Bougainville Education News : PNG education powers and functions transfer to Bougainville Government

A Joint Implementation Committee meeting was held this week to oversee the education powers and functions transfer from the education department to the Autonomous Bougainville Government.

Whilst commending his current and former department staff, AGB and Australian Department of Foreign Affairs and Trade for their contributions in the functions transfer, he also expressed concern that the two day meeting is the first after two years and attributed the lack of meetings and consultations to funding and leadership challenges. However, he was pleased that the reports he received from were promising and that work on the transfer of powers and functions was continuing.

Picture from James Tanis from

Full Name of School: Nariana Elementary School: Metonasi Class B :Region: Nagovisi, Via Panguna ,Central Bougainville

He noted that while there are some powers and functions be transferred there are some that remain to be transferred due to lack of capacity in the ABG education system to absorb and implement successfully. The powers and functions that remain to be transferred are to do with Inspections, Curriculum and Examinations.

Dr Kombra pledged the department’s support to the ABG Department of Education and called on both entities to maintain regular communication.

“We need to be mindful of some national government policies being implemented by the department. One of them is the Tuition Fee Free Policy. The intent of this Policy is to ensure that every child attends school and remove the burden of school fees from parents.

I am aware that Bougainville charged parents fees this year which you can do but school fee is the main barrier that stops children from attending school.”

The Secretary also mentioned the need for the committee to establish a joint monitoring group to review and monitor the implementation of the powers and functions that have been transferred and the ones that remain.

The Bougainville education department registration policy, enrolment policy, regulation of pre-schools in Bougainville, transfer of remaining TSC powers and functions to Bougainville, and status of the Bougainville Technical College under the Bougainville Act 2013 and the PNG Education Act were discussed at the two day meeting.

Meanwhile, the newly appointed Secretary for Bougainville Education Department Dr Justin Kehatsin said that his department is working together with the Bougainville Education Minister in implementing the transferred powers and functions.

One of the challenges Dr Kehatsin mentioned is the mushrooming of early childhood centres in Bougainville. He added that a standard curriculum is needed that will work well for both Bougainville and PNG.

He reaffirmed Bougainville’s commitment to ensuring the transfers.

Note from Bougainville News : Hopefully now we can get some funding support for

Bougainville Education News : Bringing training and qualifications to Bougainville!


Some of the new members at Unity Public Library in Buka, Bougainville discovering their joy in reading. 

We are starting a training program in Bougainville! Working with the wonderful and ever supportive Deb from Tafe SA, we have been busy liaising back and forth by email talking about needs and logistics and all of the possibilities. After months of negotiating, the training proposal was written and submitted and we have been approved. Starting this week, our first round of students will begin their Certificate II in Customer Engagement with library electives.

Thanks to Lanies detour to Bougainville blog

The design of the qualification looked at selecting subjects that would be useful, interesting and relevant to securing employment here in Bougainville or indeed further afield. From ‘preparing the work environment for customers’ to ‘assisting with circulation activities’ the student will be learning about working in a customer service environment

The Bougainville Customer Engagement Training Program is a joint project between Unity Library, Haku Women’s Collective (HWC) and the Bougainville Integrated Community Learning Centre (BICLC- located in Southern Bougainville). The program is designed to provide much-needed educational opportunities which are lacking in Bougainville to committed and bright individuals. There is no age limit for admittance to the program, instead the focus has been on selecting individuals who are engaged in their local community; have a proven track record demonstrating their commitment through attendance/ working in their host organisation; and with whom each host organisation can see the potential for capacity development within each respective organisation for continued growth. 

In developing the training proposal with the educational service provider, the training coordinator (me) evaluated relevancy of qualifications in the work environment of Bougainville as well as accreditation. Key subject matter selected from both core and elective options and the integration of existing experience and work being done within each partnership organisation forms the basis of this program.

Each student makes a commitment to not only completing their studies as per the training contract, but also to engaging with their host organisation both within their studies but also contributing to their host organisation with hours worked and continued development of ‘on the job’ skill sets developed through the program. 

