Bougainville to revive overhaul of mining laws after independence referendum (updated)

Bougainville Copper

28/11/2019 02:09

(Adds further vice president quotes, details of overhaul
proposal)
    By Jonathan Barrett
    SYDNEY, Nov 28 (Reuters) - Bougainville Vice President
Raymond Masono said he will revive a plan to overhaul the
region's mining laws after its ongoing independence referendum,
which could strip the former operator of the Panguna gold and
copper project of its interests.
    The proposed changes, which have been criticised by Panguna
landowners, would also erase an interest in the project held by
the Papua New Guinea government, potentially complicating
negotiations between the two governments after the referendum.
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    Under the proposed mining law amendments, Bougainville would
take a 60% share in all projects and retain all mining licences,
leaving a 40% share that investors can bid for.
    "Panguna is the most likely project that can bankroll
Bougainville's independence from Papua New Guinea," Masono, who
is also Bougainville's mining minister, told Reuters by
telephone from the town of Buka.
    "They don't own the licence and the mine, we own it - they
come on our terms."
    He said companies like former Panguna operator Bougainville
Copper Ltd (BCL)  BOC.AX , which counts the PNG government as a
major shareholder and claims exploration rights at Panguna,
would not get "special treatment". 
    "They can only come in through the new framework. If they
have money they can invest as will other investors."
    BCL declined to comment. The PNG government did not
immediately respond to a request for comment.
    Masono said he would push for the plan to go through
Bougainville's parliament in December, after it was shelved in
the lead-up to the referendum amid a backlash from some
landowners and government members.

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Amid singing and dancing, PNG's Bougainville starts independence
vote      urn:newsml:reuters.com:*:nL8N28300G
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 (Reporting by Jonathan Barrett in Sydney; Editing by Christian
Schmollinger and Christopher Cushing)
 ((Jonathan.Barrett@thomsonreuters.com;))