Robert Semoso 10
2 Daniel Tokapip 11
3 Charles Kakapetai 12
4 Joseph Nopei 13
5 Gerard Sinato 14
6 Nicholas Eteo 15

Taonita Tinputz
1 David Braun Vatavi 10
2 Bruno Babato 11
3 Dyson Kaetavara 12
4 George Irei Sayer 13
5 Aloys Tony Devui 14
6 Robert Singko Kekevio 15

Taonita Teop
1 Micah Mose 10
2 Ezekiel Ivihi 11
3 Raopos Apou Tepaia 12
4 Rita Mamavi Pearson 13
5 Rex Marlon Veoriva 14
6 Albert Toro Morokea 15
7 Lesley Sorou 16
8 Rev. Robert Malachi Sanasi 17
9 Joel Toges 18
10 Joseph Tomisa Gitovea 19
11 Gordon Purupuru 20

Atolls
1 Aruka Kareo 10
2 Raymond Masono 11
3 Bernard Tunim 12
4 Pasini Marena 13
5 Taehu Pais 14
6 Huitona Tohua 15
7 Alfred Lulu 16
8 Fr. John Bosco Kensie 17

Central Bougainville seats

Former Combatants
1 Danny Muntaa 10
2 Linus Dakei Junior 11
3 Demus Aumo Vaii 12
4 Isoa Kauona 13
5 Steven Topesi 14
6 Daniel Busula 15
7 Noah Doko 16

Women
1 Joan Jerome 10
2 Marcelline Kokiai 11
3 Elizabeth Bade Niniku 12
4 Lynette Ona 13
5 Florence Wangi 14
6 Angela M Kavaru 15

Rau
1 Robert Baranangko 10
2 Simon Simoli 11
3 Simon Rumbia 12
4 Steven Teteo 13
5 Joseph Kakito 14
6 Pais Tatevi Geviahic 15
7 Thomas Keriri 16
8 Obed J Arito 17
9 Martin Norrie 18

Terra
1 Robin Wilson 10
2 Joseph David Monsin 11
3 Francis Hasing 12
4 Anton Kinomen 13
5 Leo Reivasi 14
6 Jacob Rerevate 15

Eivio Torau
1 Clarence Dency 10
2 Lawrence Sirapui 11
3 Joseph Birunoim 12
4 Robin Naika 13
5 Channel Suston 14
6 Francis P Hera 15
7 Isidore Okowai 16
8 Melchior Dare 17
9 Richard Birikos 18
10 Julian Javi 19
11 Albert Tosia 20

Ioro
1 Michael Oni 10
2 Martin Miriori 11
3 Raphael Evinu 12
4 Wendalinus Bitanuma 13
5 Boniface Arunara 14
6 Michael Lapolela 15

North Nasioi
1 Arnold Baraung 10
2 Steven Kiwi 11
3 Mark Niniku 12
4 Dominic Diuka 13
5 Frank Nigu 14
6 Oti Asotau 15
7 David Dewe Dentana 16
8 Nicholas Darku 17
9 Mathias Roman Salas 18
10 Steven Simiha 19

South Nasioi
1 John Ken 10
2 Thaddeus Davanara 11
3 David Sisito 12
4 Paias Marko 13
5 Gregory Birona 14
6 Simeon Tampaaka 15
7 Ismenia Ketsin 16
8 John Okia 17
9 Simon Oriai Dasiona 18

Kongara
1 Dominic Itta 10
2 Graham Davaku 11

Kokoda
1 John Narebo 10
2 Lawrence Hakout 11
3 Moses Siparu 12
4 Robert Ereva 13
5 Edmund Bampa 14
6 Rodney Osioco 15

South Bougainville Seats

Former Combatants
1 Thomas Tari NA
2 Cornelius Solomon NA
3 Joshua Kangku NA
4 Peter Naguo NA
5 Simon Tohui NA