The key priorities during the program development was to evaluate and develop a learning framework that will be flexible and robust; qualifications that will be relevant and accredited; and that will be respectful of different learning styles and educational backgrounds considering student needs on an individual basis. Taken into consideration has been logical issues such as the geographic spread of the students, access to the training coordinator, and technological challenges.

The time commitment for the students varies depending on the study period they are in, though hours worked in their host organisation are set. The students will attend a training and study workshop once a month with the training coordinator and their fellow students which will focus on subject content for the study period, further development of computer literacy (which will be ongoing), and time to have one on one mentoring with the training coordinator. Mentoring and ongoing support will also occur within each partnership organisation and key people will be involved in this providing a more sustainable and well-rounded training program maximizing successful outcomes. 

Outcomes for the program are multiple and the program has been designed to ensure that the outcomes are relevant for the students, useful and long-lasting. It is anticipated that through completing the program, each student will be have enhanced computer and english literacy through both classwork and experience. The students will have opportunity to engage with each other and the joint partners thus increasing their networks and developing new relationships. Finally, the development of skills and knowledge, along with completion of the qualification leading to sense of achievement will build confidence and self-esteem for each student. 

The materials are printed, laptop is charged and we are ready for our first workshop tomorrow! Our first subject is ‘Communicate in the Workplace’ supported by cake for morning tea for expanding minds, and curry for stamina at lunch time. Stay tuned for photos and to hear how our students are going in this wonderful new program

Learn about the pilot literacy project on Bougainville founded by James Tanis  :Bookgainville



Bougainville Education NEWS: Quality universal education is the biggest impact


BOUGAINVILLE Children. Children born in the north, central, south and out on the atolls. Born everyday.

To them we will bequeath our senses and sensibilities, values, wisdom, knowledge and cultural traditions. But other than this, what are they going to inherit from us and from the land of their birth and adoption.

As we discuss, debate and differ about approaches to free education, quality, spaces in schools, ratio of teachers to pupil, and the relevance of a fatigued and a lavishly wasteful system, many children still continue to miss out on education for life.

Education, starting with parents and in schools is the most important impact project-still-in-waiting to be rolled out in Bougainville. How we start and the reforms we make will determine where we end up. We must do it now and do it with care, responsibility and integrity.


Simon Pentanu

Some children will never see the inside of a classroom. Not all may go past primary school level for one reason or other. For those that do, the system starts culling and rejecting them at the end of high school. Out of those that work harder than others and graduate through secondary schools, only some can find places and resources to pay their way to tertiary education.

There is no guarantee tertiary institutions will shape, form and despatch us our young ones back to us as daring young citizens with the skills and audacity to grow Bougainville. And, anyway the universities in this country are hapless and unprepared to offer degrees if they are poorly financially resourced and cannot guarantee a safe and secure environment conducive to learning.

Are we doing enough from parenthood to the highest echelons in leadership? We are very good and quick in creating children but not so good in looking after them. Reformation of our education system is the most important and urgent impact project yet to be embarked upon.

Education is the first frontier we must prepare our children to bear their cross, starting with their parents at home. The onus in their beginning is with the parents. After enrolment to begin in schools we must ensure that the teachers in whose trust we leave the school age children have the wherewithal to start preparing our future leaders.

Trust, confidence and skills are what every parent must expect of all teachers. It is what we must also demand from our government to achieve a sustainable goal towards quality education for all. We must all bear this responsibility if we want to transform Bougainville into a sustainable and resourceful living entity.

A society without proper and relevant education is a society that will not fully realise its potential. It is a society that will predispose its new generation to an uncertain future. More than that, without proper reforms and long term planning we will resign our children to a society susceptible to abject failure and poverty.

Education, starting with parents and in schools is the most important impact project-still-in-waiting to be rolled out in Bougainville. How we start and the reforms we make will determine where we end up. We must do it now and do it with care, responsibility and integrity.

