Trading Bougainville Copper (ADRs) 867948

http://bougainville.typepad.com/newdawn/2010/03/...tion-violence.html

BY ALOYSIUS LAUKAI

With two weeks left to the issuing of writs for the second Autonomous Bougainville Government elections, election-related violence has begun to occur.

At the weekend, supporters and employees of a senior ABG Minister physically assaulted a senior Administration officer and intending candidate, resulting in the man being admitted to Buka Hospital with serious wounds.

He is now recovering at home.

ABG President James Tanis condemned the attack and said that such action by Ministerial staff was shameful and should not occur again.

He said such actions will not help the Minister as the victim might win on sympathy votes.

Mr Tanis says he is also concerned at how the people of Bougainville will stay united and work together after the election is over.

He said that as a bridge builder he is not worried about who wins the election, but only that leaders will work together after the election.

He challenged the women of Bougainville to continue to work together after the election.

Mr Tanis said in the last twelve months he had done a lot of travelling to try and bring peace and reconciliation throughout Bougainville and with the leaders of PNG.

He said that he wants to see his bridge building efforts strengthened after the election.

Hört sich gut an, im Prinzip ist dies die Bestätigung der Infos, die wir bereits zusammengetragen haben. Was wir brauchen ist Tanis als wiedergewählter Präsident und den Abschluß der Wahlen der Landowner, dann kann mit den BCA-Verhandlungen offziell begonnen werden. L.D. war sogar noch etwas optimistischer, denn er meinte, die Verhandlungen könnten sogar noch vor den wahlen beginnen.

www.asx.com.au/asx/statistics/...&timeframe=D&period=W


Bougainville Copper Agreement (BCA)

Although a formal review of the BCA has not started
there is ongoing dialogue between the National
Government and Bougainville Government about the
future of the Panguna ore body and government
responsibility for mining. There is increasing
acknowledgement among stakeholders that
Bougainville’s economic future needs mining if it is to be
able to fund even basic services from its own resources.
If the Panguna mine is to reopen the Bougainville Copper
Agreement and related legislation need to be amended
to accommodate changed circumstances and provide
certainty for all concerned. There is also general
agreement that negotiations are needed even if there is
not yet agreement on the agenda and process.
Landowners’ representation at any negotiations is critical
but there is still work to be done on landowner
reconciliation and the formation of a united landowner
representative body. The process is underway to hold
elections among landowners to form a new combined
landowner group that will provide a united voice at the
negotiating table. Those elections are due to take place
in early 2010. Another important event in the lead up to
formal negotiations is the election of a new President of
Bougainville for a 5 year term. This will be a crucial
election for the company because the next 5 years is the
period in which the mine should be reopened to take
advantage of the resurgence in mineral commodity prices
and demand. The company will need the support of the
new President and the cabinet as well as landowners.
Funding and sovereign risk assurance for the project will
require a united effort. There will need to be a fair and
stable mining regime that gives investors the confidence
needed to commit to a project that will cost in the order
of US$3 billion.


Bougainville

The World Bank initiative aimed at helping Bougainville
develop capacity to manage its mining sector continues
and there is a good chance the transfer of mining
powers to Bougainville will occur this year. That is an
important step because as matters currently stand there
is an expectation of transition but no certainty. Hopefully
the new Bougainville mining regime will be largely
consistent with the National model to assist with a
smooth transition from old regime to the new. The BCA
is National Government legislation and needs to be
accommodated in any new mining regime for
Bougainville. Although I believe it is important to take the
time to get the new mining regime right it is also
necessary for all parties to drive the process as hard as
possible so the current promising signs for improved
world economic growth are not missed. It is remarkable
that the global outlook for mineral resources has
rebound so quickly from the gloom I reported last year.
What has happened illustrates just how susceptible the
industry is to outside forces. Bougainville does not have
the luxury of choosing economic cycles and needs to
take the opportunities as they arise.
The improved world economic demand for minerals has
put the company’s largest shareholder, Rio Tinto Limited,
which is part of the Rio Tinto Group of Companies (Rio
Tinto), into a new growth phase. A recent senior
management change at Rio Tinto has resulted in Andrew
Harding being appointed head of the global copper
portfolio. Andrew knows PNG and in my talks with him
he has recognised the opportunity at BCL and its vision
to reopen the Panguna mine in a manner consistent with
the Bougainville Peace Agreement. This endorsement is
very welcome and is encouraging given management’s
enthusiasm to study a mine restart once the peace
process has been resolved. Rio Tinto will be of great
assistance to BCL in providing world class technical
expertise and mine development experience.


Visit to Buka

An important step to a closer engagement between the
Bougainville Government and BCL occurred last year
when the President of Bougainville issued a formal
invitation to the company to send a representative to
Bougainville. The company accepted the invitation and
the Company Secretary undertook a two-day courtesy
visit during which he met the President, Ministers and
senior administrators. The meetings were cordial and
resulted in broad agreement on a range of subjects the
Government and the company need to jointly explore.
The company looks forward to further positive dialogue
with the incoming President and Cabinet.


Year Ahead

I look forward to working with the incoming President
and Cabinet of the Autonomous Bougainville
Government. I hope the election process runs smoothly
and allows everyone to go on with the important task of
rebuilding Bougainville.
By the time the President is elected the mine area
landowners should have formed a new landowner
association and elected their representatives. Once both
these matters are finalised negotiations with the
company over the future of the Panguna ore body can
start formally.
There has been no further technical work carried out
since the “order of magnitude” study and the
exploration study I detailed last year. The next step, a prefeasibility
study on reopening the mine, is a very
expensive exercise that won’t be started until there is
greater certainty that the Government and landowners
support redevelopment. I hope that during the year
certainty will come and the Board will approve the next
phase of restart studies. The vision to return to active
exploration and profitable mining remains but requires
strong support from local stakeholders. The Board and
management team are committed to the vision.
BCL is continuing to support the work of the Bougainville
Copper Foundation. This is an independent, “not for
profit”, company that has been funded by BCL since its
inception. This year, as in previous years, the Foundation
has funded scholarships for more than 100 Bougainville
students. It also undertakes “special projects” on a needs
basis with the emphasis being 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.
It is pleasing that the global economic slowdown appears
to be over and that the mineral sector is making a rapid
and they strong recovery. This should be a year of great
opportunity for BCL and Bougainville; the company is
ready to move forward.