Women
1 Lillian Tinga Ahai NA
2 Bernadette Neras NA
3 Rose Pihei NA
4 Jembosheba Matanie NA
5 Dorothy Kani NA
6 Martha Kareba NA
7 Isabella Peta NA

Konnou
1 Bruno Laita NA
2 Miriam Labanue NA
3 Willie Masiu NA
4 Andrew Peugai NA
5 Wilfred Komba NA
6 Mary Mamatau NA
7 Kaison Potoura NA
8 John Kebau NA

Lule
1 John Kinani Kore
2 Robert Korupai
3 Mathew Nanou
4 Francis Toke
5 Xavier Pirigi
6 Joseph Kopana Putubu
7 Joseph Kangki Nabuai
8 Joseph Kinani Kaima

Makis
1 Michael Laita 10
2 Muure Joseph Kamuai 11
3 John Vianney Kepas 12
4 Joseph Mokuma 13
5 Raphael Siko 14
6 Newton Kauva 15
7 Aloysius Tumare 16

Baubake
1 Steven Kopana 10
2 Jonathan Komba 11
3 John Pookey Sigere 12
4 Charles Laia 13
5 Joseph Buia 14
6 Paul Bakoi 15
7 Joseph Tooke 16
8 Thomas Joseph Lugabai 17

Torokina
1 Thomas Usu NA
2 John Pama NA
3 William Epota NA
4 Godfrey Barako NA
5 Francis Makita NA
6 George Diva NA
7 Steven Suako NA
8 Boniface Wadari NA
9 Robin Kenaus NA
10 Michael Piriri NA

Motuna Huyono Tokunutui
1 Albert Punghau 10
2 David Transcend Pumau 11
3 Aloysius Luku 12
4 Thomas Wawoitu 13
5 Nicholas Lauta 14
6 Paul Lapun 15
7 Andrew Kambai 16
8 Francis Hurahura 17

Kopii
1 John Hirupe 10
2 Simon Sipiau 11
3 John Sania 12
4 Jacob Moio Tanasu 13
5 Sammy Maurua 14
6 Philip Kuhena 15
7 Seru Maimoi 16
8 Peter Siunai 17
9 Michael Komoiki 18
10 Peter Uniu 19

Ramu
1 John Karou 10
2 Sam Tanari 11
3 Rev. Ben Toworai 12
4 Thomas Pataaku 13
5 Tony Poroni 14
6 Michael Nabuai Cornelius 15

Bolave
1 Michael Anugu 10
2 Joe Kaleaa 11
3 Thomas Kama 12
4 Simon Wergon 13
5 Francis Takuko 14
6 Martin Koba 15
7 Joan Nenoari 16
8 Dennis Alexman Lokonai 17

Lato
1 Chris Tuwen 10
2 Philip Rumbali 11
3 Gideon Siaka 12
4 Christopher Kena 13
5 William Lavabua 14
6 William Tomokas 15
7 Patrick Leslie 16

Baba
1 Thaddeus Kaile 10
2 Thomas Pabakumi 11
3 Cosmas Namahui 12
4 Emmanuel Carlos Kaetavara 13
5 John Urubau 14
6 Bernard Namung 15
7 Patrick Heromate 16
8 Philip Silas 17
9 William Silamai 18
10 James Hayu 19
11 Paul Wagum 20

 

 

Bougainville Mining News : PNG Govt Member Miringtoro and Jubilee not happy with new Mining Bill

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By Aloysius Laukai Bougainville News Editor :
The member for Central Bougainville and Minister for Communication in the Papua New Guinea National Government, JIMMY MIRINGTORO told New Dawn FM from Port Moresby that he was not happy that the ABG has rushed this bill on the eve of the ABG General elections.

He said that the ABG should have let the passing of the bill to the next government after more scrutiny from all stakeholders on Bougainville.

MR. MIRINGTORO said that pushing the bill on the eve of the ABG Elections is not proper as other outstanding issues were still not resolved on the future of mining on Bougainville.

He said that from day one he had warned the ABG against the bill especially when the people are still in the dark of this bill that could take away their rights form their land and resources forever.

