Australia's Bougainville Copper falls on Panguna moratorium report (updated)

Bougainville Copper

27/12/2017 02:26

(Adds background, share movement) 
    By Devika Syamnath 
    Dec 27 (Reuters) - Bougainville Copper Ltd  BOC.AX  shares 
fell on Wednesday following a report that the government of the 
Pacific island of Bougainville plans to impose a moratorium on 
mining or exploration at Panguna, once one of the world's 
biggest copper mines. 
    Bougainville Copper has been working to restart the mine, 
which was shut by a civil war in 1989. 
    Bougainville President John Momis said the island's 
executive council decided to impose the indefinite moratorium 
after landowners narrowly failed to support a plan to reopen the 
mine, the New Zealand-based Asia Pacific Report said on Dec. 23. 
    "We will not allow this project once again to reignite the 
wounds of the Bougainville crisis and distract our focus for 
restoring peace and our preparation for our referendum in 2019," 
the report quoted Momis as saying. 
    The Autonomous Bougainville Government could not be reached 
for comment.  
    Bougainville Copper said in a statement it was seeking 
clarification from Bougainville's Department of Minerals and 
Energy Resources about the report.  
    Bougainville's quarter of a million people are tentatively 
scheduled to vote on independence from Papua New Guinea in June 
2019. Revenue from the reopening of the Panguna mine is 
essential for the otherwise impoverished island.  urn:newsml:reuters.com:*:nL3N1KG2JB 
    There has been a struggle over who will run the mine between 
Bougainville Copper, backed by the Bougainville and Papua New 
Guinea governments, and a consortium of Australian investors 
supported by the head of the landowners. 
    The abandoned copper and gold mine contains one of the 
world's largest copper deposits. During its 17-year life until 
the closure in 1989, Panguna was credited for generating almost 
one-half of Papua New Guinea's gross domestic product. 
    Bougainville Copper's shares tumbled as much as 17 percent  
on Wednesday, compared to a 0.4 percent rise on the Australian  
benchmark  .AXJO , giving the company a market value of about 
A$90 million ($70 million). 
 
($1 = 1.2937 Australian dollars) 
 
 (Reporting by Devika Syamnath in Bengaluru; editing by Richard 
Pullin) 
 ((Devika.Syamnath@thomsonreuters.com; +91 80 6749 1130; Reuters 
Messaging: Devika.Syamnath.thomsonreuters.com@reuters.net)) 
 
Keywords: PAPUA MINING/BOUGAINVILLE