Pacific island Bougainville's independence path relies on economy, says PNG's Marape

Bougainville Copper

11/12/2024 03:21

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      Bougainville seeks international investors to reopen
copper mine
    

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      PNG PM Marape supports economic independence efforts
    

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      Bougainville Copper Limited projects $36 billion revenue
over 20
years
    

  
    By Kirsty Needham
       SYDNEY, Dec 11 (Reuters) - Bougainville must be able to
fund at least half of its budget if the Pacific archipelago's
aspiration of political independence from Papua New Guinea is to
be a success, PNG Prime Minister James Marape said on Wednesday.
    Bougainville President Ishmael Toroama is seeking
international investors to re-open one of the world's biggest
copper mines, with Marape backing his authority on Wednesday to
make business decisions on the mine as the autonomous region
travels a pathway to independence.
    Bougainville was PNG's economic powerhouse for two decades
until 1989, when a bloody civil war erupted over revenue from
Panguna, the world's third-biggest open cut gold and copper mine
and operated by Rio Tinto  RIO.L . 
    Bougainville voted for independence under a 2001 peace
process in a referendum five years ago but PNG's parliament is
yet to endorse it. A New Zealand mediator was recently appointed
on the matter.
    "We start with economic independence as a fundamental basis,
because once you have the money you are able to sustain," Marape
said at a resources conference in Sydney.
    Bougainville's internal revenue of 7% was not sufficient to
"get up, get going", he said. "We need to raise this at the very
earliest to about 50% of funding." 
    Toroama said significant progress had been made this year in
redeveloping Panguna, with a copper exploration licence issued
in January to Bougainville Copper Limited (BCL), majority-owned
by the Bougainville government. 
    BCL has projected revenue of $36 billion from the mine over
20 years, with copper an essential input for renewable energy.
    An environmental and social impact assessment on Rio Tinto's
legacy mining operation delivered this month was also a key step
in re-opening the mine, Toroama said.
    "We have to further sign an MOU with Rio Tinto and
Bougainville Copper Limited for commencement of works of ageing
infrastructure that pose imminent and severe risks to affected
communities and further the talks," he said.
    The original mine's strong revenue flows to PNG came at the
expense of local communities and the local environment,
resulting in civil unrest exacerbated by political factors that
led to a war costing 20,000 lives, Toroama said.
    "Bougainville continues to stand out as a lesson, a warning,
a reminder of what not to do in resource sector development," he
added.

 (Reporting by Kirsty Needham; Editing by Nicholas Yong)
 ((Kirsty.Needham@thomsonreuters.com;))