Bougainville Copper
Encyclopedia
Bougainville Copper Ltd is an Australian copper
, gold
, and silver
mining company that operates the Panguna
open cut
mine on the island of Bougainville
in Papua New Guinea
(PNG). It was one of the world's largest open-pit mines. The Panguna mine dominated the economy of the island during the 1970s and 1980s. It also was highly significant to the overall PNG economy: In the 1970s and the 1980s the company's tax and dividend payments added up to approx. 20% of PNG's national budget.
CRA Ltd is an Australia
n company which in turn was dominated by the British
mining company Rio Tinto Zinc
.
The mine was vitally important to the economy of Papua New Guinea, but the people of Bougainville were seeing little benefit from it. The PNG national government received a 20% share of profit from the mine of which the Bougainvilleans received 0.5% - 1.25% share of the total profit.
The mine is a massive surface mine. Bougainvillean leaders alleged that the mine had devastating environmental consequences for the island. They also claimed that Bougainville Copper had set up a system of apartheid on the island, with one set of facilities for white workers, and one set for the locals. They accused Bougainville Copper Ltd., of being responsible for poisoning the entire length of the Jaba River, and causing birth defects, as well as the extinction of the flying fox on the island.
The first Bougainville independence movement began to arise in the late 1960s, as people began to air their grievances against the Australia
n colonial government over the handling of the Panguna mine. Australian External Territories Minister Charles Barnes
was accused of telling the Bougainvillean people they would "get nothing". The issue of compensation went to the High Court of Australia, where it was found that the compensation was inadequate under ordinary federal Australian law, but that as an external territory, Papua New Guinea was not guaranteed the same standards that applied to mainland Australia.
The mine closed in 1989 as a result of sabotage by the Bougainville Revolutionary Army
and associated forces, which sought Bougainville's secession
from PNG and an end to the mining on environmental grounds.
The mine nowadays remains closed but rumors about reopening the mine recently proved to be true with the BCL Managing Director Peter R. Taylor stating to be interested in reopening the Panguna mine. At the beginning of March 2006 first negotiations between Rio Tinto Group and the PNG Mining Minister Sam Akoitai have been confirmed. However, since the Panguna mine is located on land controlled by secessionist King David Peii II (Noah Musingku
), the opening of the mine by Australian and PNG interests remains unlikely.
Bougainville Copper Ltd. furthermore holds 7 additional mining licenses on Bougainville which currently remain under a mining moratorium.
During the company's annual meeting in May 2008 and brokered by the President of the European Shareholders of Bougainville Copper (ESBC), Axel G. Sturm, landowners from Panguna expressed their desire for BCL to return to the area. This move can be considered as a key step towards the reopening of the Panguna mine.
Joanne Dateransi has stated publicly that the landowners, of who she is one, do not now or ever want the mine reopened. This interview went out live on blufm.org on 25 March 2009. The reasons given were the irresponsibility of the mining company, the environmental damage they caused, and the attempted genocide of the traditional landowners, which ensued once the mine had been closed. Joanne is in fact the owner of the land which the Panguna site is located on, and any claims that landowners want the mine reopened should be treated with suspicion and caution.
In his first statement on Radio Australia Pacific Beat on 8 June 2010 the newly elected President of Bougainville, John Momis, declared that the Panguna mine has to be reopened to assure economic growth of Bougainville in the future.
The intent of King David Peii II, who controls the area of the mine, seems to be to keep the mine closed, but use its in-ground assets to back international trade programs benefiting Bougainville.
arising from the environmental damage caused by the mine and war crimes occurring during the civil war years. In August 2006, the United States Court of Appeals for the Ninth Circuit
rejected Rio Tinto's effort to dismiss the claim. See Sarei v Rio Tinto, 456 F.3d 1069 (9th Cir. 2006).
Copper
Copper is a chemical element with the symbol Cu and atomic number 29. It is a ductile metal with very high thermal and electrical conductivity. Pure copper is soft and malleable; an exposed surface has a reddish-orange tarnish...
, gold
Gold
Gold is a chemical element with the symbol Au and an atomic number of 79. Gold is a dense, soft, shiny, malleable and ductile metal. Pure gold has a bright yellow color and luster traditionally considered attractive, which it maintains without oxidizing in air or water. Chemically, gold is a...
, and silver
Silver
Silver is a metallic chemical element with the chemical symbol Ag and atomic number 47. A soft, white, lustrous transition metal, it has the highest electrical conductivity of any element and the highest thermal conductivity of any metal...
mining company that operates the Panguna
Panguna
Panguna is a town and a copper mine on Bougainville Island, Papua New Guinea. By the end of its operations on May 15, 1989 it was the largest open-cut mine in the world; it was also a major catalyst in the unrest in Bougainville in the 1970s and 1980s.- See also :* History of Bougainville*...
open cut
Open-pit mining
Open-pit mining or opencast mining refers to a method of extracting rock or minerals from the earth by their removal from an open pit or borrow....
mine on the island of Bougainville
Bougainville Island
Bougainville Island is the main island of the Autonomous Region of Bougainville of Papua New Guinea. This region is also known as Bougainville Province or the North Solomons. The population of the province is 175,160 , which includes the adjacent island of Buka and assorted outlying islands...
in Papua New Guinea
Papua New Guinea
Papua New Guinea , officially the Independent State of Papua New Guinea, is a country in Oceania, occupying the eastern half of the island of New Guinea and numerous offshore islands...
