http://www.bougainvillecopper.com.pg/
Bougainville Copper Limited
2009 is seen as the most promising year in two decades for preparatory work leading to a possible re-commencement of operations at the Panguna minesite, owned and previously operated by Bougainville Copper Limited.
With copper reserves estimated at almost 3 million tonnes and gold production in the range of 400,000 ounces per annum, Panguna remains as potentially one of the world's largest producers of both metals. Unexplored neighbouring tenements are also very prospective, and will be explored when a moratorium on exploration is lifted.
Present market values for both copper and gold are significantly higher than at the time of mine closure in 1990, the political situation on the island has stabilised, and there is considerable appetite for development being expressed by the people of Bougainville . BCL is seen by many as the preferred operator of a re-started mine, and holds a very large bank of mine data. A comprehensive Order of Magnitude study was commissioned by BCL in 2008 (See separate item), and in January 2009, an invitation was issued by the incoming President of the Autonomous Bougainville Government Mr James Tanis for BCL management representatives to visit the island.
The Board has operated a comprehensive rolling plan with the vision of returning to active exploration and profitable mining in PNG. The main focus is on gaining resolution of a taxation issue, commencing the Bougainville Copper Agreement Review, preparation in the event the exploration moratorium is lifted, communication with stakeholders, and the completion of environmental studies and a mine asset stock take.
It is expected that the Bougainville Copper Agreement re-negotiations will be actively pursued in 2009 and make significant progress. If the main stakeholders are to gain mutual economic benefit from Bougainville 's mineral potential a proper framework needs to be put in place. Variations in copper and gold prices indicate that opportunities need to be taken up without undue delay
During the year more work will be undertaken evaluating the findings of the Order of Magnitude study, and preparing for the possible lifting of the moratorium on new exploration and mining. It is intended to identify targets within the company licences and how best to manage an exploration program. That may involve entering into an exploration agreement with others. Work will also continue to ensure that the extensive mine database the company holds is able to be utilised quickly and effectively if a return to mining at Panguna is agreed.
The PNG Mineral Resources Authority (MRA) is now in operation, to act as a statutory authority managing and regulating the industry. BCL works closely with MRA, and expects that the Authority will play an active and guiding role in facilitating the Bougainville Copper Agreement re-negotiation.
A communications plan has been developed. Now that circumstances on Bougainville have changed and exploration and mining are being openly debated, the company wishes to publicly project its position on key issues affecting it.
An important component in achieving the vision will be an environmental plan that is not only based on best practice but also meets the expectations of the local community. Work will continue to identify the key issues and solutions. Access to the mine site and surrounding areas of previous operations will be welcomed, to assist the environmental assessment and future planning. The company has made known to both the Autonomous Bougainville Government and the National Government of Papua New Guinea its willingness to conduct safety and environmental audits on the island as soon as access can be facilitated.
Existing mine assets have not until now been accessible to the company, and to understand the present value of these assets and the extent to which they may be used for future mining and exploration, access to the mine site is needed. For this BCL welcomes the support expressed by local landowners and will continue to work alongside them, and give practical assistance to the processes of reconciliation and social stability. BCL welcomes the growing consensus of landowner support for resumed exploration and mining, expressed in regular dialogue with landowner leaders.
Bougainville Copper Limited (BCL) is owned 53.58% by Rio Tinto Limited . The Papua New Guinea Government owns 19.06% while public shareholders hold the remaining 27.36% of the share capital. Since the previous withdrawal of employees from the island, a small management team has operated in Port Moresby . This team is incorporated into Rio Tinto Minerals (PNG) Limited ( RTM ), a wholly owned subsidiary of Rio Tinto Limited. BCL has a management service agreement with Rio Tinto . RTM performs this agreement on behalf of Rio Tinto .