MR. MIRINGTORO also said that the bill was written by outsiders like the Adam Smith International who have been involved in controversial development policies in the third world.

He said that it was unfortunate the government did not listen to the cries of the citizens and passed the bill.

Meanwhile, New Dawn FM understands that if there are some issues that have not been highlighted can now be done through an amendment of the Bougainville Mining Law by the next ABG Government that will come after the ABG General Elections.

The writs for the election were issued by the Speaker, ANDREW MIRIKI at 4pm this Friday March 27th.

 Jubilee Australia comments on the Bougainville Mining Bill 2014

In February 2015, Jubilee Australia with Bismarck Ramu Group and the International State Crime Initiative wrote to Mr Stephen Burain, the Minister for Mining in the Autonomous Government of Bougainville, commenting on the Bougainville Mining Bill 2014. See the full response here:

Mr. Stephen Burain

Minister for Mining

Autonomous Government of Bougainville

Dear Mr Burain,

As part of our enduring commitment to the mine affected communities in the Panguna region we would like to comment on the Bougainville Mining Bill 2014 drafted by Adam Smith International at the direction of the Autonomous Bougainville Government (ABG).

We gratefully received a copy of the draft mining legislation and regulations from the ABG in December. Our understanding is that the legislation is slated to be voted on in March. As the window is limited for commentary on the documents – which come to 508 pages in length – we have decided to enumerate below some preliminary feedback on the legislation, and the consultation process preceding its proposed approval by Bougainville’s parliament.

1)      Consultation and Independent Assessment

Given that the legislation will lead to the temporary alienation of customary land, with wide ranging effects on the social, economic, cultural and physical life of impacted communities, it is important that the draft mining bill and regulations are subject to a widespread and thorough process of consultation, discussion and independent scrutiny, as affirmed in international treaties,[1] as a principle of international law,[2] and in international best-practice reporting.[3] As the final draft of the mining bill was delivered during November by Adam Smith International, it would seem appropriate to allow a significant period for consultation and revision, in order to give communities across Bougainville adequate time to organise themselves, seek independent expert advice, discuss the legislation, and prepare their response. While a prolonged consultation period would not be appropriate for all draft bills, given that mining has historically been a highly contentious issue on Bougainville, building a legislative framework over which all communities feel a sense of ownership is vital. Coupled to this, the legal complexity of the draft mining bill and associated regulations, make such a prolonged consultation period necessary, so that communities are afforded the time and space to appreciate all the relevant provisions and their long-term implications.

2)      Financial Support to Impacted Communities

It is important that financial resources are made available to those communities who reside on or near mineral resources that are likely to be affected by the bill in the foreseeable future, so they may acquire independent expertise to help them evaluate the draft and share their concerns with the ABG.[4] It is critical that communities are empowered to choose their own sources of independent expert advice, while observing relevant good governance procedure.

3)      Free, Prior and Informed Consent

More specifically on the contents of the draft Bougainville Mining Bill 2014, in light of mining’s contentious history on Bougainville it is especially important that the legislation should encompass best practice with respect to free, informed, prior consent, and echo the standards set out in key international covenants including the International Covenant on Civil and Political Rights, International Covenant on Economic Social and Cultural Rights, UN Declaration on the Rights of Indigenous Peoples, and ILO Convention 169. In this respect we would like to highlight a number of preliminary concerns to take into consideration:

         A. Access to Information

In order to conform to best practice the legislation must empower traditional landowning communities by inscribing them with a number of positive rights, including the right to access independent sources of information and expert advice, coupled to a right to receive adequate financial support to seek this advice.[5] By independent sources of information and expert advice, we mean recognised experts who are not linked with the extractive industries or government, whether it be through position or financially, and who can be relied on to act in the best interests of the contracting community. It is concerning that the current draft bill does not appear to afford communities these fundamental positive rights.

