Tag Archives: ABG

Government To Transfer BCL Shares To Landowners

Post Courier | July 3, 2018

THE National Government does not wish to hold any shares in Bougainville Copper Limited, Prime Minister Peter O’Neill has told the people of Bougainville.

He said the National Government is going to transfer shares on BCL to the landowners where the mine is located at Panguna, Central Bougainville.

“We have transferred 17.4 per cent out of Rio Tinto shares, National Government does not wish to hold on to those shares and we believe it rightfully belongs to the landowners where the mine is,” Mr O’Neill said in a statement yesterday.

He said the other issue relating to the state-owned shares that is about 19 per cent would continue to have discussions with the Autonomous Bougainville Government and relevant stakeholders as to how these shares could be disposed in the new future.

“But let me stressed very clearly that we have obligation, both ABG and National Government and the landowners of Panguna, we have an obligation to the minority shareholders of BCL who have trusted us and have bought shares in this company many years ago, they are simply mums and dads who have invested in the future of Bougainville and we have to resolve these issues with them in an amicable arrangement where they can be able to easily dispose their shares either to ABG or landowners,” Mr O’Neill said.

According to the 2017 BCL annual report, the Bougainville Government is the major shareholder – its Bougainville Minerals Ltd holding 36.45 per cent, or 146,175,449 shares in the mine. It is followed by the State which has 76,430,809 shares or 19.06 per cent of BCL.

The third biggest shareholder is state-owned enterprise Eda Minerals Limited which has 69,744,640 shares or 17.39 per cent followed by JP Morgan Nominees Australia Limited which has 59,264,812 share or 14.78 per cent of BCL. BCL announced at its annual general meeting in Port Moresby in May that there would be no dividends paid to both national and international shareholders for the 2017 financial year on top of a recorded consolidated K7.30 million loss after tax.

Company chairman Sir Mel Togolo also reported BCL’s consolidated income for the year at K7.63 million which included K5.23 million in interest and dividends and realised gains on the sale of investments of K2.39 million for the year.

“Operating expenses for the year were K14.83 million compared with K11.52 million in 2016 and were under budget.

“The company has sufficient funds to meet recurrent expenditure under the current work plan and remains debt free. “BCL will not pay a dividend,” Sir Mel said.

He said the K7.30 million loss was against a budgeted loss of K15.2 million and consolidated loss of K3.78 million in 2016

Advertisements

2 Comments

Filed under Financial returns, Papua New Guinea

‘Bougainville won’t fall for more false claims from BCL’

Photo: Catherine Wilson/IPS

Philip Miriori (Chairman) and Lawrence Daveona (Ex Chairman) SMLOLA | 4 June 2018

HOW CAN BOUGAINVILLE COPPER LIMITED BELIEVE WE AND OUR AUTONOMOUS BOUGAINVILLE GOVERNMENT WILL FALL FOR MORE OF THEIR FALSE CLAIMS OF RESPECT FOR BOUGAINVILLE AND ITS PEOPLE?

Bougainville Copper Limited (“BCL”) continues to insult and disrespect Bougainville: the Panguna Customary Landowners by the recent statements made by BCL’s Chairman, Mr Mel Togolo and the ABG by their treatment at their Annual General Meeting blocking their vote.

Why did BCL not work with the ABG in advance to ensure they could have their say at the meeting if they are genuinely trying to mend fences with Bougainville and lose their mantle of being a PNG controlled company?” asked Mr Philip Miriori, the Chairman of the Special Mining Lease Osikaiyang Landowners Association (“SMLOLA”).

Mr Miriori said “we know the new BCL Chairman has his trainer wheels on, but this is unbelievable! How many world class mines has he developed? Wasn’t he the guy who sat on the Rio controlled BCL Board in the bad old days – for 6 or 7 years? Isn’t he the PNG country manager for the environmentally controversial deep sea mining start up, Nautilus Minerals? Why would we want any of that?”

