Jun 15 2023

Bougainville News : Today we celebrate 18th AROB Day Anniversary June 15 2005 to 2023

Where were you at the beginning of this era on this Day 15 June 2005.

I was at Hahela YC sports oval. This was the outdoors venue where the inauguration of the first ABG took place.

It is where the President of ABG (Joseph C Kabui) took his oaths as the first President of the Autonomous Region of Bougainville within PNG.

It is also where the first 40 members of the First Bougainville House of Representatives took their oaths of Office as Members.

The swearing-in was administered by and before His Honour the Deputy Chief Justice, late Sir Mari Kapi.

This Day was graced by a full crowd of women, men, including schoolchildren that filled the whole oval. A colorful loop of young students holding a large Bougainville flag end to bed took up a large space of the oval.

At the head of the ceremonial pavilion were VIPs that included head of UNOMB, heads of missions in PNG, a Fijian Government contingent led by their Foreign Minister at the time, and heads and representatives of churches, chiefs, elders, traditional spiritual leaders and women leaders.

The significance of this occasion was a “rebirth”of Bougainville after a devastating conflict in which many lives were lost on all sides of the conflict but mostly upwards of fifteen thousand lives of Bougainvilleans.

The thoughts and significance that today marked the end of what seemed a debilitating war and the beginning today that would usher in peace in the land was not lost to many Bougainvilleans at home and abroad.

The principal guest who made the keynote response to the inaugural Address by President Kabui was the Rt Hon Prime Minister of PNG, Sir Michael Somare.

At the end of the ceremony the Prime Minister, the President, all MHRs, VIPs and the Clerk of the House were ‘ushered’ into vehicles on a short drive to the Parliament, Bougainville’s first House of Representatives.

The first business of the House was the appointment of Speaker of the House. Hon Nick Peniai was duly elected and took his oath as the first Speaker of the House.

Two main Addresses followed, the first in the Bougainville House of Representatives by the Rt Hon Sir Michael Somare and by Hon Joseph C Kabui.

On this day was born the Autonomous Region of Bougainville, the ABG and Bougainville’s Parliament, the House of Representatives.

So today isn’t just another day. It is the eighteenth anniversary of AROB eighteen years on. Hon Ishmael Toroama MHR is the fifth President of ABG and head of the Executive. The Fourth Bougainville House of Representatives is celebrating its fourth anniversary with four successful, successive peaceful elections since 2005 with its fifth Speaker as head of the Legislature on this eighteenth anniversary.

Thanking all Bougainvilleans across the length and breath of the main Islands and out on the Atolls.

Thank you PNG National Government for honouring the BPA in delivering Autonomy and maintaining a continuing interest in the development and aspirations of Bougainville.

A long and winding, challenging and interesting, road is ahead and beyond. It isn’t awaiting us. We have to make the right efforts guided by faith, honesty, trust and forebearance, led by leaders that must not only be beyond reproach but seen to be so in a world that is still violent, full of greed and aggrandizement.

Happy AROB Day Anniversary

Sep 15 2019

Bougainville Referendum News : As we celebrate Independence Day today for 2019, Simon Pentanu MHR GCL reflects on the upcoming referendum and the future political path of the Autonomous Region of #Bougainville.

” As we celebrate Independence Day for 2019, I want to reflect on the upcoming referendum and the future political path of the Autonomous Region of Bougainville.

As a Bougainvillean and a Papua New Guinean, I am less concerned about Greater Autonomy, Independence (or the ‘Third Choice’ whatever it might be). The simple fact is that two options are already guaranteed, and it is now for the people to make their choice.

My real concern is more about our insouciance and disregard for good governance that we must sternly guard against, whatever the political outcome of referendum will be. For, good governance is one of the major considerations that must be ticked off or crossed when it comes to ratification of the vote.

Here I say, take heed the soothsayers say, or forever hold your breath.”

Hon. Simon Pentanu MHR GCL : Speaker
Bougainville House of Representatives

Picture Above : Prime Minister, JAMES MARAPE and ABG President, DR. JOHN MOMIS signed the joint resolution September 12 at the Presidential villa Buka in front of journalists and the Ministers and members from both the ABG and the National Government. See Part 2 for full details or Download Document Here

12092019_JSB_Resolution

Whatever the choice is, and we know that Independence is the greater expectation of most Bougainvilleans, we have to make it work. This is the essence of my message today. Let us not tire of talking about good governance, honest and transparent leadership, common sense, and not being above or beyond reproach. Let us not forget the foundation stones and the building blocks of good government, regardless of what form that Government takes.

Adherence to good governance must be the message delivered in unison by the people to their representatives in the House of Representatives and to Leaders in Government. All Leaders, whether at the national, provincial or community government level, must be held to account.

Without regard for good governance the writing is on the wall. We know this from the countless examples of developing countries that have been turned into pariah states by their own Leaders in power.

Let us avoid the pitfalls of bad governance by making a conscious and conscientious choice for good governance without making compromises, taking short cuts or looking for quick fixes at the leadership level.

Nothing is more certain than the dire consequences that befall a people whose leaders turn a blind eye, a deaf ear and who play mute to the evils of corruption.

Conversely, nothing is more certain than the successes and gross national happiness and contentment that follows when elected leaders live up to the oaths and loyalties they swear by and the responsibilities they promise to live up to in office, leading the people from the front.

We can grab and take the opportunities to heart or we can squat and squander them. It is my sincere hope this Independence Day, that our leaders take the former rather than the latter path.

Hon. Simon Pentanu MHR GCL
Speaker
Bougainville House of Representatives

Part 2 Editors note

Congratulations to Simon Pentanu, who has been named on the 2019 Independence Day Anniversary Honours List. Simon Pentanu

Mr. Pentanu will be awarded the Grand Companion of the Order of Logohu (GCL) Conerred with the title of “Chief” for distinguished public service in the senior roles of Clerk of the National Parliament, Chief Ombudsman, and currently as Speaker of the House of Representatives of the Autonomous Region of Bougainville.

Part 3

Prime Minister, JAMES MARAPE and ABG President, DR. JOHN MOMIS signed the joint resolution in the afternoon at the Presidential villa in front of journalists and the Ministers and members from both the ABG and the National Government.

