BCL opens talks on Panguna

BOUGAINVILLE Copper Limited (BCL) has proposed to commit US$3 billion (K8.2 billion) to return and reopen the abandoned Panguna mine in the Autonomous Region of Bougainville (ARB).
BCL chairman Peter Taylor yesterday announced the company’s intention to return and reopen the mine during its 43rd annual general meeting in Port Moresby with shareholders and landowners.
However, Mr Taylor told shareholders and landowners that it would need to be a fair and stable mining regime that gives investors the confidence needed to commit to a project that could cost billion.
He said the World Bank initiative aimed at helping Bougainville develop capacity to manage its mining sectors continue and there was a good chance the transfer of mining powers to ARB would occur this year.
“That is an important step because, as matters currently stand, there is an expectation of transition but not certainty,” Mr Taylor said.
He was hopeful that the new Bougainville mining regime would be largely consistent with the national model to assist with smooth transition from old regime to the new.
“If mining powers can be draw down by ARB without undue delay, BCL believes that Bougainville Copper Agreement while its terms are being renegotiated, can facilitate a return to Panguna and the early generation of benefits to stakeholders.”
Mr Taylor also disclosed studies indicated that there was in fact more gold, silver and copper in the ground at Panguna that had preciously been extracted.
He said though it was important to take the time to get the new mining regime right, it was also necessary for all parties to drive the process as hard as possible so current promising signs of world’s economic growth were not missed.
It is also learnt that there are stakeholders who are prepared to commit the K8.2 billion, including Rio Tinto as well as expanding share markets.