Then there is the false attempt to blame third parties for the opposition by the Panguna Customary Landowners: this reflects the continuing failure on the part of BCL to even acknowledge the historic environmental havoc wreaked on the Panguna Land by BCL and the role of BCL in the devastating conflict in Bougainville. “Do they think we have forgotten or forgiven – no never” says Mr Miriori.

Mr Miriori, says “The failure of BCL’s Chairman, Mr Togolo, to acknowledge the historic wrongs committed against the people of Bougainville is totally unacceptable. The wilful blindness of BCL, its failure to admit its role in causing the environmental devastation to our land and its failure to rehabilitate or provide compensation for the damage, condemns BCL from ever obtaining SMLOLA’s approval or support. Trying to blame third parties for this is both naïve and arrogant – it is a flimsy and dishonest attempt to divert attention from their failure to win any aspect of social licence to return to Bougainville. That is and will always be the problem.”

Mr Miriori said “it is simple, BCL has one of the worst environmental and social impact records in the world and has not been welcome to return to Panguna in 30 years – yet they claim strong Landowner support. Just more lies!”

Prominent SMLOLA member Mr Lawrence Daveona supported Mr Miriori’s comments saying “BCL’s operations at the Panguna Mine were the cause of the devastating conflict on Bougainville. That is why they have been unwelcome in Bougainville for the last 30 years. It was the height of arrogance to think they could win community support without any reconciliation. They have ignored us and tried to go around “the impediments” – the owners of the minerals and have tried to simply pull political strings. The recent BCL attempt to curry favour and scramble to regain tenure to their old mine has been a disaster, just like their treatment of our lands and people – after 30 years of neglect and arrogance, how surprising!”

Mr Daveona said “our President Momis summed it up perfectly when he said BCL did not deserve the renewal because their attitudes to Landowners had not changed from the past.”

Mr Miriori spelt out what he said “were obvious facts:

  • BCL has achieved no reconciliation with the Customary Landowners for 30 years;
  • BCL has not attempted discussions with the current Court sanctioned SMLOLA Chairman and Executive even once; 
  • BCL has failed to acknowledge its role in Bougainville’s tragic history;
  • BCL has offered no compensation for the environmental and social impact of BCL’s massive profit taking operations at the Panguna Mine;
  • BCL has offered no assistance to rebuild Bougainville post resolution of the conflict; 
  • BCL has undertaken no remedial action to address the massive environmental damage from its past operations; and
  • BCL has made no attempt to identify the needs of the Customary Landowners and engage with the community.;

Mr Miriori said “it was outrageous that BCL untruthfully claimed it held unanimous Landowner consent when there was an existing petition with more than 2,000 SMLOLA members rejecting BCL’s return to Panguna. BCL has insulted the Customary Landowners by referring to them as ‘impediments to be removed’ and more recently, ‘disruptive influences’. This shows a contempt for the rights of Customary Landowners and the people.

Mr Miriori said “how could they have been surprised – they have never had majority Landowner support. Have they forgotten their 30 year history of devastation they never seem to mention now?”

Mr Daveona supported the ABG’s decision saying “BCL had an EL for two years from 2014 to 2016 and even had a further 15 months after the expiry of EL 1 and still they could not win Landowner support. The refusal of that application has been very positive for the Landowners and allowed us to bring an end to the social disharmony their false claims caused and to build an even stronger opposition to their return. The Landowners are now fully united against BCL. BCL should leave and respect the wishes of Landowners.”

President Dr John Momis of the ABG stated on 8 January 2018, in a public interview with the Australian Broadcasting Corporation, that the BCL Application had been denied by the ABG because of the Panguna legacy Issues and consequently the inability of BCL to gain a social licence. He observed BCL’s attitude towards Customary Landowners had not changed and therefore that BCL did not deserve an extension. It was noted that at the Warden’s Hearing in December 2017 almost all those who spoke referred to these significant and continuing legacy issues and the need for BCL to pay compensation.

President Momis was entirely correct in his observation and the recent statements by BCL’s Chairman show a contempt not only for the Customary Landowners but also for the ABG itself.