The first Agenda was concerning the request by the BRC to extend the Referendum date by six weeks from October 12th Polling to November 23rd Polling.

The BRC had sought for additional time for the referendum roll to be updated so that the outcome is credible and has integrity.

Agenda two was on weapons disposal, after the joint Weapons disposal secretariat briefed the JSB on the progress of the Me’ekamui Weapons disposal program, the JSB resolved and noted that the weapons disposal work must continue, and also touched on the National Reconciliation ceremony that must be held between the National Government and the ABG and also between the veterans.

Agenda three was on the Post Referendum Transition of which many discussions have been made and also looking at the legal issues going forward.

The JSB noted the progress made so far and resolved for the establishment of a Joint Ministerial Task Force on Post Referendum.

Approved for the Post Referendum Task Force to identify facilitators/moderators to assist in the Post referendum negotiation period.

And there must be one national moderator and one external moderator.

The fourth Agenda looked at the Restoration and Development Grants in which both governments have been at loggerheads over the calculations for the RDG.

The JSB resolved to accept the calculations made by an independent expert engaged by the UNDP and that officers work on these calculations and settle those outstanding through the RDG and SIF programs.

The JSB also resolved to approve a new arrangement for the National Government to provide 100 Million annually to the ABG for the next ten years starting next year.

Jun 22 2019

Bougainville News Alerts this week : Australian Foreign Minister Marise Payne visits Bougainville ahead of independence referendum and amid fears #Bougainville independence will open Pacific door for China

“I don’t think the exercise of a democratic process in one of our nearest neighbours would be described as a huge problem for Australia.

The referendum is part of a peace agreement that has been under way for some time.

The important things that Australia is focused on is not forming a view one way or the other on the outcome of a referendum in another country, but importantly supporting that wherever we can to ensure a credible, and a peaceful and an inclusive process.”

Australia will work to ensure the integrity of the Bougainville referendum later this year, and won’t cast judgment on the result, Foreign Minister Marise Payne says.

Hear ABC Radio Coverage

Australian Foreign Affairs Minister Marise Payne this week visited Bougainville for a few hours amid fears an upcoming independence vote there could undermine regional stability and provide an opening for China to establish a strategic foothold in what could become the Pacific’s newest nation state.

Report from The Australian

The visit was the first by an Australian minister since a bungled 2015 attempt to open an Australian consulate led the PNG government to slap a ban on Australian officials travelling to the autonomous region.

Papua New Guinea, which fought a decade-long civil war with Bougainville rebels ending in the late 90s, is trying to convince

PNG Minister for Bougainville Affairs, Sir Puka Temu, said Bougainville’s people needed to understand what “cutting the umbilical cord from Papua New Guinea” would mean.

“The revenue for Bougainville is only 20 million kina ($8.6m) per year,” Sir Puka said.

“They will need, according to international studies, at least 900 million kina ($390m) a year to rebuild Bougainville as an independent state.” He said independence would also mean “Papua New Guinea will not be able to be politically responsible for an independent Bougainville state”.

Bougainville’s people will vote on October 17 to either become an independent state or to have greater autonomy within PNG.

There is a widespread expectation that Bougainvilleans will vote in favour of independence in a result that would then have to be ratified by the PNG parliament, where it could face opposition from MPs who fear other provinces could follow.

PNG Prime Minister James Marape has said PNG was “stronger with Bougainville than without” but it would listen to the people of Bougainville “and then consult on options for the future”.

Lowy Institute Pacific program director Jonathan Pryke said the referendum outcome would have strategic implications “thanks to the active presence of China throughout PNG and the broader Pacific”. “Given the new strategic landscape, and not to mention the huge reserves left in Panguna (copper) mine, I would expect an independent Bougainville would have a number of potential international suitors to help them with their financial challenges,” Mr Pryke said.

Nana Buba from New Dawn Reports on visit to Bougainville

The visiting Australian Foreign Minister, Marise Payne this week met with the Bougainville women Peace builders at the Nazareth Rehabilitation centre, Chabai on the northern tip of mainland Bougainville.

She was very keen to know the work of these peace builders who work in their communities working tirelessly to end violence against women and children and also carry awareness on the upcoming referendum.

Presenters assisted Sister Loraine in presenting what the women peace builders have been doing silently to make the place free from violence and human right abuses in the communities.

The woman who made several comments is the former ABG member representing the women of South Bougainville, Rose Pihei who stressed the need to address traumatized people and also address mental health issues in our communities.

Mrs Pihie said that if these post conflict problems are not addressed Bougainville will be facing a big problem with these people in the future.

She said that the work Sr Loraine is doing must be supported by donor partners. The women had representatives that came all the way from North,Central and South Bougainville for this meeting.

The team was fully informed on the work of these women peace builders at this meeting.

The Bougainville Affairs Minister, DR. Puka Temu this week acknowledged the important tripartite relationship that the three countries, Australia, New Zealand and Papua New Guinea have developed over the years.

Minister Temu made these remarks during lunch at the Reasons Guest house in Buka town . He said that this significant relationship between our three countries have grown over the years and continue strengthen our friendship.

Dr Temu also acknowledged the members of the Regional Peace Mission contributing countries like Solomon Islands Vanuatu and FIJI for their continued support for peace throughout the Pacific. He said as the Minister for Bougainville Affairs Minister it was only proper to thank these countries for their continued support especially assisting PNG on the Bougainville issue.

Dr Temu said that PNG will continue to work with Australia and New Zealand to complete the Bougainville Peace Agreement with the conduct of the referendum in October and also manage the transitional period after the vote is taken.

The Minister for Bougainville Affairs, SIR PUKA TEMU has told the visiting Australian and New Zealand delegation that since the change of the government two weeks ago, Prime Minister, JAMES MARAPE has announced that the PNG Government is 100 percent behind the implementation of the Bougainville Peace Agreement.

Jul 1 2018

Bougainville News 2 of 3 coverage of #JSB meeting Arawa June 29 : Read or Download President Momis’s speech at opening Joint Supervisory Body meeting

” Prime Minister I have no doubt that you are serious in the public assurances that you have been giving about honouring every last word in the Peace Agreement, and ensuring that the referendum will be held. But of the money required does not flow, and if other things I have mentioned do not happen quickly, then not only will we miss the target date for referendum in 2019, but we will be struggling to achieve a referendum by the last possible date-June 2020.

