In the year ahead I look forward to working with the
Autonomous Bougainville Government to resolve issues
associated with the mine past and future. I believe a
mutually beneficial agreement can be worked out that
will benefit landowners, the Government and company
shareholders. As I have said before I think it is better to
get the process right than fast track it and fail. I am
pleased at the progress that has been made. Bougainville
has entered a new phase and elected a young and
dynamic person to lead it. I look forward to a period of
increased co-operation and engagement with the
Government and landowners. Together I believe we can
renew the economic prosperity Bougainville once had.
This time it is anticipated there will be greater local
ownership and profit sharing if the mine is redeveloped.
If the opportunity arises BCL has identified exploration
targets to be tested. It has also completed a
comprehensive redevelopment study that indicates
potential for an economic operation over 15-20 years.
Further studies will be needed to get to a “bankable”
level of certainty that the mine is economically viable. The
costs associated with those studies are high so they
won’t be undertaken until a rigorous consultation
process with landowners and Government is complete
and there is general agreement on the mine’s future and
the terms under which it can operate.
Our vision to return to active exploration and profitable
mining remains but is dependent on Bougainville
communities reconciling issues and living in harmony.
Normalisation of society and in particular the disposal of
illegal guns is a priority. Ongoing civil unrest and
restrictions to free movement inhibit the ability to govern
and improve the living standards of all citizens.
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 the Foundation has more than 50
Bougainville students on scholarships. It also provided
text books for the schools in the Panguna area. Many of
the Foundation’s former scholars are working in the
community and contributing to the development of
Bougainville.
Although the current global economic slowdown
presents challenges for the company and the country,
both are in good financial shape and well placed to take
advantage of the upswing when it arrives. I am optimistic
that strong leadership on Bougainville will drive
redevelopment to the mutual benefit of all.
Peter R Taylor
Chairman & Managing Director.
5 March 2009
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