For more info about our

Bookgainville Project on Bougainville PNG

Bougainville News : Momis : Debate on the process for lifting the ” moratorium ” on Bougainville mining exploration

photo J M

It should be no surprise to Members here today that in participating in this debate on the future of the ‘moratorium’, I am deeply concerned to ensure that the issues involved are discussed thoroughly, with care, and with the most careful attention to the need to fully protect the interests of Bougainvilleans. After all, that ‘moratorium’ protected our interests over many years. We need to consider the issues involved most carefully before deciding what should be done.

I’d like to comment briefly on the main options for a decision on the ‘moratorium’. The options include:

  • Maintaining the moratorium;
  • Lifting it partially, for limited specific areas of Bougainville;
  • Lifting it fully, for all areas of Bougainville currently covered by it.”

These matters that I have outlined must be carefully considered by this House when debating the options for decision on the future of the ‘moratorium’. Because of these issues about international tender for exploration licences, and setting up the community mining licence system, I suggest that we should not yet consider the option of fully lifting.

I further suggests that instead we should either maintain the existing moratorium for at least a period of two or three years, or alternatively only partially lift it, for just one or two specific areas. In that way we would allow the time to organise for international tender and for community mining licences “


Mr. Speaker:

The BEC has recently agreed to a recommendation from the Mining Minister that it is vitally important that this House discuss the future of the ‘moratorium’ on mining exploration.

The ‘moratorium’ was originally imposed 45 years ago, in April 1971, by the colonial Administration. It prevented any mining exploration licences for areas of Bougainville other than those already covered by BCL leases. It was imposed in response to the deep concerns of Bougainvilleans communicated to the colonial Administration by their then leaders.

45 years ago, I was a young, recently ordained Catholic priest working in Kieta. I was being called upon by landowners to support them in their struggle with CRA and the colonial Administration. So I was one of those leaders whose request resulted in the moratorium being imposed. It was imposed to protect our people from the unlimited mining exploration and development that they feared might :

It should be no surprise to Members here today that in participating in this debate on the future of the ‘moratorium’, I am deeply concerned to ensure that the issues involved are discussed thoroughly, with care, and with the most careful attention to the need to fully protect the interests of Bougainvilleans. After all, that ‘moratorium’ protected our interests over many years. We need to consider the issues involved most carefully before deciding what should be done.

When the last ABG House proudly passed the two Bougainville mining laws – the Bouganville Mining (Transitional Arrangements) Act 2014, and the Bougainville Mining Act 2015 – both laws retained the ‘moratorium’. It was adopted as if it was a reservation of land from mining exploration made under the Bougainville Act.

Members need to be very clear about what the Bougainville Mining Act 2015 says about lifting such a reservation (or moratorium). It gives the power to the BEC. The BEC can lift it partially (just for particular parts of Bougainville), or fully (for the whole of Bougainville). But when the BEC considers lifting the reservation, either partially or wholly, it must first get advice about its proposed decision from the Bougainville Mining Advisory Council (the BMAC). It must also provide an opportunity for debate of the proposed decision by this House.

This procedure is very different from how a reservation under the National Government Mining Act is lifted –that needs just a decision from the National Government Minister, with no consultation or advice required. In developing the ABG’s law, we were determined that an issue of this importance had to be subject to careful scrutiny. That’s why the decision cannot be made just by the Minister – it requires a BEC decision, and only after receiving considered BMAC advice and hearing a debate on the issues involved held in this House.

As the Minister also emphasises, as yet the BEC has not made any decision about the future of the ‘moratorium’. We are not coming to you with a proposed decision. Instead, we are asking this House to debate what we should do about the ‘moratorium’. We are doing this to generate broad public discussion of the issues involved.

Members might ask for an explanation of the reasons why we need such a public debate about lifting the ‘moratorium’. There are several reasons.

First, lifting the ‘moratorium’ is still a highly sensitive issue for many – perhaps even most – Bougainvilleans.