There is a slowly emerging risk of real frustration amongst Bougainvilleans about the lack of progress both with autonomy, and with the referendum. The time for action on the referendum is now. Prime Minister, I look forward to a productive meeting with you and your colleagues.”

President Momis opening speech June 29 Arawa Download HERE

President Momis Opening address JOINT SUPERVISORY BODY ARAWA 290618

Prime Minister, Ministers accompanying the Prime Minister and members of the ABG, members of the Diplomatic Corps, Officers of the national government and the ABG, and other observers:

I am pleased to be at this meeting of the JSB for 2018. As always, there are important matters for us to discuss at this JSB meeting. At the outset, I ask that we all remind ourselves of the important roles that the peace agreement and the National Constitution give to the JSB.

In fact, we should all do well to recall that it is the National Constitution that established the JSB.

It is a constitutional body, with important roles given to it by explicit words in the Constitution. Those roles include oversight of the Implementation of the whole of the Bougainville Peace Agreement. That means oversight of all three pillars of that agreement – autonomy, the referendum and weapons disposal. The second main role of the JSB involves providing a forum for consultation between the two Governments and their agencies. The third role is in relation to conflict resolution between the two Governments.

It is timely to remind ourselves of these roles of the JSB, because in this meeting of the JSB there are items on the agenda related to implementation of all three pillars of the Peace Agreement. And the ABG is seeking to consult the National Government about many of these matters. But for some of the matters, we are coming to the JSB with the aim of settling disputes.

Here I refer to our concern, once again, about the calculation of the Restoration and Development Grant –the RDG. While we reached a compromise in the December 2017 JSB meeting, we did not resolve issues about calculation of the RDG going forward. On our calculations, according to the formula for the RDG set out in the Organic Law on Peace- building, we should be receiving about K70 million per year in RDG-not the K15 million that has been budgeted, but not fully paid in several recent years.

This year again the National Government proposes to pay K15 million, we have not yet seen a single toea of RDG so far, six months into the year. I hope, Prime Minister, that we will reach agreement here on what the RDG payments should be going forward, and that in 2019 we will see payment at the correct level, of more than K70 million.

While talking about ABG finances, I must raise the issue of the extreme budget crisis now faced by the ABG.I realise that the National Government faces its own budget crisis.But the lack of funds being received by the ABG is leading to a desperate situation for us. We simply do not have the money to do anything. We are not even receiving the amount of recurrent grants needed to meet salary costs, and not enough for our public service to do much at all. We have received no RDG. Most of the Police grant has not been paid. Our share of the National Government taxes collected in Bougainville is in arrears. Prime Minister I ask you and your Ministers for Treasury and Finance to do all you can to ease our terrible financial position.

Prime minister, I turn to the referendum, and in particular to the work needed to ensure that the referendum is held before the end of five year window within which the peace agreement and the national constitution say it must be held. That window ends less two than years away – in mid – June 2020.

Prime Minister, all Bougainvilleans have been heartened by the assurances you have recently given in public statements that you and your government will honour the peace agreement in full. On several occasions now you have stated that the referendum will be held – and held on the target date in June 2019.

But the fact is that a huge amount needs to be done, and done very soon, if there is to be any hope at all that the referendum will be held, either in 2019, or before the end of that five year window in mid-June 2020.

Amongst other things, the following are some of most urgent things that must be done.

First, the proposed chair of the Bougainville Referendum Commission (the BRC), the Honourable Bertie Ahern, must accept the appointment, and his appointment must be notified in the National Gazette and the Bougainville Gazette. Only then can the full BRC convene, and only then can the BRC appoint the chief Referendum officer. Only then can the chief Referendum officer appoint the other staff of the BRC secretariat. Prime Minister, I ask that your officers take urgent action to confirm the appointment of the chair of the BRC by the necessary notice in the National Gazette.

Second, Prime Minister we need the appointment of the two National Government appointees to the BRC. While the BRC can meet once the chair is appointed, I would be worried if were to meet without national government representation. That will happen, I’m afraid, if we do not hear of the National Government appointees.

Third, we must do everything possible to protect the constitutional independence of the BRC, something which is guaranteed by the Organic law on peace-building in Bougainville, and charter establishing the Constitution. The independence of the BRC is essential if the referendum process is to have integrity. The Referendum can only be free and fair if the BRC has full independence from Government.

In relation to protection of independence Iam concerned about a proposal emerging from the JTT for the two chief secretaries to co-chair an intergovernmental committee to provide guidance to the BRC. If the BRC is to be independent it cannot be subject to guidance from the chief secretaries. On the other hand, if such a committee plays a role in ensuring liaison between governments and the BRC, that would be acceptable. I hope that we can reach agreement on arrangements that recognise the independence of the BRC.

Third- Prime Minister, the BRC is in desperate need of the earliest possible flow of funding. If the BRC were to have had much real chance of organising the referendum by the target date of mid-June 2019,the enrolment of voters should have begun in April, But in the absence of the funding expected from the National Government, the BRC has so far been able to do nothing to start the enrolment process. The BRC needs at least K5 OR K6million to undertake the major enrolment process required.

Prime Minister, I am sure that you will agree with me that it is essential that the roll of voters for this referendum should be of much higher standard than we have become used to in PNG National elections. We cannot have thousands of people turned away because their names cannot be found on the rolls. A truly free and fair election will depend on an accurate roll providing all voters with the right to vote. I am pleased to hear that the BRC is proposing to work with the ward recorders that are part of the ABG’s new community government system, with the goal of having a grass roots check on the accuracy of the rolls. All these efforts to get a real accurate roll will be costly- but it is a cost well worth incurring.

Prime Minister, please make the flow of adequate funding to the BRC a top funding priority in the next couple of weeks.

Fourth, Prime Minister, it is essential that at this meeting of the JSB that we BOTH agree the question to be asked in the referendum, and agree to the criteria of enrolment of non-resident Bougainvileans. Both of these issues are essential for immediate agreement if the referendum preparation are to go ahead. Without the question being agreed, we can not have adequate referendum awareness- because awareness must be directed to explaining carefully and in simple language the issue that will be decided in the referendum. As for the criteria for enrolment, the BRC will not be able to undertake enrolment of non-resident Bougainvilleans without agreement on those criteria.