        B. Independent Community Consultation

There needs to be more robust mechanisms included in the bill assuring the comprehensibility and independence of the community-consultation process, preceding a mine’s initiation.[6] As it stands, the bill places responsibility on mining companies holding an exploration license or mining lease to develop and enact community engagement plans. While mining companies, of course, have a legitimate place in the consultation process, it is essential that the plan and strategy is implemented by an independent arms-length organisational actor, with an overarching responsibility to act in the best interests of landowners and the public.

       C. Inclusive Consent Processes

More robust measures of consent should be set out in the bill which ensure a clear majority of adult aged landowning community members, whose social, economic, cultural and physical life will be seriously impacted by the project, support the venture, after receiving comprehensive, independent advice on the project’s economic, social, cultural and economic impacts. [7] At the moment, a landowner association approved by the Bougainville Executive Council, can consent to exploration licences and mining leases on behalf of the communities they represent. In light of historical examples in Bougainville, there is serious risk that without further safeguards landowner associations will not be inclusive of vulnerable groups and customary leaders, particularly if association processes and procedures are in a language and cultural form which are inaccessible to a large section of the affected population. Therefore, this current model does not appear to offer a robust mechanism for assuring community-wide participation in the consultation process or when measuring consent. We believe the legislation needs to adopt more robust mechanisms for measuring consent that ensure mining projects are supported by a clear majority of adult-aged landowning community members, whose social, economic, cultural and physical life will be seriously impacted by the project, after receiving comprehensive, independent advice on the project’s economic, social, cultural and economic impacts. It should also include measures that help communities build cooperative, culturally inclusive organisational frameworks that will empower them to participate in the consultation and negotiation process.

       D. Access to Remedy

There need to be independent grievance and accountability mechanisms inscribed into the legislation that empower communities to seek remedies for abuses of rights or legal procedure, whether by a private or governmental actor.[8] This grievance mechanism and body must be at arms-length from all mine stakeholders. Currently no such mechanism exists in the draft bill.

        E. Human Rights Due Diligence

The draft bill needs to include robust human rights standards that mine operators must observe or face serious sanction, with remedies in place for violations of these standards.[9] Not only have mining operators on Bougainville participated in human rights abuses, this behaviour may also be witnessed across Papua New Guinea. Currently the bill does not offer a robust framework for addressing this enduring issue[10].

As you will appreciate, these comments are based off a preliminary reading of the draft bill. Nonetheless, we hope you find this feedback useful, and we welcome a continuing conversation on the issues raised within.

With sincere regards,

Brynnie Goodwill, CEO Jubilee Australia

Co-signed: Bismarck Ramu Group

Co-signed: International State Crime Initiative


[1] ILO Convention 169 concerning Indigenous and Tribal Peoples in Independent Countries, Article 6; International Covenant on Civil and Political Rights, Article 27; International Covenant on Economic Social and Cultural Rights, Article 15; UN Declaration on the Rights of Indigenous Peoples, Article 19

[2] Kichwa Indigenous People of Sarayaku v. Ecuador, Judgment, Inter-AM. Ct. H.R. (Ser. C) No. 242, (June 27, 2012), at para. 164.

[3] UN-REDD (2012) Free, Prior and Informed Consent for REDD+ in the Asia-Pacific Region: Lessons Learned, report available online: http://www.unredd.net/index.php?option=com_docman&task=doc_download&gid=8047&Itemid=53 (accessed on 20 January 2015)

[4] UN Declaration on the Rights of Indigenous Peoples, Article 27 & 39.

[5] ILO Convention 169 concerning Indigenous and Tribal Peoples in Independent Countries, Article 7; UN Declaration on the Rights of Indigenous Peoples, Article 27 & 39

[6] ILO Convention 169 concerning Indigenous and Tribal Peoples in Independent Countries, Article 15; UN Declaration on the Rights of Indigenous Peoples, Article 32

[7] Ibid

[8] UN Declaration on the Rights of Indigenous Peoples, Article 11, UN Guiding Principles on Business and Human Rights, Principles 25, 26, 27, 28, 31,

