Source:
The National,Friday July 1st, 2016
Bougainville President John Momis is disappointed with Rio Tinto’s decision to transfer its 53.8 per cent share in Bougainville Copper Ltd (BCL).
International mining giant Rio yesterday transferred its BCL shares to an independent trustee, for distribution to the ABG (36.4 per cent), and the PNG Government (17.4 per cent). PNG is already the second largest BCL shareholder.
It means the share distribution would see the two governments – ABG and PNG – have equal BCL shareholders at 36.4 per cent each.
The remaining 27 per cent of shares are held by small shareholders. Rio Tinto has been reviewing its BCL shareholding for almost two years. The review resulted in Rio deciding to end its investment in BCL, which ran the giant copper and gold mine at Panguna from 1972 to 1989, under the 1967 Bougainville Copper Agreement (BCA).
Momis said Rio Tinto had made a unilateral decision.
“It failed to consult the Bougainville Government about distributing its shares,” he said.
“At meetings with senior Rio officials in July 2015 and February 2016, I warned strongly against the transfer of Rio’s shares to PNG.
“Bougainvilleans cannot accept the (PNG) Government control over the future of Panguna through either majority or equal shareholding in BCL,” he said. “We are open to PNG remaining a BCL shareholder.
That may assist us find responsible partners and financiers for possible future operations at Panguna. But we cannot accept Rio Tinto’s interference in seeking to give PNG equal control over Panguna.
“There is no possibility of progress on resolving the future of Panguna on that basis.
“Rio Tinto has shown arrogance in ignoring my warning. Sitting in their comfortable London offices, they have interfered in Bougainville’s affairs by deciding PNG should have equal control of BCL.
“Bougainvilleans are united in rejecting what Rio Tinto seeks to thrust upon us.”
He was also angry at Rio Tinto’s refusal to accept responsibility for the environmental and other damage done by the Panguna mine.
“In past meetings, I insisted that Rio accept responsibility for mining legacy issues,” he said.
“When I met their officials in Port Moresby, they flatly rejected any responsibility for their contribution to the damage done by the Panguna Mine. Rio’s officials gave me two reasons – Rio operated under the PNG law of the day and second, they were forced out of Panguna by the conflict.
“But the truth is Rio Tinto generated huge revenues from what we all now know was the terrible injustice of its Bougainville mining operations. The mine shut down in 1989 because anger over that injustice generated demands for a renegotiated agreement. “It’s now clear the BCA was deeply unjust. It ignored environmental damage and social impacts. Only a tiny share of mine revenue was distributed to landowners and to the North Solomons provincial government.”
He said he was writing to the managing director of Rio Tinto asking him to reconsider not only the Rio decision about its shares, but also its refusal to deal with its Panguna legacy responsibilities. “I am writing to the International Council of Metals and Mining asking them to end Rio Tinto’s membership because of its failure to honour the ICMM’s 10 Principles for Sustainable Development Performance.” He is seeking a meeting with Prime Minister Peter O’Neill to discuss how best to defuse the dangerous situation created by Rio’s decision.
BY GORETHY KENNETH
GLOBAL miner Rio Tinto announced yesterday that it was relinquishing ownership of the Panguna Mine on Bougainville – a move which was met with mixed reaction in Papua New Guinea.
Bougainville President John Momis expressed anger at the "unilateral" decision while in Port Moresby the Prime Minister’s Office and the Attorney-General’s Office said they will respond to the announcement later.
Mr Momis said he was angry at Rio Tinto’s refusal to accept responsibility for the environmental and other damage caused at the Panguna copper mine in Central Bougainville by Bougainville Copper Limited (see separate story).
BCL company secretary Mark Hitchcock, who is based in Port Moresby, announced Rio Tinto’s decision to the Australian Stock Exchange Limited saying its shares will be transferred to an independent trustee.
He said that the board of directors are presently considering the consequences of this action as it may affect the company and was taking appropriate advice regarding the matter.