Fifth, Prime Minister, I am concerned about security for the referendum.There are two major issues that I must mention here. One concerns weapons disposal. Much work has been done, jointly between ABG’s Department of Peace Agreement Implementation and your National coordination office of Bougainville Affairs, to develop a four phase program for disposal of remaining weapons.

A joint weapons disposal secretariat has been established. The former BRA and BRF and the Me’ekamui factions have agreed to join this new disposal process. But without funding, this disposal process cannot proceed. I ask that the necessary funding be released.

The second issue about security concerns the role of Police. I am afraid that the Bougainville Police service still has very low levels of capacity. As a result, I am concerned that the Bougainville Police should be the main factor in security arrangements. Experience elsewhere in the world shows that good security can be vital.

Prime Minister, I want us to consider here at this JSB the possibility of an invitation being given to the United Nations to provide an International security force for the referendum, perhaps one that could work closely with the Bougainville Police Service.

Prime Minister I have no doubt that you are serious in the public assurances that you have been giving about honouring every last word in the Peace Agreement, and ensuring that the referendum will be held. But of the money required does not flow, and if other things I have mentioned do not happen quickly, then not only will we miss the target date for referendum in 2019, but we will be struggling to achieve a referendum by the last possible date-June 2020.

I understand your government has other pressing priorities with APEC, and the complex current situation in the Highlands. I understand too that your budgetary constraints are grave. But we must also remember that the Peace Agreement ended a terrible conflict. There is a slowly emerging risk of real frustration amongst Bougainvilleans about the lack of progress both with autonomy, and with the referendum. The time for action on the referendum is now. Prime Minister, I look forward to a productive meeting with you and your colleagues.

Thank you.

May 2 2017

Bougainville #Mining News #PNG : ABG lifts Mining and Exploration Moratorium on #Bougainville.

The Autonomous Bougainville Government has made an historic announcement in the lifting of the Mining and Exploration Moratorium on Bougainville.

ABG President Chief Dr John Momis made the announcement on Friday April, 28 2017 after the Bougainville Executive Council carefully considered the implications of developing the capacity of the government to manage exploration applications and the needs of the people of Bougainville.

This allows for applications for the areas of Tore, Isina and Jaba only and does not include Panguna, places which have large ore deposits.

Since the development of the Panguna Mine more than 40 years ago the rest of Bougainville has been covered by the moratorium until the announcement was made.

In 2006 the ABG requested the National Government for the Mining, Oil and Gas powers and functions to be drawn down as the priority powers in its notice to the national government.

In 2008 both the ABG and the National Government signed the Alotau MOU that established the road map for the transfer of the Mining, Oil and Gas powers and functions from the National Government to the ABG.

Although the process was slow the ABG enacted its own Mining Act in 2015 and this paved the way for the ABG to regulate its own mining sector.

“The Bougainville Constitution and the Bougainville Mining Act 2015 clearly define the people as the owner of all the mineral found on all the land in Bougainville,” President Momis said.

“It is significantly important that the people’s consent must be given before any mine is developed and the Mining Act,” Momis said.

Momis also added that the Bougainville Mining Act gives the ABG the opportunity to preserve and reserve certain areas in Bougainville from mineral exploration and mining to strategically harvest mineral resources for the current and future generations.

The Bougainville Executive Council has the final authority to grant mining licenses in Bougainville and in this way it will scrutinise every would be investor well to ensure only genuine investors invest in Bougainville before a license is granted.

“We have learnt our lessons from the Panguna experience and now we have the opportunity to do a better job this time,” President Momis said.

“On behalf of the people of Bougainville I invite and welcome applications from prospective applicants to invest in our mining sector; Bougainville is open for business and I look forward to the development of long term economic partnerships to allow Bougainville to fulfil the economic potential she rightly deserves,” he added.

The Bougainville Mining Registrar will start accepting applications from 10am Bougainville Standard Time, Tuesday 9 May 2017.

Mar 17 2017

Bougainville Government News : First 100 days Achievements of Chief Secretary Joseph Nobetau

” The challenges that we face are immense. As Chief Secretary I am honoured to be able to serve Government and commit to maintaining the full degree of energy, integrity and direction required to help the Government achieve its objectives.

Whilst much has already been done, it is incumbent on all public servants, both senior and junior, to ensure we deliver the public services that all Bougainvilleans so richly deserve.

Challenges and Upcoming Priorities

Despite some achievements it is clear that much more needs to be done. Key priorities include:

Enhancing engagement to ensure a more joined up approach to Government service delivery;
Ensuring effective coordination of donor support so that we can maximize the value of existing international development assistance whilst harnessing new and emerging development opportunities;
Ensuring effective community engagement so that our people understand what it is that the Government is doing for them;
Ensuring that corporate plans are adhered to and remain reflective of Government objectives;
Ensuring that the BEC remains well supported and that submissions reflect whole-of-Government considerations and priorities;
Continuing work to undertake urban and town planning activities to enhance infrastructure and housing to address need;
Getting the new integrated financial management system in place to deliver more effective, transparent and accountable financial management practices across Government;
Continued work on the draw-down of powers to support autonomy;
Convening the Revenue and Taxation Summit; and
Ensuring that the Bougainville Referendum Commission is fully established and that important stakeholder and community engagement work commences.

Joseph Nobetau Chief Secretary ABG

Download a PDF Copy of this report :

Media_Statement_-_Achievements_Joseph_Nobetau_Chief_Secretary_2017

Following my appointment to the Office of Chief Secretary on 17 October 2017, I have been engaged in a process of reform aimed at enhancing the capacity of the Department of President and the BEC and the broader public service.

As Chief Secretary I have engaged extensively with key stakeholders including Ministers, Secretaries, donors, the private sector and civil society. Through this work I have gained valuable insight into the workings of the public sector and the need for change and reform.

The purpose of this statement is to provide the general public with an update of the work that has been undertaken since my appointment, outline the challenges that I see moving forward and to canvass the priorities that are ahead.