Second, many of the same issues that led to the request for the moratorium in 1971 remain. Even people open to some mining in Bougainville want it very strictly limited.

Third, if we do lift the moratorium, and especially if we lift it fully (that is, for the whole of Bougainville), it is likely that a very large proportion of the land of Bougainville will soon be covered by exploration licences. That will have huge impacts for all of us. There will be great difficulty turning back from such a massive change if it produces results that we do not like.

So there is a clear need for the most careful deliberation on the issues involved.

Ideally we want to have a major Bougainville-wide public consultation and awareness campaign about issues of such great importance. But because of our serious financial difficulties, that is not an option for us at the moment. So instead, the BEC has agreed to an initial debate in this House. That must be a thorough, careful and well-informed debate.

I believe that it is also essential that we engage with our people as part of this debate. So I recommend, in the strongest terms, that this House debate the ‘moratorium’ issue in two separate sessions. One should be now. Then when the issues have been carefully considered, I recommend that all members go out and consult the people of their constituencies, and seek their views. They should then have a second round of debate at the next House session – a debate further informed by the views of our people.

I’d like to comment briefly on the main options for a decision on the ‘moratorium’. The options include:

  • Maintaining the moratorium;
  • Lifting it partially, for limited specific areas of Bougainville;
  • Lifting it fully, for all areas of Bougainville currently covered by it.

Before we consider options, we need to consider carefully how either partial or full lifting of the moratorium would interact with, or impact on, other major aspects of the Bouganville Mining Act 2015. There are at least two aspects of the Act where there could be major impacts.

The first is the provisions on putting exploration licence application for particular areas out for international tender. The aim of international tender is to see if the ABG can raise significant revenue from exploration licences – for international tender could perhaps bring offers of millions of kina instead of a usual small exploration licence fee.

To put areas out to international tender, the Mining Department must first identify areas that have a potentially high prospective value, and then get geological survey done for those areas. The resulting information would then be made available as part of the tender process, so those offering to pay for a licence have some real information on which to base competitive bids.

If the ABG were to lift the ‘moratorium’ fully, we would be shutting the door on the provisions on international tender, for many years to come. The reason is that lifting the moratorium will mean that most, if not all, highly prospective areas will very quickly be covered by exploration licences. There will be nothing left to deal with under international tender processes.

If we are to keep the door open to using the international tender process in the next few years, we need some time to identify prospective areas and find the funds needed to get the necessary geological survey work done. We need perhaps 2 or 3 years to get such things organised.

In our current serious situation of financial crisis, we would be very unwise to throw away the possibility of raising serious funds by tendering exploration licences.

The second aspect of the Mining Act where fully lifting the moratorium would have major impacts is the arrangements for small-scale mining. Under the Act, COEs or Community Governments have authority to request the ABG to reserve areas exclusively for small-scale mining. Once areas are reserved, then the COE or Community Government will have the authority to issue licences to Bougainvilleans who are landowners of the area they are mining, or have permission of the landowners. That will then be the only basis for small-scale mining to be legal.

The Act gave the Mining Department time to get the new system of community mining licences organised. It made existing small-scale mining (in the absence of the new licences) legal for just 18 months, ending in October 2016.

I am very concerned now because I’ve recently been advised that the Mining Department has done nothing at all to organise the community mining licence system.

The problem now is that if the ‘moratorium’ if lifted for the whole of Bougainville, before the community mining licence system is set up and operating, then it will probably be almost impossible to have land reserved for community mining licences. The reason is that exploration licences will almost certainly be granted for most areas where small-scale mining is occurring. Once an exploration licence is granted over land, there can be no reservation of land for community mining licences without agreement of the exploration licence holder. Experience elsewhere suggests that exploration licences will be very reluctant to agree to community mining reservations that will encourage small-scale miners.

So again, we need some time, perhaps 12 to 18 months more, to allow the Mining Department to do what it should actually have been doing over the past 12 months – that is, working with the Community Government Department and other departments to set up the community mining licence system.

