War of words over distribution of mining shares

PAPUA NEW GUINEA – Landowners around the site of the Panguna mine in central Bougainville are to meet with their provincial president, John Momis, this Friday to discuss the furore surrounding the Rio Tinto mine shares.

Rio Tinto has given away its shares in the operator of the Panguna mine, Bougainville Copper Ltd (BCL).

The bulk has gone to the Autonomous Bougainville Government and the balance to the Papua New Guinea government – but Prime Minister Peter O’Neill sparked controversy by regifting them to the landowners at Panguna, instead of the provincial government.

That move sparked a war of words among the political leaders but the chairperson of the Arawa-Siokatei-Loloho landowning group, Therese Jaintong said the landowners are yet to talk about the share issue.

“For me, I really want to see, to ask landowners and the governments of Papua New Guinea and the ABG to really be talking together – but the good thing is we will be meeting with president Momis on Friday in Buka.

“So we are preparing the landowners to speak with the president and come up with our positions I suppose. I don’t know yet.”

Momis said the move by the national government threatened the Bougainville peace process and his government could pull the mining company’s exploration licence, making the shares worthless.

The province hoped to reopen the mine as a way to generate revenue should it vote to become independent from PNG after a referendum scheduled for 2019.

In response O’Neill said Momis was trying to manipulate the peace process for political gain and warned him not to play politics over the shares.

O’Neill said his government is serious about empowering communities and giving Bougainville’s landowners and the people direct control over any future mine developments.

He added that this transfer of shares further strengthens the confidence of Bougainvilleans in the peace process.

- RNZI/PNC