Consultations

Ministers

Since commencing as Chief Secretary I have been able to meet with all Ministers. Through these discussions I have gained valuable insight into key ministerial priorities which has in turn informed my work with portfolio Secretaries and keystake holders. These discussions have been invaluable in informing my Department’s broader reform agenda and have assisted with some critical organisational change decisions.

Secretaries

As Chief Secretary I see it as an important part of my role to provide leadership and guidance to Secretaries. Since commencing as Chief Secretary I have convened Senior Management Committee meetings and met one on one with all Secretaries.

In my discussions I have emphasised the President’s key messages around organisational capability and the need to deliver meaningful outcomes with respect to service delivery and public service reform. These discussions have been positive, and whilst there will continue to be some challenges I will continue to ensure that all public servants remain mindful of their need to be accountable and responsive to Government and the people that we serve.

Parliamentary Services

As Chief Secretary I consider it essential that clear lines of communication be in place with the Office of Parliamentary Services. To that end, I have developed a strong working relationship with the Speaker of Parliament with a view to ensuring better links between the public service, the BEC and parliament.

This work is already showing dividends through more effective coordination of public service policy development and programme delivery and parliamentary business.

Community Government

I have been working with the Secretary for Community Government to make changes to Executive Manager arrangements to ensure more responsive community government across Districts. In that context, some immediate changes have already been made to realign resources so that we can better meet the needs of local communities. I will continue to work with the Secretary to ensure that resources at the District level are appropriate so as to enable effective community engagement and service delivery.

International Engagement

International engagement is a critical part of the Chief Secretary role. With significant donor representation in Buka I have reached out to key bilateral and multilateral partners to discuss how donor activities support the work of the ABG and to explore opportunities for more effective engagement and aid coordination. This has included my work as chair of the Australian and New Zealand funded GIF (Governance Implementation Fund) and work with the Australian Funded PNG Governance Facility.

Advisory Support and Donor Engagement

The ABG continues to receive support from a range of donors in relation to the key areas of governance, peace building, health, transport, law and justice and election support. As Chief Secretary I acknowledge the value of this support with a number of key advisers providing advice to my office and across government to progress important initiatives in areas including: recruitment, legal advice and support, draw down of powers, election preparations, media and communication, strategic and corporate planning, economic development, revenue and taxation, urban planning, monitoring and evaluation, financial management and strategic engagement. While in the longer term it is my hope that the ABG will develop the internal capacity to manage these important issues independent of donor support, the support we currently receive has been a critical part of our recent progress.

Aid Coordination

In terms of aid coordination, I continue to engage with key donors regarding how we can target support to get the best possible outcomes. I am of the view that any support must be clearly aligned with ABG priorities and be based on ensuring meaningful capacity building where ABG officers are able to learn from the support provided and manage issues independently in the future. A key future priority will be developing an effective aid coordination mechanism within my Department to ensure the most efficient use of donor support.

Bilateral and Multilateral Engagement

In February 2017 my office coordinated briefing for the visit by NZ Minister for Foreign Affairs the Hon. Murray McCully. The meeting provided a valuable opportunity to talk with a key development partner and friend, with the Foreign Minister committing to ongoing support to the ABG in the lead up to the referendum and beyond.

Vice President Masono hosted a visit by a delegation from the European Union which comprised of the EU Ambassador to PNG, the French Ambassador to PNG and senior officials on 20 February 2017. The visit provided a valuable opportunity to reinforce the ABG’s development priorities and for delegation members to see firsthand some of the challenges that face our young and emerging democracy.

Feedback from the visit was positive, with the EU Ambassador indicating a very strong desire to provide support to Bougainville in key areas including infrastructure, water sanitation and vocational education (amongst others). These are consistent with priorities identified through the PNG-EU dialogue and present opportunities for the ABG to partner with the EU in a number of short to medium term high impact areas. It is hoped that in the near future a delegation led by the Vice President will travel to Port Moresby to meet with senior National Government Officials and the EU Ambassador to explore how this commitment for support can be translated into meaningful action.

Community Engagement

At the community level I have engaged widely with non-Government and volunteer organisations and the education sector. I consider these stakeholders to be essential from a social development perspective.

In December I was honoured to be asked to deliver the keynote address at the Hutjena High School graduation. This was an excellent opportunity for me to deliver a key message on leadership and the value of quality education. My message was that as emerging leaders high school graduates are well placed to make a long term contribution to our economic, social and development goals.

In February I was honoured to speak at the Public Service Dedication Service. I used this as an opportunity to reinforce the need for a responsive public service, noting that planning is the cornerstone of success.

I continue to work with local mainline churches to progress aerial surveys of available land to enhance housing and community infrastructure. This work has included undertaking aerial surveys in Buka, Arawa and Buin to aid town planning, including the potential development of a teachers college in Buin and new housing development in Arawa and Buka.

Organisational Reform

Communication

Communication is the cornerstone of any well-functioning public service. As Chief Secretary my primary aim has been to enhance communication within Government and to our key stakeholders. I have achieved this by chairing Senior Management Committee meetings, engaging with Secretaries and senior leaders, connecting with Districts through radio programmes and working with our civil society partners.

This process is now starting to show results. Department Heads are becoming more engaged and my office has increased visibility of key public sector initiatives.

Despite this it is clear that much more needs to be done, particularly with respect to communicating initiatives to the broader community. In that context I am working with officials in my Department, including my Deputy Secretary, to enhance our media and communication strategy. Whilst there has been some good work in this area many of the initiatives that we need to enhance community awareness have stalled. With the referendum fast approaching this is not acceptable, and a key future priority will be to enhance mechanisms to more effectively communicate with the people.

Corporate Planning

A functional public service requires well thought out policy measures that respond to the needs of Government. This has been lacking in the past. It is clear to me that the public service must be more accountable and responsive.

To that end I have commenced a process to put in place departmental corporate plans. I see these documents as being key to addressing issues of accountability and ministerial expectations. By having in place well thought out plans that reflect Government and ministerial priorities the public service has a means by which to measure whether or not we are meeting core goals and responsibilities. It is my hope that these plans will be finalised in the coming month and that they will in turn help inform the development of a longer term strategic development plan that maps our key development priorities over the years to come.