If we do not allow the time for this, then most, if not all, small-scale mining in Bougainville will be illegal. It will become more or less impossible to establish the community mining licence system. But of course, that will not stop small-scale mining from continuing. So that will set up serious risks of tension, confrontation and conflict between small-scale miners and exploration licence holders.

These matters that I have outlined must be carefully considered by this House when debating the options for decision on the future of the ‘moratorium’. Because of these issues about international tender for exploration licences, and setting up the community mining licence system, I suggest that we should not yet consider the option of fully lifting.

I further suggests that instead we should either maintain the existing moratorium for at least a period of two or three years, or alternatively only partially lift it, for just one or two specific areas. In that way we would allow the time to organise for international tender and for community mining licences.

There would also be other advantages in partial lifting, for just one or two areas. That would also allow the Mining Department the time it is likely to need to see how well it is able to administer the new tenement applications system established under our new Mining Act.

The Mining Department is a completely new and untried organisation, with no established experience of operating our new Act. Clearly the Mining Department must already be struggling to carry out its heavy responsibilities under the Act – for that would be the only acceptable explanation for its compete failure, so far, to do anything to establish the community mining licence system.

Once it has established that system, we could perhaps feel more confident that the Department is developing the kind of capacity it will be needing to effectively

My recommendations to the House to consider in this debate are:

  1. To debate the issues and options for lifting the moratorium thoroughly during this session of the House, and when the issues have been covered fully, the House should adjourn that part of the debate to return to our constituencies to consult our people on the issues involved;
  2. That there should then be a further debate on the issues at the next session of this House;
  3. That in that second debate, the options for lifting should be carefully evaluated, taking full account of likely impacts of maintaining the moratorium, partial lifting, or full lifting on both:
  4. Setting up the system of international tenders for exploration licences;
  5. Setting up the Community Mining Licence system for small-scale mining.6
  6. The House should consider the possible advantages of a partial lifting of the moratorium in just one or two areas, thereby allowing the Mining Department time to get the arrangements under the Act operating properly.

I must assure the members of this House that as President, I believe that this debate on the future of the moratorium is one of the most important debates we have ever held.

I assure you, Mr. Speaker, and all members, that I, and the BEC, will listen most carefully to the views expressed in this debate, and in the wider public debate, before we make any decision on lifting the moratorium.

I must also remind members that if we do later make a decision to lift it either partially or fully, then that decision too will have to be referred for advice of the BMAC, and the House will have to have the opportunity to debate the decision. So the future of the ‘moratorium’ could be a matter before this House for quite some time.

In my view, Mr. Speaker, it is entirely appropriate for the House to take an extended time to deal with such an important issue.

I look forward to hearing the contributions to the debate.

Thank you, Mr. Speaker.

Bougainville House of Representatives : Statement by the Speaker Simon Pentanu

 Simon Pentanu


Office of the Speaker


Budget session

The Speaker of the House of Representatives Simon Pentanu MHR has announced the 2015 Budget meeting will commence on Monday 21 December at 2 o’clock pm. This is the date agreed to in consultation with the President and the Minister for Finance taking into account the preparation time for the budget to be finalised. The House will meet over two to three days to consider and approve the Autonomous Region’s  budget for 2016.

This will be the final meeting for this year. The first meeting of the House in the New Year will be in March at a date and time to be fixed by the Speaker in consultations with the President.

In a prepared statement the Speaker also made brief reference to a number matters on his impressions to the start of the Third House 2015-2020.

Parliamentary Committees

The Speaker said the start to his term in Office has been eventful. It has been a period of settling in for all members, including Ministers. The Speaker expressed a particular delight that the House has appointed its main and important select and statutory parliamentary committees early in the life of the Third House. The parliamentary committee system in its full operational capacity would provide the best opportunities for members to play their rightful roles in wider and inclusive ways as leaders, lawmakers and elected representatives.