[9] UN Guiding Principles on Business and Human Rights, Principles 6, 7, 9

[10] Un Guiding Principles on Business and Human Rights, Principle 3

Momis Speech : Bougainville’s preparation for a referendum on our future political status

Challenges of Implementing the Bougainville Peace Agreement / Jo

“There is considerable international community interest in the preparations necessary for the referendum. In particular, the United Nations was requested last year to undertake a scoping visit to assess what its roles might be in supporting both the 2015 elections, and the referendum. The UN scoping team visited Port Moresby and Bougainville in February, and has recently provided a report to both governments, highlighting important issues about the work required, and proposing important roles that the UN can play in preparations for and conduct of the referendum.

I know all Bougainvilleans will support and welcome the close involvement of the UN as we continue to implement the Peace Agreement provisions on the referendum”

HON. CHIEF JOHN MOMIS PRESIDENT

AUTONOMOUS REGION OF BOUGAINVILLE  HOUSE OF REPRESENTATIVES

 STATEMENT TO THE HOUSE THURSDAY 26 MARCH 2015

 PREPARATIONS FOR THE REFERENDUM  ON BOUGAINVILLE’S FUTURE POLITICAL STATUS

Mr. Speaker:

I rise to make a brief statement about a matter of the greatest importance to Bougainville.

As we all know, the Bougainville Peace Agreement, which was given effect by amendments to the National Constitution, and the making of the Bougainville Constitution, guarantees that Bougainvilleans can vote in a referendum on the future political status of Bougainville. That referendum must include the “choice of a separate independence for Bougainville”.

This is a momentous choice. Very few people’s anywhere in the world have the opportunity for a referendum on their self-determination. The Peace Agreement has been a remarkable achievement for all Bougainvilleans.

The referendum must be held between mid-2015 and mid-2020. In other words, it must be held sometime during the term of the next ABG House.

I am making this short statement mainly to inform this House, and through you, the members of the House, about progress made under this, the second ABG House, in making the necessary preparations for the referendum.

The referendum is the third of the three pillars of the Bougainville Peace Agreement to be implemented. Considerable progress has been made on implementation of the other two pillars. As we all know, those two pillars are weapons disposal and autonomy.

With weapons disposal, the UN mission in Bougainville supervised the weapons disposal process, from 2001 to 2005. Until mid-2003 the UN was assisted by the PMG. Almost 2,000 weapons were handed in by former combatants.

With autonomy, there has also been considerable progress. We have together made the Bougainville Constitution, established our own institutions of Government, held elections for two ABG Houses (one from 2005 to 2010, and one from 2010 to 2015). Transfer of powers to the ABG started slowly, with the first requests for transfer made by President Kabui in 2006. During this, the second House, the progress with transfer has speeded up. We have taken over many new powers, and made new Bougainville policies and laws on a number of important subjects. From 2014, they have included establishing a separate Bougainville Public Service, a separate Bougainville public finance management system, and our own mining laws.

Though we have taken great strides with both weapons disposal and autonomy, there is still work to be done to maintain and keep building both pillars. And much of that remaining work on those pillars is closely related to the third pillar – the referendum on independence. I will come back to those issues, and clarify the relationship of weapons and autonomy to the referendum, at the end of this statement.

Mr. Speaker:

The Bougainville Peace Agreement was negotiated between June 1999 and August 2001. Although all aspects of the referendum that we could properly deal with then were covered in the Agreement, some significant issues could not be resolved at that time. They were deliberately left till later consultation and negotiations between the two governments.

I will outline some of the most important of those issues still to be decided. But before doing so, I must emphasise that it was because there are so many referendum issues to be dealt with, that more than three years ago, my Government took up the issue of referendum preparations in the JSB. As a result, a Joint Referendum Working Group was established. It has been working ever since, and it reports regularly to the JSB.

The ongoing work of that Joint Referendum Working Group has already assisted the JSB to make a decision, in 2014, on one of the most important issued that was deferred by the Peace Agreement. That was the issue of the agency, or body, that will conduct the referendum. The Peace Agreement and the National Constitution provided several options. Last year, the ABG and the National Government agreed that the referendum should be conducted by a completely independent institution, operating under a Charter that must be agreed between the two governments.

