Tag Archives: Bougainville Advance Mining

Top Lawyer Queries ABG’s Interpretation Of Mining Act

The controversial Panguna mine which land holders are fighting to stop being re-opened for foreign profiteers.

Post Courier | June 21, 2019

One of the world’s leading mining lawyers, Michael Hunt, an advisor to the Special Mining Lease Osikaiyang Landowners Association (SMLOLA), has issued a stinging attack on the statement which attempted to justify the proposed changes to the Bougainville Mining Act (BMA).

The changes were rejected by the Bougainville Parliamentary Committee on Legislation last week (read the full legal assessment).

This statement was a submission to that committee lodged by Minister Wilson and was published on June 19, 2019.

Mr Hunt said, the Statement, entitled “Interpreting Part 17 of the BMA”, “pretends to explain the Bougainville Mining Act (Amendment) Bill 2019 (Bill) in laymen’s terms but in reality, it is a false and misleading manifesto riddled with errors.”

Mr Hunt categorically confirmed that the proposed amendments would actually abolish all of the landowners’ rights relating to any application by the company 40% of which will be owned by McGlinn’s Caballus Mining and other foreign investors.

He added that all the provisions in Parts 1 to Part 16 of the BMA which protect the rights of landowners are over-ridden by the stroke of a pen in Part A of the Bill.

The confiscation of the landowners’ property and rights under the Bill is “unreasonable, unfair and unconstitutional.” said Mr Hunt in his formal legal opinion.

Mr Hunt confirmed the view previously expressed by SMLOLA: that the Bill “effectively confers a near monopoly on one company over exploration and mining on Bougainville”.

Mr Miriori, the Chairman of the SMLOLA further questioned how it was possible that they got the interpretation of the amending legislation so grossly incorrect?

“Why was Parliament misled? Something profoundly wrong is going on here,” he added.

The Parliamentary Committee reported that the normal practices and safeguards were sidestepped.

Mr Hunt is an Australian legal practitioner, who has written the authoritative book, Mining Law in Western Australia (the fifth edition of which was published in October 2015), the “Energy and Resources” volume of Halsbury’s Laws of Australia and the book Minerals and Petroleum Laws of Australia.

Mr Hunt has been recognised nationally and internationally as a leading mining lawyer, regularly named as such in legal market surveys. He was named in both Chambers Global Guide and Chambers Asia Pacific, putting him amongst the world’s top mining lawyers. Chambers’ review reports: “Michael Hunt is regarded as Western Australia’s pre-eminent expert on mining law.”

In 1987 he conducted a public inquiry into PNG’s mining laws on a commission from the PNG government. His comprehensive recommendations for reform were incorporated into entirely new mining legislation, the Mining Act 1992. The BMA is obviously based in part on the PNG Mining Act 1992.

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Miriori Says Bougainville Executive Council Was Misled

Philip Miriori (ABC News: Eric Tlozek)

Post Courier | June 18, 2019

The Autonomous Bougainville Government (ABG) Executive Council were allegedly misled at the time it resolved to support the developers proposal and consequential mass amendments demanded to the Bougainville Mining Act (BMA).

The Explanatory Memorandum that has emerged, long after the fact, claims in its first two principal reasons, that developer has developed and operated some of the largest mines in the world.

It now turns out that neither reason advanced was correct.

The truth is starkly different – the developer in question has never financed, developed or operated a large mine, to say nothing of the largest mines in the world.

Philip Miriori the Chairman of Panguna landowner company, Special Mining Lease Osikaiyang Landowners Association (SMLOLA), indicated that, had the amending legislation passed, Bougainville would have given away a 4o per cent interest in Panguna and a monopoly over all large scale mining projects in Bougainville, to a person who does not have the relevant skills to finance, build and operate a mine like Panguna or help the ABG.

“The third reason advanced was even more false and misleading, as it claimed that the developer had also raised billions of dollars and so will raise all the money for Panguna for the ABG.