 Parliament poorly resourced

Mr Pentanu said resources,  financial resources in particular, will continue to be a challenge in the administration of the Parliament. In this regard the Speaker said that sadly, over the last ten years the Parliament which is an important arm of the Government has been poorly resourced. Even more appalling, the Legislature as one of the three symbiotic arms of the Government has been regarded , if not degraded as if it is just another administrative arm of the Autonomous Bougainville Administration.

He said that unless this attitude is changed Parliament and its parliamentarians will not play their representative, lawful roles as long as the Parliamentary Service continues to be poorly resourced. He said it is already obvious to him that the demand on members’ time and effort compared to the meagre resources that come with the office of a member is enormous. A Parliament and parliamentary service that is adequately resourced can plan well in supporting the constitutional mandate of elected leaders and provide integrity and respect to the roles they are expected to perform.

Financial Accountability

Our whole financial administration regime and accountabilities for funds at every level need to be blow torched and overhauled. We cannot continue to walk up and down the same corridors and expect different results. I am confident however, we have the leaders in Parliament to institute changes through well thought out and considered decisions to demand more and better accountabilities overall over ABG’s finances  in order to do and achieve more from the resources Bougainville is raises and receives. Our members are not just law makers, the Parliament is also the highest oversight body to which the Executive and the bureaucracy is accountable.

Women’s participation

Our women parliamentarians have shown confidence, commitment, desire and a strong will to make their marks inside and outside Parliament as they strive to represent women of Bougainville. Their participation in debates, the questions they direct at the ministerial benches and their appreciation of what their roles entail has been impressive so far.

Former combatants

Our three members representing the former combatants have contributed to discussions and debates in an assured way. They are members of important parliamentary select committees. However, as representatives of interest groups the members need more assistance in articulating the hovering constituency issues in a way that Parliament and Bougainville leadership may be able to involve or utilise their membership in a progressive way in connection with the constituents they represent.

Positive start

The management of the business of the House, the corporation and collaboration with the Executive in Parliament and attendance and  participation by all members during parliamentary sessions has been pleasing. Members have benefitted from inductions at the start of their political and parliamentary career. Member’s attendance and participation at a recent parliamentary seminar jointly hosted by the Department of Referendum, Peace and Veterans in a rural setting was very encouraging.

Autonomous funding

Ours is a Parliament by the People, for the People, of the People and we must go back to the People at every opportunity.  I do not see why this should be difficult when this is the duty and desire of all members. It is absolutely possible with proper planning and adequate funding under an arrangement in which Parliament is funded separately in an autonomous arrangement where it is provided and is accountable for its funding.


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.


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.


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.


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: Ex-combatants in Bougainville support controversial Bougainville Mining Act.


Grand Chief Momis addresses Excoms

“The government has done everything to thoroughly explain to the people the new Bill and how it will greatly regulate the extractive industry on Bougainville.We cannot continue to undermine the government for it is the very thing that we fought and died for, doing so only renders the purpose of our struggle moot,  .We are all behind the government and will not resort to creating instability within the region.

Spokesman for the ex-combatants, Cornelius Solomon

Ex-combatants in Bougainville have rallied behind the Autonomous Bougainville Government to support the passing of the controversial permanent Bougainville Mining Act.

Written and Supplied by Anthony Kaybing

The ex-combatants met with the ABG and its officials this afternoon (Tuesday) to express their support of the bill and assured ABG President Grand Chief Dr John Momis of their intent.

The permanent Bougainville Mining Bill is the brainchild of the Momis led ABG in its efforts to curb mineral resource problems that led to the bloody ten year civil conflict on the island.

The Bill if passed will give landowners a pronounced say on how mineral extraction is carried out on their lands and also controls the type of would be developers interested in mining on Bougainville.

The Bougainville Mining Department as well as the Bougainville Justice Department have been carrying out widespread awareness on the issue throughout Bougainville to explain the intricacies of the Bill to Bougainville communities.