Perhaps the most critical issue that was deferred by the Peace Agreement was the decision on when the referendum will be held – the date of the referendum. It was agreed, however, that it could be no earlier than 10 years after the ABG was established, and no later than 15 years. It was also agreed that the date within that 5 year window would be agreed between the ABG and the National Government.

In consulting about the date, the two governments are required to take account of:

“whether:

  1. weapons have been disposed of in accordance with the Agreement; and
  2. … it has been determined that the Bougainville Government has been and is being conducted in accordance with internationally accepted standards of good governance.”

It is very clear from the wording of the Agreement and of the National Constitution that these matters are to be considered only for the purposes of setting the date within the five year period ending mid-2020. Issues about weapons and good governance cannot in any way be used to delay the referendum beyond mid-2020.

Because the decision on the date was deferred, that is going to be one of the most important matters that the third ABG will need to consult about and agree with the National Government. I have already begun the discussions on the issue with Prime Minister O’Neill, suggesting that 2019 should be considered. But as yet there has not been a decision on the issue.

Many other aspects of the referendum arrangements must also be agreed between the two governments. Perhaps the three most important aspects that will need to be resolved are:

  • The wording of the question, or the questions, that will be asked in the referendum – but I emphasise that whatever is decided, the Peace Agreement and the Constitution are clear that the “choice of separate independence for Bougainville” must be included.
  • The Charter for the agreed independent agency (which will spell out the duties and responsibilities of the agency, for those have not yet been defined); and
  • The qualifications for enrolment to vote in the referendum for Bougainvilleans not resident in Bougainville.

The most important issue of all has also been deferred, till after the referendum. That is the decision on implementation of the decision of the referendum. Under the Peace Agreement, the two governments are also required to consult about that. But the compromise on the referendum made in 2001 was that power to make the final decision on implementation rests with the National Parliament.

Mr. Speaker,

Clearly, there are many significant issues about:

  • the preparations for,
  • conduct of, and
  • implementation of,

the referendum that will have to be negotiated.

In addition, because neither the National Government nor the ABG has any experience of the conduct of referendums, there are many aspects of practical arrangements for the conduct of the referendum that will have to be decided jointly.

The two governments agreed last year on obtaining a report from an administration expert on the streams of work that will be needed to prepare for decisions on the major issues I’ve mentioned, as well as on more general administrative preparations for the referendum. The report was prepared in October, in close consultation with the two governments. It identified seven major work streams. In summary they are:

  1. Close consultation with the people of Bougainville and PNG, and the two governments, so that they can participate in decision making about the referendum;
  2. Weapons disposal assessment (important in terms of setting the referendum date, as well as for other reasons I will mention later in this statement);
  3. Determining the criteria for enrolling non-resident Bougainvilleans on the voters roll for the referendum;
  4. Good governance assessment (also important for setting the date, as well as for other reasons);
  5. Determining the referendum question or questions;
  6. Establishing the independent agency to conduct the referendum, and providing the funding needed to conduct the referendum;
  7. Review of the constitutional provisions for the conduct of the referendum.

The report recommended setting up a joint secretariat of the two governments to oversee the implementation of those seven work-streams. No decision has yet been made on that issue.

At the recent meeting of the JSB in Arawa on 13 March, the two governments noted the report, and agreed to meet to decide on the issues of the date of the referendum, and the charter for the independent agency to conduct the referendum, as well as other milestones for the conduct of the referendum.

My Government has also moved to establish our own structures to oversee preparations for the referendum. In 2014, we established an ABG Ministeral committee to provide oversight, direction and monitoring of referendum preparations. It will need to liaise closely with the counterpart committee established by the National Parliament.