Recruitment Processes

Open and merit based recruitment processes are an essential part of ensuring that we attract the best and brightest to our public service ranks. I have therefore taken a very close interest in recent recruitment rounds with a view to ensuring that the public service fully adheres to the principles of fair, open and transparent recruitment.

Retrenchments

In late 2016, in consultation with the Secretary for Personnel Management and Administration, arrangements were made to retire a number of officers who had reached the mandatory retirement age. This process was undertaken to ensure compliance with the Public Service Management Act and as part of a broader strategy of ensuring the appropriate resourcing of the public service in the longer term.

Senior leaders Training

As Chief Secretary I have participated in the Australian Government funded senior leaders training which is being conducted by the Queensland University of Technology. I see this training as being a valuable tool through which principles of management can be reinforced, whilst providing an ongoing opportunity for senior leaders to work closely with Ministers.

Overarching MoU on Draw Down of Powers

Work is currently underway to enable the signing of the overarching MoU on the draw-down of powers by the ABG and National Government Public Service Ministers. This will be a critical enabling step in achieving further autonomy.

Financial Management and Elimination of Corruption

Financial Management Systems

In line with the President and Government’s expectations I am heavily focused on financial management and accountability. As Chief Secretary I am conscious of my role in ensuring whole-of-Government financial accountability and working with the Secretary for Finance to enhance our financial management accountability frameworks. In particular, I am actively engaged in work to fast track implementation of the new Integrated Financial Management System within the ABG.

Revenue and Taxation Summit

For some time now it has been proposed that the ABG convene a Revenue and Taxation Summit to review existing revenue raising capacity and to explore means through which the ABG can enhance and consolidate our revenue base.

I am pleased to advise that work in the area is now progressing and that I am working with the Secretary of Finance to convene the summit in the coming months. The summit will provide an opportunity for key stakeholders and subject matter experts to convene.

Referendum Preparations

Bougainville Referendum Commission

On the 24th of January 2017 I travelled to Port Moresby to co-sign the enabling agreement with my national Government counterpart to establish the Bougainville Referendum Commission. The Commission will be an essential mechanism through which the operational management of the referendum will be conducted, and importantly, through which stakeholder and community engagement can occur. I am currently working with the Secretaries for Peace Agreement Implementation and Law and Justice to ensure that all constitutional and organic law requirements have been met prior to the final charter establishing the Commission being signed off by the Governor-General.

Challenges and Upcoming Priorities

Despite some achievements it is clear that much more needs to be done. Key priorities include:

Enhancing engagement to ensure a more joined up approach to Government service delivery;
Ensuring effective coordination of donor support so that we can maximize the value of existing international development assistance whilst harnessing new and emerging development opportunities;
Ensuring effective community engagement so that our people understand what it is that the Government is doing for them;
Ensuring that corporate plans are adhered to and remain reflective of Government objectives;
Ensuring that the BEC remains well supported and that submissions reflect whole-of-Government considerations and priorities;
Continuing work to undertake urban and town planning activities to enhance infrastructure and housing to address need;
Getting the new integrated financial management system in place to deliver more effective, transparent and accountable financial management practices across Government;
Continued work on the draw-down of powers to support autonomy;
Convening the Revenue and Taxation Summit; and
Ensuring that the Bougainville Referendum Commission is fully established and that important stakeholder and community engagement work commences.

Joseph Nobetau

Mar 5 2016

Bougainville Tourism News: Some insights into tourism development in #Bougainville #PNG

“ABG recognises the largely untapped potential of tourism and is aware Bougainville has the natural attraction to lure adventure and niche’ travellers to its shores. But a lot needs to be done . Success does not come overnight. There are no short cuts and quick fixes in success in anything.

ABG’s financial resources and capacity which has to be shared with other areas and services seeking more urgent attention has not been easy. Clearly, this creates a lot of room and space for private enterprise driven participation in an industry that can be both profitable and enjoyable with the right advice and approach and sense of ownership.

Simon Pentanu was appointed Speaker of the Bougainville House of Representatives in June 2015.

Picture above Bungalows under progress at Uruna Bay Retreat

He comes from Pokpok Island where he has a home and a private retreat through which community participation and paid employment of women and youth amongst its Island communities is being promoted. He advocates“small, rural and local is beautiful” across Bougainville.

Bougainville’s natural beauty and attractions, including its vibrant culture like the rest of the country, can be best showcased with serious and deliberate government involvement. For now this is lacking and can be explained largely as a result of lack of resources, capacity and focus and due to the fact that since it was established the tourism office and responsibility has been moved from pillar to post. The settling in, focus, funding and seriousness has been amiss.

With so much potential staring at us in the face tourism in Bougainville it is time our political leaders and bureaucrats alike take the attitude that if tourism has to contribute to ABG’s coffers, then it should be well-intended and for good gain. A number of private operators that have been self-starters to promote tourism are the ones carrying the baton up front. The amount of promotion they are doing both out of joy in promoting the beauty of the Island and as a business is a good story.

The Autonomous Region today is, in many ways, at the stage in its attempts to promote tourism where PNG was about 30 years ago. Then, PNG started its budding attempts to promote the industry. It wasn’t something easy like a casual walk along the beach, a nearby bushwalk or a small hill climb. It was gradual with early forays into areas of unique attractions like for example driving into a village in Asaro to be greeted by its famous mystical Asaro mud men. There are other numerous examples such as the early cruises up the Sepik or the Baining Fire Dance and the Malagan mask phenomena in the New Guinea Islands. Along the way tourists started fitting their itineraries and visits to the annual calendar of many provincial Cultural Shows which have now become well renown and frequentedannual events. Bougainville can not only learn enormously from these early starts, including teething issues in the rest of PNG but can start to fit its own cultural events around some of the dates of these events.

The PNGTA is a vast repository of information and experience that Bougainville tourism authorities can tap into. The world has become small in an industry that has virtually encompassed countries globally and where there are no boundaries or barriers to movement or travel, barring religious and fanatical wars. PNGTA is benefitting enormously from its membership, attendance and participation in regional and global tourism events. It has also learnt that it does not have to copy or compete for the same markets like others but has created its own brand of adventure, cultural and niche’ attractions.