Despite being hailed as a successful attempt by the government to protect Bougainville’s interests there have been certain elements who continue to argue that the bill is a sham and designed to sell Bougainville.

Foremost amongst its critics is former Bougainville Revolutionary Army strongman Sam Kauona who claims that the Bill lacks certain details that safe guard Bougainville from being exploited again.

But a different sentiment was echoed by Mr Kauona’s former comrades who claimed ownership of the government and in this light respected the ABG’s intent on passing the Bill.

Spokesman for the ex-combatants, Cornelius Solomon said the government has done everything to thoroughly explain to the people the new Bill and how it will greatly regulate the extractive industry on Bougainville.

Cornelius Solomon on behalf of excoms affirms ABG support

“We cannot continue to undermine the government for it is the very thing that we fought and died for, doing so only renders the purpose of our struggle moot,” Mr Solomon said.

Mr Solomon said that the ex-combatants were all behind the government and would not resort to creating instability within the region.

President Momis and his government also expressed their gratitude to the ex-combatants for taking the initiative to recognize the ABG’s efforts to act in the best interest of the people of Bougainville.

The Bill will be tabled sometime this week in the Bougainville House of Representatives as the members prepare to sit for the final sitting of the ABG second house since coming into office in 2010 before if goes to the polls in May.


Bougainville Education News: NRL League Bilong Laif program commences in Bougainville


Education is also a key priority for the people and government of Bougainville. The League Bilong Laif program will highlight the importance of education to the children of Bougainville so that they can strive to reach professions that will build a better future for Bougainville.”

NRL PNG In-Country General Manager, Mark Mom.

The League Bilong Laif program is expanding into a fourth region of Papua New Guinea, commencing its school-based rugby league activities in the Autonomous Region of Bougainville this month.

League Bilong Laif uses rugby league as a tool to support education outcomes. It is funded by the Australian Government and delivered by the National Rugby League (Australia) in partnership with the PNG National Department of Education and Bougainville’s Department of Education.

Photo : Children at Malasang Primary School at the launch of League Bilong Laif. Copyright: NRL Photos.

This month the program kicked off in Buka, where NRL development officers are working with around 950 students across two schools – Lonahan Primary School and Masalang Primary School

Each participating class receives five sessions of rugby league-related on-field and in-classroom activities that are non-contact and non-competitive and designed for girls and boys of all abilities.

Australian High Commissioner Ms Deborah Stokes said, “This program supports Australia’s strong youth focus in Bougainville. Empowering young boys and girls through sport is a powerful way to strengthen skills and community cohesion.”

The program uses a range of rugby league-themed educational and reading materials that the NRL has developed with Macmillan Education Australia that encourage healthy lifestyles and boost students’ physical, social, literacy and maths skills.

“Bougainville has been a nursery for many great rugby league players, including Kumuls representatives Bernard Wakatsi, Joe Katsi, Lauta Atoi (now the Honourable Member for North Bougainville), and Chris Siriosi (former Chief Secretary of the Autonomous Bougainville Government),” said NRL PNG In-Country General Manager, Mark Mom.

“Education is also a key priority for the people and government of Bougainville. The League Bilong Laif program will highlight the importance of education to the children of Bougainville so that they can strive to reach professions that will build a better future for Bougainville.”

Newly appointed Buka-based NRL PNG Development Officer, Stephanie Garea, said she is honoured to join the League Bilong Laif program, which employs female development officers in all its regions.

“I’m so happy to represent Buka as a woman in helping to establish this program and see female students running around with us during the sessions. I will make sure I do as much as I can as a female development officer to help my community and my region.”

The League Bilong Laif program will roll out into additional schools in Bougainville in term two.

How can you support Bougainville education ? Donate ebooks

More info and donations here BOOKGAINVILLE

Bookgainville  Project on Bougainville PNG

Bougainville Education News : Bougainville schools can win Laptop and Kindle in essay competition

Bougainville Education News :Essay competition is an opportunity for students to have their say about the Bougainville’s future

Please share with your schools and networks

2014-05-26 12.56.40

A new essay competition for secondary and high school students in the Autonomous Region of Bougainville will provide youth with an opportunity to have their say about the future of the region.