“The developer obviously has not raised billions of dollars as claimed, in fact he has only ever done one public company capital raising of a very modest US$30m, again more than a decade ago.

“So the three key reasons the BEC resolved to support the developer, that he had financed, developed and operated the largest mines in the world.

“And put forward the proposed changes to the BMA, which have now been rejected by the Legislative Review Committee because they were all grossly false and designed to deceive all of us here in Bougainville,” he said.

SMLOLA consultant Lawrence Daveona said the scenario suggest to us is that we all need to sit down collectively and find a workable solution.

“This is a solution that can actually be delivered and will allow us to finally move forward with the redevelopment of Panguna to eventually see all of Bougainville prosper,” he said.

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Bougainville: Australia positions itself as chief new coloniser ahead of referendum

The controversial Panguna mine which land holders are fighting to stop being re-opened for foreign profiteers.

Susan Price | Green Left Weekly | June 14, 2019

A spokesperson for the Bougainville Hardliners Group has called on the Autonomous Bougainville Government (ABG) to explain why the Australian Federal Police (AFP) were at the controversial Panguna mine site in central Bougainville on June 5.

AFP officers were seen taking GPS readings at the abandoned copper mine site. James Onartoo, a former leader of the Bougainville Revolutionary Army, said the community has a right to know why they were there and what they were doing.

“I think the public is owed an explanation as to what is happening,” said Onartoo. “To the best of my knowledge the AFP were ousted in 2007 on suspicion of spying on the ABG and the people of Bougainville by the former President, late Joseph Kabui.”

He suggested that their presence could be linked to the mine’s controversial reopening.

“Their presence at Panguna, which is the site of so much controversy and disagreements plus issues of sensitive nature stemming from proposed reopening by ABG, raises serious questions considering the fact that, in the past, Australia has always supported military intervention by the Papua New Guinea Defence Force to regain control of the mine.”

Onartoo said if the AFP can raid the ABC, “they are capable of anything”, including gathering intelligence “for the purpose of regaining control of Panguna and restarting the mine with use of force”.

The June 11 ABC Radio Pacific Beat said the AFP confirmed that members from the Papua New Guinea-Australia Policing Partnership did visit the site to “undertake an assessment of capability development for support to the Bougainville Police Service”.

Onartoo said Australia’s interest in the mineral deposits at Panguna has never declined. He has criticised Australia’s advice that the ABG prioritise mining over agriculture, tourism, fishing and other sustainable industries.

Several companies, including of Australian origin, are vying to reopen the Panguna mine, which was shut down in 1990 after a brutal battle against mostly indigenous landholders who received none of the huge profits generated by the mine. More than 20,000 people were killed during the 10 year civil war.

The Bougainville Hardliners Group has been actively resisting attempts by the ABG to weaken the Mining Act to give foreign companies exclusive rights to large-scale mining. It opposes further large-scale mining in the autonomous Papua New Guinea region, saying the focus should be on sustainable alluvial mining.

Bougainville is scheduled to hold its independence referendum in October under the terms of the 2001 peace agreement. The referendum outcome then has to be ratified by the PNG parliament.

The ABG has expressed its desire to reopen the Panguna mine.

Legislation to amend the Mining Act is currently being debated in the PNG parliament. According to landowners, the proposed amendments would effectively remove customary ownership of minerals and remove landowners’ veto rights over mining projects.

Onartoo has said that Bougainville’s 350,000 people do not need large-scale mining, and that the changes being proposed are in breach of sections 23 and 24 of Bougainville’s constitution as well as the Mining Act which provides protection from a repeat of “the ownership of minerals on the island by colonisers”.

A report by Papua New Guinea Mine Watch in January said Australian businessperson Jeffrey McGlinn of Caballus Mining is pushing for the act to be amended. A Radio New Zealand report said McGlinn “wanted to shortcut a number of what it calls complicated requirements in the act to fast track vital infrastructure development in Bougainville and boost employment ahead of the referendum”.