BOUGAINVILLE President John Momis has expressed deep anger at Rio Tinto’s refusal to accept responsibility for the environmental and other damages caused by the Panguna Copper mine in Central Bougainville.
This comes as Rio Tinto announced it is divesting its shares in Bougainville Copper Limited, former operator of the mine.
Mr Momis met with two Rio Tinto officials in Port Moresby on Wednesday in what has been described by an insider as a "very tense meeting".
Mr Momis said yesterday that in previous meetings he had insisted that Rio Tinto accept responsibility for mining legacy issues.
"When I met their officials last night (Wednesday) in Port Moresby, they flatly rejected any responsibility for their contribution to the damage done by the Panguna Mine," he said.
"Rio’s officials gave me two reasons for not accepting responsibility for mine impacts. First, Rio operated under the PNG law of the day. Second, they were forced out of Panguna by the conflict.
"But the truth is Rio Tinto generated huge revenues from what we all now know were the terrible injustice of its Bougainville mining operations."
Mr Momis said that the mine shut down in 1989 only because anger over that injustice generated demands for a renegotiated agreement.
He said that it is now clear the Bougainville Copper Agreement (BCA) under which Panguna was operated was deeply unjust.
"It ignored environmental damage and social impacts. Only a tiny share of mine revenue was distributed to landowners and to the North Solomons provincial government.
"The gross injustice of the BCA has since been recognised by Rio. As a result it made major changes to its own policies, especially in relation to landowners.
"It accepted new standards of sustainable development as a founder of the International Council on Mining and Metals. Rio is now deeply hypocritical in its blatant disregard of the higher corporate responsibility standards it says it has adopted.
"Now Rio Tinto proposes to walk away from responsibility for the effects of the injustice of its highly profitable operations.
The President said he will be writing to the managing director of Rio Tinto asking him to reconsider not only the Rio decision about its shares, but also its refusal to deal with its Panguna legacy responsibilities.
"I am also writing to the International Council of Metals and Mining asking them to end Rio Tinto’s membership because of its failure to honour the ICMM’s10 Principles for Sustainable Development Performance," he said.
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Outrage over BCL shares
BOUGAINVILLE President John Momis is furious at Rio Tinto’s "unilateral" decision to transfer its 53.8 per cent stake in Bougainville Copper Ltd to an independent trustee and involving Waigani as an equal majority shareholder.
The trustee Equity Trustees Limited will distribute the shares between the National Government and the Autonomous Bougainville Government so that both will have 36.4 per cent shares each in the Panguna mine. The National Government already has a 19 per cent stake.
The remaining shares are held by small shareholders in Europe.
PRESIDENT Momis said yesterday that Rio Tinto had failed to consult his Government about distributing its shares. "At meetings with senior Rio officials, in July 2015 and February 2016, I warned strongly against transfer of Rio’s shares to PNG. Bougainvilleans cannot accept National Government control over the future of Panguna through either majority or equal shareholding in BCL," he added.
He said Bougainville is open to PNG remaining a BCL shareholder, saying it could assist in finding responsible partners and financiers for possible future operations at Panguna.
"But we cannot accept Rio Tinto’s interference in seeking to give PNG equal control over Panguna. There is no possibility of progress on resolving the future of Panguna on that basis.
"Rio Tinto has shown arrogance and ignorance in ignoring my warning. Sitting in their comfortable London offices, they have interfered in Bougainville’s affairs by deciding PNG should have equal control of BCL.
"Bougainvilleans are united in rejecting what Rio Tinto seeks to thrust upon us."
He said he would be seeking "the earliest possible meeting with Prime Minister O’Neill to discuss how best to defuse the dangerous situation created by Rio’s decision on its shares in BCL."
Rio Tinto has been reviewing its BCL shareholding for almost two years. The review resulted in Rio deciding to end its investment in BCL, which ran the giant copper and gold mine at Panguna from 1972 to 1989, under the 1967 Bougainville Copper Agreement (BCA).
The President also expressed deep anger at Rio Tinto’s refusal to accept responsibility for the environmental and other damage done by the Panguna mine. (see separate story)