SEE Papua New Guinea Tourism Promotions Authority Website

Along the way PNGTA has learnt some hard, some sad but many useful lessons. The aches and pains have come with the successes and joys in seeing and industry grow into many niche’ attractions around its many tribal and ethnic cultures, languages, landscapes and seascapes. Bougainville stands to gain a lot from the road travelled and challenges met by PNGTA. Bougainville does not have to reinvent the wheel but we can improve the oiling and lubrication in our spokes and nuts and bolts to cruise forward with so much potential begging to be tapped.

SEE : Bougainville community support and vision puts Bougainville tourism on the world’s stage

Zhon Bosco Miriona, Managing Director of Bougainville Experience Tours for second time in the past few years was able to represent Bougainville on the world stage supported by Colin Cowell an International media and tourism consultant with over 25 years’ experience marketing Indigenous tourism

In March 2016 Zhon is representing Bougainville in Germany at ITB the worlds largest travel show VIEW ITB SITE Listing

Download the PNG ITB Promo press release

2016_03 PNG, unspoiled, wild paradise_ITB-Berlin-News-Preview-Editon

Top Photo Social media : Online tour bookings site , Facebook ,@YesBougainville on Twitter and Bougainville Tourism INSTAGRAM are playing an important role in Bougainville Experience Tours International Marketing

Second Photo Above : Developing partnerships with Wako Napusu Inbound operator Country Tour PNG and Asian operators above to bring in small groups for a 7 day Bougainville Tour Experience

PNGTA has also matured in keeping in check the pros and cons of tourist invasions, so to speak. It is a very sensible approach. The country does not necessarily want to promote tourism for arrivals en mass. This is a very important consideration in developing niche’ markets and keeping cultures genuinely intact. No one can ever completely preserve cultures in a test tube or a freezer but impact of outside influence and modernity can be managed with sensible long term policies and cooperation between government policy makers and independent state supported tourism bodies or corporations. In this regard, in terms of government support to PNGTA it has been a journey on bumpy roads, through humps, pot-holes and sometimes swaying bridges along the way. But the Association has been the richer and mature for the experience.

Bougainville can learn from all of the above. We can forge meaningful contacts, contracts and understanding for assistance in going forward in a planned and deliberate fashion with PNGTA.

It is heartening to see emerging self-start operators like Zhon Miriona Bosco from Bougainville Experience Tours and others in north and south Bougainville to establish links with PNGTA in brooding tourism in Bougainville. In time, there is no doubt other individual operators will emerge as Bougainville continues to open up to one of the cleanest and visible industries that can promote the Island.

ABG recognises the largely untapped potential of tourism and is aware Bougainville has the natural attraction to lure adventure and niche’ travellers to its shores. But a lot needs to be done over the years. Success does not come overnight. There are no short cuts and quick fixes in success in anything. ABG’s financial resources and capacity which has to be shared with other areas and services seeking more urgent attention has not been easy. Clearly, this creates a lot of room and space for private enterprise driven participation in an industry that can be both profitable and enjoyable with the right advice and approach and sense of ownership.

Clear, comprehensive, comprehendible mid to long-term policies is one way ABG can put tourism on a better footing. It is from this position that the Ministry, office and authority charged with responsibility to promote tourism in the Autonomous Region of Bougainville can develop deliberate and better long term view from the standing, stationary start is at now.

In the present Momis-Nisira Government the Minister for Economic Affairs Hon Fidelis Semoso MP has the will, the clout, the credentials and the leverage required to establish a meaningful and working contact with PNGTA. This would move the office from its dormant existence to at least some level headed planning view to where or how far Bougainville wants to take its tourism.

There are some aspects of office work that does not necessarily need huge funds but rather just thinking things through and mapping out. One such area concerns the risks and inhibitions to any opportunity to attracting and expanding tourism as an industry. First and foremost is the issue of law and order. This is a major concern in selling tourism in PNG but to its credit the PNGTA has spared no effort in putting better and localised perspective to this menace. Bougainville can certainly learn a thing or two from the arduous efforts PNGTA has made in this area. Landowner issues is another one when trekking and bird watching or just bushwalking is involved. Issues of benefits to a local community are matters that should attract attention to authorities. Advice and mentoring to willing starters in local areas is another area our officials in tourism office can help without much expenditure in resources or efforts.

The cost of travel to and within PNG is expensive. In more Bougainville it is even more expensive right across the board including airfares, local transport, accommodation, even food in lodges and motels. This should change over time and there is some evidence of this as the level of accommodation and variety of food in Buka and Arawa in more decent accommodation is improving.

Bougainville Office of Tourism Website

Developing an annual calendar around cultural events that are staged by communities for their own importance and purpose at their own time is something the office responsible for tourism in Buka can certainly work on. It is more reliable to plan this way because for communities these cultural events aren’t scheduled around tourist visits but have been a part of their life and cultural significance for years. On the part of tourist office staff this involves going out to the people to promote awareness over time. Instead of waiting for large funds the tourism office should go out to the people for which the cost shouldn’t be huge at all.

Some training and education for intending and existing tour operators and tour guides is a must so there is proper awareness on the do’s and don’ts of tourism. Again there is no need to reinvent the wheel. A working relationship can be established with PNGTA to help the tourism office in Bougainville. To this end there are also opportunities annually for the office of tourism and for private operators to attend tourist expositions hosted by PNGTA and by other Associations in the region.

It often begs the question, what does the office of tourism actually do in Bougainville? This is not a rhetorical question but a question that is being asked more and more. And rightly so. When you have good, attractive, usable and functional product to develop and promote and sell very well why is it hard to promote and sell. Everyone boasts about how Bougainville is beautiful, how we might become a Mecca for tourists looking for authentic pristine beauty or how relatively peaceful it is for tourist to find once they get here. BUT who is doing the hard yakka that’s got to be done?

The Minister responsible for tourism can be best served by the tourism office by providing good briefs on where we are at, where we want to be in the next four years based on the remaining years of the current Government. And, in addition, how best the Government and private operators can best consult each other. The experience of PNGTA in this regard would be quite valuable. The current Minister’s audacious, no nonsense and result oriented approach would bode well with the benefit of good, regular advice from those that are charged with developing the industry. As already mentioned, establishing meaningful links with PNGTA is bound to pay good, tangible dividends.