Revised Closing date Friday 13 March 2015

The topic

“Is having a vote enough? What are citizens’ responsibilities in promoting and upholding democracy?”

aims to engage youth in discussion and what they see for their own future as Bougainvilleans.

Sponsored by the Australian High Commission in Papua New Guinea, the competition offers a laptop computer as a first prize.

The secondary and high school that the winning student attends will receive a Kindle (Can hold up to 1,400 books) from the Arawa based Bougainville E-reader Education Revolution Project that currently has 55 Kindles being distributed to 11 schools throughout Bougainville. SEE WEBSITE

Entries are open now and close on Friday 13 March 2015

The essay competition is open to all high school and secondary school students in Bougainville. Essays are to be 600 – 1000 words.

Entries can be mailed or submitted in person to the Australian High Commission Buka Office, Tsirin Motors Building, Haku Street, Buka or emailed to

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Bookgainville  Project on Bougainville PNG

Bougainville Women’s News: Strengthening the participation of women in Bougainville’s development


The Challenge: Prior to the conflict, Bougainville women played vital roles in community-level decision-making and were key agents of development. Overall, women held important positions in the family and community. Since the conflict this role has been weakened, resulting in women being marginalised from community decision-making processes. Further, during the conflict, women suffered violence as victims of torture, rape, and forced labour. The weakened capacity of women as agents of development within their communities and the low capacity of government departments working at the local level are widely viewed as significant challenges to development efforts

View the World Bank Website for more


Located at the eastern-most point of the New Guinea islands, Bougainville comprises two large and many smaller islands. It has a population of approximately 200,000 and over a dozen different languages. A province of Papua New Guinea since 1975, Bougainville is now an autonomous region within the country — the result of a nine-year revolt that left tens of thousands killed, a divided and traumatised population, degraded infrastructure, and a shattered economy brought on by the collapse of its main industry, mining.


The Inclusive Development in Post-Conflict Bougainville project will benefit women and women’s organisations across the autonomous region as well as communities where projects are implemented and the individuals and agencies who are trained under the project.

The project consists of three components:

  1. Building Capacity for Inclusive Community Development; training women’s organisations and civil society organisations to support the involvement of women in community development. Training is provided for staff in the government, district and sub-district levels.
  2. Small Grants for Inclusive Community Development; women’s groups are invited to apply the concepts and skills they have learned from training directly to the design and implementation of community-based projects through the availability of small grants.
  3. Project Management and Knowledge Sharing.



Through component 1, training has been delivered to 450 participants, exceeding the goal of 400 in the implementation plan.  Over two thirds of the participants have been women, exceeding the target of about 40%.  There were 51 participants from the Public Service which exceeds the goal of 46 as well as 190 participants from CSOs which exceeded the goal of 152.

Through component 2, small grants have been awarded to 41 women’s groups, including at least one project in each of Bougainville’s 13 districts. People benefitting from completed grant projects are estimated at over 48,000, nearly 25% of the population.

An Independent Monitoring Group concluded that public goods from the project are reaching communities with overall sound management of funds and that women’s roles are being strengthened through their direct management, ownership and leadership in the whole process.


Bank contribution

The World Bank (State and Peace-building Fund) has contributed US$2.5 million for this project


Moving forward

With the project currently set to close in March 2015, plans are underway to secure additional financing to extend the project to March 2018. Additional financing would support the provision of two more rounds of small grants to women’s groups, one per round for each of the 41 Community Governments.  Training would continue to build the capacity of women’s groups while also engaging District officials and Community Government leaders more actively in development planning monitoring and implementation support.

Promotion/Advertising : Donate here to support educating young girls throughout Bougainville

Bookgainville  Project on Bougainville PNG