Then in January 2015 the BEC approved the establishing of the ABG Office Bougainville Referendum  to oversee referendum preparations on behalf of the ABG. Its mandate is to:

  • Coordinate and implement ABG policy on the referendum;
  • Liaise with the National Government and development partners on referendum preparations;
  • Coordinate awareness-raising and communications for the referendum, and provide support to referendum sub-committees as may be established;
  • Develop and manage on behalf of the President and BEC, a work plan for the referendum arrangements;
  • Identify resource needs and report to BEC.

It is now vital that this new Office receives the support, especially resources and staff, necessary to carry out its import work. In the very near future, it must begin work on:

  • Consulting Bougainvilleans on options for the question or questions to be asked in the referendum, inclusive of independence;
  • Defining options on the links non-resident persons will need to be regarded as Bougainvilleans for the purposes of enrolment for voting in the referendum;
  • Reviewing the Rules for the Conduct of the Referendum agreed in 2001 and incorporated into the Organic Law on Peace-building in Bougainville, and in doing so taking account of experience in the conduct of the three ABG general elections (2005, 2010 and 2015) and the 2008 Presidential by-election;
  • Developing and implementing a general awareness campaign for Bougainvilleans on the process of, preparations for and issues in the referendum

Mr. Speaker:

There is considerable international community interest in the preparations necessary for the referendum. In particular, the United Nations was requested last year to undertake a scoping visit to assess what its roles might be in supporting both the 2015 elections, and the referendum. The UN scoping team visited Port Moresby and Bougainville in February, and has recently provided a report to both governments, highlighting important issues about the work required, and proposing important roles that the UN can play in preparations for and conduct of the referendum.

Mr. Speaker:

I know all Bougainvilleans will support and welcome the close involvement of the UN as we continue to implement the Peace Agreement provisions on the referendum.

So, Mr. Speaker:

While there is much to be done, important steps have been made. Much more will need to be done by the ABG after the election. Indeed, it is no exaggeration to say that negotiations about referendum preparations will be one of the most important responsibilities of the third ABG, taking office in June 2015.

Mr. Speaker,

Those responsibilities will include making strenuous efforts to continue achieving progress in relation to both weapons disposal and good governance. Progress on those matters is important in at least four distinct but also closely connected ways.

First, they are important in setting the date for the referendum, between 2015 and 2020. Disagreement between the governments on our weapons disposal status or good governance could push the date back towards mid-2020. But of course, such disagreement cannot delay the referendum after mid-2020.

Second, weapons and good governance will be very important in determining whether the referendum is “free and fair”. Under the Peace Agreement, we have all committed to a free and fair process. There is provision for international observers to be involved. If weapons are available and in use, and if the ABG does not provide good governance, for example in the form of law and order, there are serious risks that observers will decide the referendum is not free and fair.

Third, when the National Parliament comes to make its decision on implementation of the referendum outcome, it can decide what issues it takes into account in making its decision. If there are serious weapons disposal and good governance issues, they will be free to argue that it will not be safe for the people of Bougainville if independence is considered.

Fourth, and finally, the international community will be watching closely. When Australian Foreign Minister, Alexander Downer, persuaded the Bougainville leaders in late 2000 to make a compromise on their position that the referendum vote be binding on the National Government, he indicated that the international community would support implementation of a free and fair referendum with a clear outcome. The truth is that we may need to rely on international community support at that time. So we Bougainvilleans need to make sure issues about weapons and good governance result in loss of international community support.

Mr. Speaker:

There is clearly still much to be done to prepare for the referendum. But an important start on make preparations for this momentous decision-making process has been made in the five years this House has been in office.

All of us here look forward to seeing the steps being made by the new, 3rd House, President, and BEC, taking office in June, as they take the major next steps towards the conduct of the referendum.

I thank all those who have contributed to the progress we have made so far.

The referendum will involve the single most important joint and democratic decision ever made by Bougainvilleans.

I call on all members of this House and all Bougainvilleans, whether resident in Bougainville or living elsewhere, to work together to ensure that the referendum is a complete success, and provides a secure foundation for the future of Bougainville.

 

Thank you, Mr. Speaker.