(PNG). It was one of the world's largest open-pit mines. The Panguna mine dominated the economy of the island during the 1970s and 1980s. It also was highly significant to the overall PNG economy: In the 1970s and the 1980s the company's tax and dividend payments added up to approx. 20% of PNG's national budget.
Shareholder structure
Major shareholders are Rio Tinto (53.6%), Papua New Guinea (19.1%) and the European Shareholders of Bougainville Copper (ESBC) with approx. 4%. The remaining freefloat of 23% is held by private investors, many of which live on Bougainville Island.History
The mine at Panguna was opened by CRA Ltd. under armed Australian police protection.CRA Ltd is an Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
n company which in turn was dominated by the British
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
mining company Rio Tinto Zinc
Rio Tinto Group
The Rio Tinto Group is a diversified, British-Australian, multinational mining and resources group with headquarters in London and Melbourne. The company was founded in 1873, when a multinational consortium of investors purchased a mine complex on the Rio Tinto river, in Huelva, Spain from the...
.
The mine was vitally important to the economy of Papua New Guinea, but the people of Bougainville were seeing little benefit from it. The PNG national government received a 20% share of profit from the mine of which the Bougainvilleans received 0.5% - 1.25% share of the total profit.
The mine is a massive surface mine. Bougainvillean leaders alleged that the mine had devastating environmental consequences for the island. They also claimed that Bougainville Copper had set up a system of apartheid on the island, with one set of facilities for white workers, and one set for the locals. They accused Bougainville Copper Ltd., of being responsible for poisoning the entire length of the Jaba River, and causing birth defects, as well as the extinction of the flying fox on the island.
The first Bougainville independence movement began to arise in the late 1960s, as people began to air their grievances against the Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
n colonial government over the handling of the Panguna mine. Australian External Territories Minister Charles Barnes
Charles Barnes
Charles Edward "Ceb" Barnes was a long serving member of the Australian House of Representatives who served as a Minister under five prime ministers....
was accused of telling the Bougainvillean people they would "get nothing". The issue of compensation went to the High Court of Australia, where it was found that the compensation was inadequate under ordinary federal Australian law, but that as an external territory, Papua New Guinea was not guaranteed the same standards that applied to mainland Australia.
The mine closed in 1989 as a result of sabotage by the Bougainville Revolutionary Army
Bougainville Revolutionary Army
The Bougainville Revolutionary Army was formed in 1988 by Bougainvilleans seeking independence from Papua New Guinea .BRA leaders argue that Bougainville is ethnically part of the Solomon Islands and has not profited from the extensive mining that has occurred on the island...
and associated forces, which sought Bougainville's secession
Secession
Secession is the act of withdrawing from an organization, union, or especially a political entity. Threats of secession also can be a strategy for achieving more limited goals.-Secession theory:...
from PNG and an end to the mining on environmental grounds.
The mine nowadays remains closed but rumors about reopening the mine recently proved to be true with the BCL Managing Director Peter R. Taylor stating to be interested in reopening the Panguna mine. At the beginning of March 2006 first negotiations between Rio Tinto Group and the PNG Mining Minister Sam Akoitai have been confirmed. However, since the Panguna mine is located on land controlled by secessionist King David Peii II (Noah Musingku
Noah Musingku
Noah Musingku, reigning as King David Peii II, is the king of the Twin Kingdoms of Papaala and Me’ekamui on Bougainville Island in the North Solomon Islands...
), the opening of the mine by Australian and PNG interests remains unlikely.
Bougainville Copper Ltd. furthermore holds 7 additional mining licenses on Bougainville which currently remain under a mining moratorium.
During the company's annual meeting in May 2008 and brokered by the President of the European Shareholders of Bougainville Copper (ESBC), Axel G. Sturm, landowners from Panguna expressed their desire for BCL to return to the area. This move can be considered as a key step towards the reopening of the Panguna mine.
Joanne Dateransi has stated publicly that the landowners, of who she is one, do not now or ever want the mine reopened. This interview went out live on blufm.org on 25 March 2009. The reasons given were the irresponsibility of the mining company, the environmental damage they caused, and the attempted genocide of the traditional landowners, which ensued once the mine had been closed. Joanne is in fact the owner of the land which the Panguna site is located on, and any claims that landowners want the mine reopened should be treated with suspicion and caution.
In his first statement on Radio Australia Pacific Beat on 8 June 2010 the newly elected President of Bougainville, John Momis, declared that the Panguna mine has to be reopened to assure economic growth of Bougainville in the future.
The intent of King David Peii II, who controls the area of the mine, seems to be to keep the mine closed, but use its in-ground assets to back international trade programs benefiting Bougainville.
US lawsuit
Citizens of Bougainville have filed a class action lawsuit in the United States against Rio TintoRio Tinto Group
The Rio Tinto Group is a diversified, British-Australian, multinational mining and resources group with headquarters in London and Melbourne. The company was founded in 1873, when a multinational consortium of investors purchased a mine complex on the Rio Tinto river, in Huelva, Spain from the...
arising from the environmental damage caused by the mine and war crimes occurring during the civil war years. In August 2006, the United States Court of Appeals for the Ninth Circuit
United States Court of Appeals for the Ninth Circuit
The United States Court of Appeals for the Ninth Circuit is a U.S. federal court with appellate jurisdiction over the district courts in the following districts:* District of Alaska* District of Arizona...
rejected Rio Tinto's effort to dismiss the claim. See Sarei v Rio Tinto, 456 F.3d 1069 (9th Cir. 2006).