Shareholders want action on Bougainville mine

Australasian Centre for Corporate Responsibility

Shareholders at the Bougainville Copper (BCL) AGM will push the company to address the concerns of the local community and environmental issues before attempting to reopen the Panguna mine, Bougainville, Papua New Guinea.

BCL operated the Panguna mine between 1972 and 1989. Panguna is, still, potentially one of the largest copper and gold mines in the world.

The Australasian Centre for Corporate Responsibility (ACCR) has placed two resolutions on the agenda for the Bougainville Copper AGM to be held in Port Moresby on May 6.

“The best chance of BCL’s mine being re-opened will come from commitments to future good corporate citizenship by BCL. Rio Tinto, its largest shareholder has made such commitments. BCL should too. That is what our resolutions call for.” said Ms Caroline Le Couteur, Executive Director, ACCR.

The mine was closed as a result of industrial sabotage by local landowners arguing that the mine polluted the environment and waterways, harmed culture, custom and kinship, killed wildlife, damaged crops, caused illnesses and significant inequalities. The group demanded compensation and the mine closure. The PNG government responded using military force and a blockade, prompting a decade long war leading to 10,000 to 20,000 dying.

“To improve the chance of the mine reopening, to get a better deal for the people of Bougainville and ensure the environment disaster of the previous operations are not repeated, we are calling on BCL to invite an independent jurist to conduct a full enquiry into the involvement of BCL in the civil war, and ensure any proposal to restart the mine should deal with the outcomes of that enquiry. We are also calling on BCL to commit to a high standard of environmental rehabilitation,” said Ms Caroline Le Couteur, Executive Director, ACCR.

ACCR is working with Jubilee Australia, an NGO with strong links to development organisations and faith groups in Australia including the National Council of Churches of Australia. Jubilee Australia’s CEO Brynnie Goodwill said, “The voices of the people living in the vicinity of the mine who live with its impact now and for years to come should be closely involved in decisions regarding its future.”

An ‘Investor briefing’ and details of ACCR and Jubilee are on our website or visit our Bougainville page