Mr Miriori agreed saying “BCL was the tenement holder during the time which systemic damage to the environment and river systems occurred. The Panguna mine was at the centre of the conflict.” It is reported 20,000 Bougainvillean people died in this conflict. This is the incontrovertible factual truth of BCL’s legacy.

These events are of global significance and to this day are fundamental to the vast majority of the Panguna Customary Landowners and Bougainvilleans opposing BCL’s return.

BCL made a formal decision to not acknowledge responsibility, to not say ‘sorry’ and to not pay any fair compensation for these events and the massive damage. These deliberate commercial decisions (to save BCL money and to not acknowledge its past wrongdoings) are fatal to BCL’s attempt to return to Panguna.”

As the highly respected community leader, Mr Sam Kauona said at the Warden’s Hearing, BCL can never be allowed to return to Panguna. The petition opposing BCL’s return has more than 2,000 supporters. The majority of those attending and speaking at the independent Warden’s Hearing in December 2017 opposed BCL’s return.

The continued failure to have regard to the opinion of the Customary Landowners, Mr Miriori says, “shows an arrogance and on-going disrespect.” He powerfully criticises BCL’s attempt to divert the blame from its own conduct “This arrogance and ongoing disrespect of the Landowners’ clear wishes perpetuates the tragic legacy of BCL/Rio, and with every day that passes, further compounds and entrenches the opposition of the overwhelming majority of Panguna Landowners to BCL. Let us now look forward not backward to a new deal for Bougainville. BCL is finished. Its attempt to cause even further delays to the successful redevelopment and reopening of the mine blocks and delays employment opportunities, the funding of critically needed community programs and obtaining of financial benefits for all Bougainvilleans.”

1 Comment

Filed under Environmental impact, Human rights, Papua New Guinea

BCL “wishes to create goodwill”

Cedric Patjole | Loop PNG | May 28, 2018

Bougainville Copper Limited (BCL) chairman, Mel Togolo, says the company aims to work positively and constructively with both the PNG and Autonomous Bougainville Government (ABG).

He also said the company wishes to create goodwill among communities as they plan to redevelop Panguna Mine.

Togolo said this following the company’s Annual General Meeting on Thursday.

Togolo said it was important to note that BCL was a PNG company with both the PNG and ABG governments as major shareholders.

“The National Government and the Autonomous Bougainville Government have 36.4 percent each. They own the company because they have significant interest in the company on behalf of their respective people,” said Togolo.

Given their majority shareholding, it was important that positive and constructive relationship was in place.

“We respect the Government of the day. We want to work together, and also we know that the Government, the Bougainville Government like the Papua New Guinea Government, have got significant interests as shareholders and their interest as a board we’ll have to look after that interest and to make sure that we create goodwill and understanding among the community in order for us to redevelop the Panguna Mine.”

With the referendum approaching, Togolo says that is a political process they will not be involved in. But they encouraged both governments to work together during the process.

“But as a company we are focused to see how we can redevelop the mine which will be of benefit to Bougainvillean people and the Government of Papua New Guinea.”

Leave a comment

Filed under Mine construction, Papua New Guinea

Court hearings in Port Moresby and Melbourne over future of Bougainville’s Panguna copper mine

The abandoned Panguna copper mine. Credit Sydney Morning Herald

Kevin McQuillan | Business Advantage | 8 May 2018

Two court hearings on May 17, one in Port Moresby and the other in Melbourne, will help determine the future of the exploration licence for the Panguna copper mine in Bougainville. Business Advantage PNG looks at the ongoing competition for the rights to exploit the resource.

The decision to refuse an extension of Bougainville Copper Limited’s exploration licence and to impose an indefinite moratorium over the Panguna resource, followed a statutory Warden’s meeting in December 2017.

There was ‘a narrow divide between those supporting the mine to be opened by Bougainville Copper Ltd (BCL) and those that oppose it’, according to Bougainville President John Momis.

BCL has successfully sought leave to apply for a judicial review of the decision to refuse its licence extension, citing legal and procedural concerns.

‘While the moratorium has been gazetted, it has no impact on existing exploration licences or applications for extension, lodged prior to the moratorium,’ BCL Company Secretary, Mark Hitchcock, tells Business Advantage PNG.