However, other reports suggest that he is more focussed on seizing control of major mineral deposits across Bougainville ahead of the referendum.

The Osikaiyang Landowners group has referred the government’s mining plans to the Papua New Guinea Ombudsman.

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MPs call for delay on Bougainville mining amendment

Radio New Zealand | 12 June 2019

A Bougainville parliamentary committee wants controversial legislation on mining to be delayed until after the autonomous Papua New Guinea region’s independence referendum.

The Bougainville government wants to amend the Mining Act, and two other bills, to give it greater control over mining activity.

The autonomous government said these changes would give landowners more control over their resources but there has been widespread opposition across Bougainville.

The plan to set up a company called Bougainville Advance Mining in association with newly set up Australian business, Caballus, sparked an outcry.

The Speaker of the ABG Parliament referred the matter to a Committee on Legislation, which undertook public consultations, before reporting back this week.

The committee says the Mining bill raised a lot of issues around landowners’ rights.

It worried about the creation of monopolies and the impact of the bills on the Constitution and the Peace Agreement.

It said all three measures needed further consultation before being re-drafted and submitted after October’s referendum.

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Caballus Deal Is ‘Smoke And Mirrors’

Jeff McGlinn of Caballus Mining giving a presentation in Bougainville

Post Courier | June 11, 2019

The McGlinn Caballus presentation to the Autonomous Bougainville Government totally contradicts the Bougainville Mining Minister’s recent statement that appeared in the Post-Courier (May 7, 2019) that Bougainville Advance Mining Limited, is not McGlinn’s Caballus.

The original draft bills introduced to the House of Representatives and sponsored by the Bougainville Mining Minister Raymond Masono, specifically referred to Bougainville Advance Mining Limited.

Searches of the Registry of Corporate Affairs in the British Virgin Islands confirms that the Bougainville Advance Mining Limited was approved for incorporation on August 8, 2018, and the Certificate of Incorporation was issued and dated August 9, 2018.

The incorporation certificate confirms the BVI Company Number for Bougainville Advance Mining is 1988673.  The directors and shareholders were not disclosed.

The off shore company is incorporated by Intershore Consult (BVI) Ltd.

Their web site interestingly states that Intershore is a wealth management firm specialising in tax planning, virtual offices and nominee services, among other things.

Philip Miriori, the chairman of the Panguna Landowners Association – the Special Mining Lease Osikaiyang Landowners Association (SMLOLA) asked the question, as to why is the Mining Minister Masono now trying to hide the fact that Caballus is behind Bougainville Advance Mining Limited?

“Everyone knows this is a McGlinn incorporated shelf company and the Autonomous Bougainville Government (ABG) has undertaken to give McGlinn 40 per cent in this entity and Panguna for free.

“The ABG has told everyone including our ABG MPs for months this.

“While the BEC – Special Meeting No.2 of 2019, Decision No.3 of 2019, dated January 28, 2019, confirms the BEC formally endorsed the assent of the bills and the issuance of a Special Bougainville Mining License to Bougainville Advance Mining Limited in respect of the whole of Bougainville.

“Similarly, the Bougainville Executive Council special meeting No. 1 of 2019 dated January 24, 2019, recorded the formal approval of Bougainville Advance Mining Ltd (BAM) for the purpose of carrying out all mining activities in Bougainville, approved the establishment of BAM.”

SMLOLA advisor Lawrence Daveona also chimed in to say that it is totally unacceptable to be trying to steal Panguna from the customary owners.

And further transfer Panguna to this highly secretive off shore BVI entity. “This Caballus deal is smoke and mirrors.” he added

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Akoitai Is Firmly Against Amending Of B’ville Mining Act

Patrick Makis | Post Courier | May 2, 2019

Central Bougainville MP Sam Akoitai is opposed to the amendments to the Bougainville Mining Act being proposed by the Autonomous Bougainville Government.

Mr Akoitai said this when addressing representatives from the nine landowner associations of the Panguna mine-affected communities last week in Arawa.