Bougainville has always learnt the hard way from its shortcomings. The courage and conviction of the people to succeed at all is always there and has always moved everybody on and forward. Tourism has the potential as a reliable and clean income earner and cash generator . We can do this through joint effort between government and private enterprise and through humbling ourselves to ask others that have travelled this road to help and guide us, specifically PNGTA. PNGTA is already a very recognisable product, a global brand name in the tourism industry.

Bougainville can prove its worth best through doing the hard work led by those tasked and paid in the office of tourism. Any other joint effort will come if the officers and authorities start pegging and advancing their work inside and outside the office. It is not enough to just trumpet out the all too familiar metaphor we are so used to chanting and hearing that “we can do it”.

Simon Pentanu pictured above learning international tourism marketing from Colin Cowell ” selling ” to 30 international buyers at a travel Expo in Port Moresby 2014. From left Zhon , Colin ,Simon and James Tanis.

“Bougainville is a land of simple, untouched pleasures; from our turquoise seas to lush rain forests.Experience our unique Bougainville Island, nature, culture, history and friendly people “

May 14 2015

Bougainville Political News: PM O’Neill wasn’t consulted over new Australian mission in Bougainville

Papua New Guinea Prime Minister Peter O’Neill has said he was not consulted by Canberra over plans to set up a diplomatic post in Buka ,Bougainville, a politically sensitive autonomous region expected to hold a referendum on independence.

Report from The Australian online VIEW HERE

The federal government announced on Tuesday it would open five new overseas missions as part of this year’s national budget, including one at Buka in Bougainville.

Australian diplomats will also be dispatched to Doha, Mongolia and Phuket as Australia seeks to expand its footprint and spruik trade and investment opportunities.

But Mr O’Neill said there had been no consultation and no agreement to establish a post in Bougainville.

“We were shocked to learn from the budget documents that Australia is planning on establishing a diplomatic post in Bougainville,” Mr O’Neill said on a visit to Sydney today.

“I want to say that there has been no consultation on this proposal and there is no agreement to proceed,” he added.

“As we respect the territorial integrity of others, we expect others to respect ours as well.” He said that the region was a historically and politically sensitive area for PNG, with Bougainville voters expected to elect authorities in June who will call for a referendum on independence from the country as part of a 2001 peace agreement.

Under the agreement, Bougainville was promised the right to hold an independence referendum between 2015 and 2020.

It followed an almost decade-long, bitter guerilla war beginning in 1988 that claimed 10,000 lives.

The separatist conflict was the bloodiest in the Pacific since World War II, and ended when the New Zealand government helped broker a truce signed by all factions in 1997.

An Autonomous Bougainville Government was established in June 2005 as part of a United Nations-sponsored process.

O’Neill said that PNG Foreign Minister Rimbink Pato was requesting more information about Australia’s proposal.

Pato Thursday described the plan as “outrageous” and “mischievous”.

“I’ve directed the acting secretary to call in the Australian high commissioner to explain the media accounts of this mischievous proposal to open a foreign mission on Bougainville,” Pato said in a statement, local media reported.

Foreign Minister Julie Bishop insisted the matter was discussed with the PNG government during a visit she made to the country last December.

“Australia has a significant and growing development program in the Autonomous Region of Bougainville, which is almost 50 per cent higher than 2012/13, and will continue to partner with the PNG government in supporting economic growth throughout PNG,” her spokeswoman said.

Bougainville is home to the giant Panguna copper deposit. A Panguna mine run by Bougainville Copper, a subsidiary of Australian-listed Rio Tinto, was forced to close in 1989 during the conflict.

Rio Tinto has said the PNG government as well as Bougainville’s leadership were supportive of restarting operations at what is one of the South Pacific’s largest mines for copper and gold.

May 7 2015

Bougainville Election News : Mekamui Tribal Government says Panguna 100 % behind Momis

“The Mekamui Tribal Government of Unity stands behind President Momis as we see him as the person who will lead us to freedom,”

“The Mekamui faction has also started the realignment process with the Autonomous Bougainville Government that will see reintegration and unity amongst all Bougainvilleans,”

Mekamui Defence Force hard man, Moses Pipiro declared that the people in Panguna area were 100 percent behind President Momis : Picture presenting shell money

Please note the following text supplied by ABG media

The Mekamui Tribal Government of Unity have pledged their support to incumbent ABG President Grand Chief Dr John Momis in this year’s ABG General Elections.

Mekamui Defence Force hard man, Moses Pipiro declared that the people in Panguna area were 100 percent behind President Momis’ bid to retain the ABG Presidency in a political rally held in the heart of the Panguna Township yesterday.

“The Mekamui Tribal Government of Unity stands behind President Momis as we see him as the person who will lead us to freedom,” Mr Pipiro said.

“The Mekamui faction has also started the realignment process with the Autonomous Bougainville Government that will see reintegration and unity amongst all Bougainvilleans,” he added.

“President Momis has been with us from the very start of our struggle for self-determination and he is the only one who knows where will go,” Mr Pipiro said.

Former ABG President James Tanis was also amongst a host of leaders from North, South and Central Bougainville who endorsed President Momis’s candidacy.(file picture )

Mr Tanis said that his decision not to stand for this year’s elections was to allow President Momis to complete the long journey that is Bougainville’s move to self-determination and should the people choose, total independence.

“President Momis’ is on the verge of completing what he started more than 40 years ago when he took up the fight for our people’s freedom,” Mr Tanis said.

“It would be unjust for me to usurp his leadership, as a respected elder statesman he has the necessary experience and will to lead us to independence,” Mr Tanis added.

“With Bougainville’s Referendum to be held within the term of the third and final Bougainville House of Representatives, as stipulated in the PNG Constitution, Bougainvilleans must know the type of leader they want to lead them and President Momis is that leader,” Tanis said.

In attendance at the rally were ABG President, Grand Chief Dr John Momis, Mekamui Government of Unity President, Philip Miriori, former Clerk of the National Parliament and Chief Ombudsman Simon Pentanu and various ABG Members from Central and South Bougainville.

Advertisement : Our current fundraiser for Bougainville education

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Apr 29 2015

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

“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.

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Tag Archives: Anthony Regan ANU