‘BCL remains the holder of the exploration licence (EL1) until the matter is ultimately determined,’ he says.

BCL has held the licence since the mine closed in 1989. The company is now owned by the PNG national government (36.4 per cent), the Autonomous Bougainville Government (36.4 per cent), European shareholders (four per cent) and 23.2 per cent through the Australian Securities Exchange (ASX). Rio Tinto gave away its stake in 2016.

Those opposing BCL’s involvement are led by Philip Miriori, who claims chairmanship of the Special Mining Lease Osikaiyang Landowners’ Association (SMLOLA).

He has thrown his support behind a bid by Perth-based junior miner, RTG Mining, to gain the exploration licence, setting up a joint venture company, Central Exploration, of which RTG owns 24 per cent.

One of RTG’s major shareholders holds another 32 per cent, and the SMLOLA retains 44 per cent.

Miriori’s chairmanship of the SMLOLA remains in dispute. The 367 authorised customary heads of the 510 blocks of land within the special mining lease area of Panguna say they do not recognise Miriori as the Chairman of the SMLOLA and support the extension of BCL’s exploration licence.

Melbourne hearing

On the same day as the Port Moresby hearing, BCL will be in court in Melbourne, seeking disclosure about the relationship between RTG Mining and the SMLOLA.

Miriori and other supporters admit they are being paid by RTG, but Miriori has told the ABC that the payments are legitimate salaries, not inducements.

‘That is always a normal part of anything, nothing is free,’ he says.

The action seeks disclosure from RTG Mining and Central Exploration about any compensation or benefits paid to the SMLOLA.

One analyst close to the proceedings says any disclosure could determine the possibility of ‘unlawful interference’ with BCL’s exploration licence.

For his part, Momis says his government believes it would be ‘untenable under current circumstances’ for any developer to develop the mine.

‘We have some problems with RTG right now,’ Momis tells RNZI.

‘In fact, they are causing a lot of confusion and division in the community and we are not prepared to go ahead while this situation prevails.’

Exploration data

Should RTG Mining or any other company win the exploration licence, the next battle will be over the data about the location and extent of resources.

‘BCL has an extensive database of historical data and project information from the mine operations prior to closure in 1990,’ says Hitchcock. ‘This data remains the intellectual property of the company.’

Even if that data is not protected by intellectual property law but is only considered confidential information, it will still require cooperation from BCL to access, according to Alexandra George, Senior Lecturer at the University of New South Wales, who specialises in international intellectual property law.

She tells Business Advantage PNG it might be expensive and time-consuming to obtain.

She says under Australian copyright law, ownership of a database is not straightforward. Whether or not RTG Mining could access the data may depend on the terms of the exploration licence, any special legislation, and on the terms of any contracts or licence agreements that have been entered into.

‘If [the data] was not available, having to reinvent the wheel would add significant costs,’ says George.

‘Perhaps the safest way of assessing value is what the market is prepared to pay.’

‘We estimate it would take any other company or entity at least two-to-three years to replicate the BCL database through exploration activities and would cost in excess of A$200 million (K400 million),’ says Hitchcock.

Leave a comment

Filed under Exploration, Mine construction, Papua New Guinea

PNG can overide Bougainville laws – PM

Panguna mine. Photo: Wellington Chocolate Factory

Radio New Zealand | 26 April 2018

Decisions by the Bougainville parliament can be overidden by the national parliament, the Papua New Guinea prime minister says.

Peter O’Neill made the comment to news agency Reuters after the Autonomous Bougainville Government (ABG) announced earlier this month that it was placing an indefinite moratorium on a resumption of mining at Panguna.

Its president, John Momis, said the ABG imposed the ban as it did not want to disrupt preparations for Bougainville’s independence referendum next year.

Grievances caused by the mine were central to the outbreak of civil war in 1989, a 10-year conflict that cost over 20,000 lives.

When asked about the moratorium, Mr O’Neill said that the “constitution and the overall legislation from the national government is the one that underpins all the other legislation”.