He said the ABG is trying to amend the Act when the current legislation had not been tried and tested since its enactment in 2015.

“What is wrong with the current act? Many commentators, including Bougainvillean leaders, said the Mining Act was unique after it was enacted,” Mr Akoitai said.

“What happened to this uniqueness that requires the amendments?”

Mr Akoitai said the proposed amendments would create an “uneven playing field” in the mining industry in Bougainville.

“As a former mining minister in the national government, I have never come across an Act tailored specifically to suit one particular developer,” he said.

“You must tell your constituency members not to support these changes on the floor of parliament.”

Mr Akoitai said the 60/40 per cent equity arrangements being proposed under the amendments was impractical.

“People supporting this 60/40 arrangement are fooling themselves,” he said.

“How will Bougainville come up with money to fund its equity when currently it can’t even deliver services due to shortage of funds?

“Let’s be practicable and test out the Bougainville Mining Act in its current form first before we start making amendments.”

Mr Akoitai told the affected communities that he wanted to see unity among the landowners.

This is especially for the special mining lease group, before he would be ready to talk with potential investors over the re-opening of the mine.

“I am calling on the landowner associations to remain intact and the unification of the SML factions. We have to be united so we can secure a better deal when dealing with investors,” he said.

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MASONO DEFENDS A DRACONIAN EDICT

Bougainville Indigenous Rights Advocate | 3 May, 2019

The article in the Post Courier, “Masono defends Bougainville Mining Amendment” dated 30/04/19, shows that Jeffrey McGlinn has certainly struck some deep chord in the heart of the cream of ABG politicians and bureaucrats a comprising of the President Dr. John Momis, Vice President Masono himself, Finance Minister Robin Wilson and the Mining Department Secretary, Cedric Himata.

In the article, Vice President open’s his “Che Guevaraic” delivery with the profound word “revolution”. What a choice of word to cloak the assault on the human rights of the landowners, to serve the interest of a foreigner who has dazzled the El Presidente’s gullible inner circle with a ridiculous promise of 60 percent share equity in a dubious Bougainville mining company, which obviously is already registered in the British Virgin Islands.

It is disheartening to see Vice President defending amendments that were written outside Bougainville by McGlinn’s lawyers obviously after going through the Bougainville Constitution and the Bougainville Mining Act 2015 (BMA 2015) with a fined tooth comb, hoping to find irregularities on which to base their absurd justification to amend a law that protects customary rights of landowners.

If the ABG is trying to use a flaw in the BMA 2015, conjured up overseas by foreign lawyers, to take control of ownership of the resources then landowners will be losers all over and again. In reality, Jeffrey McGlinn is trying to gain monopoly by duping the ABG with offer of fairy-tale 60 percent share equity which will decrease in value due to it’s incapability to raise funds. The consequence is such that the dilution of the shares in inevitable.

In the article Vice President Masono is quoted as saying:

“It is time now that we take the bull by the horn.

“We’ve been made to believe that only the white man and foreign companies can do mining for us.

I find this somewhat disturbing, because ABG after all has struck a deal with a “green man” Jeffrey McGlinn who mislead ABG about his companies extensive experiences in mining when “Caballus” was only founded recently.\

If the Vice President doesn’t already know, “Caballus” is poetic latin word for horse. That is what Jeffrey McGlinn is. A failed “white as snow” horse breeder.

Lastly, Vice President Masono’s revolution is debauchery and contravenes section 23 (1) which provides “The laws and policies of Bougainville shall be directed towards the recognition of customary rights of the people of Bougainville in relation the land and the sea, and natural, mineral and oil resources of Bougainville and any law relating to the development of such resources shall take that into account.”

Notice that the section says “Customary” Rights of the people. Landownership is customary in Bougainville and the BMA2015 specifies that.

This is ownership is further reinforced by Section 53 of the national Constitution of Papua New Guinea which talks about the protection from unjust deprivation of property. This is the very protection that is under threat from the ABG’s proposed amendment to BMA 2015.

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