“It’s subject to the main laws,” he said.

The vast Panguna copper and gold mine once generated nearly half of PNG’s annual export revenue.

1 Comment

Filed under Papua New Guinea

Hearing on BCL licence case next month

Sally Pokiton | Loop PNG | April 23, 2018

decision for the non-renewal of exploration licence to Bougainville Copper Limited will be reviewed by the National Court in May.

The decision made on 16 January 2018 by the Autonomous Bougainville Government has been stayed by the court since April 10, pending the substantive hearing.

It was stayed after leave was granted by Justice Leka Nablu of the Waigani National Court.

Parties in the case, including another interested party, appeared before the National Court today (April 23).

The case will return to court on May 10.

BCL applied for the renewal of its exploration licence on 6 May 2016 from the Department of Mineral and Energy Resources of the Autonomous Bougainville Government.

On 16 January 2018, BCL was informed that the exploration licence will not be renewed. BCL believes there were flaws in the process and wants the decision to undergo judicial review.

1 Comment

Filed under Exploration, Papua New Guinea

Bougainville president elaborates on ‘No’ to mining

Radio New Zealand | 17 April 2018

The President of the autonomous Papua New Guinea region of Bougainville has elaborated on why his government is saying no to mining at Panguna for the foreseable future.

Panguna was the site of the Bougainville Copper Ltd mine which was at the crux of the ten year long civil war.

In recent years there has been a push to have it re-opened to help drive the Bougainville economy forward.

Two companies, Bougainville Copper Ltd and RTG have been battling for the rights to mine Panguna but last week the government announced an indefinite moratorium on mining there.

Don Wiseman asked Bougainville President John Momis why they had taken such action.

JOHN MOMIS: Because landowners themselves are split. One faction supporting another company in developing the mine and another faction supports another company. So we don’t want to cause a split amongst the landowners because we have a referendum coming. We want to make sure we unite our people.

DON WISEMAN: Yes, although the landowners you say are supporting another company – that’s the Osikaiang group and they are right at the site of the current mine so as far, I think, as they are concerned, they are the landowners at that point, therefore they are ones that make that decision.

JM: Not really. Titleholders have rejected their claim. They have said they are not the legitimate titleholders, this Osikaiang group. Titleholders, according to law, are people who are supporting another company. So there is a definite divide and until the people are united we will not proceed with any mining.

DW: So in the meantime, in terms of trying to orchestrate some sort of unity, is the ABG going to do anything? Are you going to undertake anything, or leave it up to the landowner groups themselves?

JM: No, no we have taken steps to unite them. For us you know determining Bougainville’s future is more paramount right now. It is the priority we are focussing our attention to, to make sure that the people of Bougainville are united, so we don’t want any other issues to undermine this unity.

DW: Essentially it is off the radar until after the referendum?

JM: That’s probably it. I can’t see how the landowners can unite before the referendum. If they do then that will be good and we will look at other possibilities.

DW: The ABG of course is in an invidious position because you are a significant owner of Bougainville Copper Ltd, which is this other company you talk of. If the landowners agreed and they wanted to go with RTG, the second of those companies, would you, the ABG, accept that?

JM: We have some problems with RTG right now. In fact they are causing a lot of confusion and division in the community and we are not prepared to go ahead while this situation prevails.

DW: One of the reasons for this focus on Panguna had been to get the economy cranking ahead of the referendum, if that was possible. So if the effort is now going in a different direction is there going to be this focus that’s been talked about up to now but I am not sure how much has been done, in terms of agriculture and tourism and fishing.

JM: We cannot sacrifice unity for the sake of even generating revenue at this point in time. We have the referendum coming and it’s going to be very high on our priority list, so we have made it very clear to the landowners that unless they are totally united and they are prepared to subject themselves to the rule of law and so on and so forth, the ABG will leave the reserve [moratorium] in place.

DW: But in terms of these other industries is any effort going into those?

JM: We are looking at timber development and other industries, yes.  

Leave a comment

Filed under Financial returns, Human rights, Papua New Guinea