Rio Tinto class action over Bougainville mine damage set for October hearing

Bougainville Copper

23/07/2024 07:24

MELBOURNE, July 23 (Reuters) - The first hearing date
has been set in a class action against miner Rio Tinto  RIO.AX 
for historical environmental and social damage caused by the
Bougainville copper mine in Papua New Guinea that it operated in
the 1970s and 1980s, lawyers said.
    The first court hearing will take place in Papua New
Guinea's capital Port Moresby on Oct. 10, according to lawyers
representing the claimants.   
    "We are committed to advancing the action against Rio Tinto
and BCL on behalf of the class," said Matthew Mennilli, partner
at Sydney-based law firm Morris Mennilli in a statement. "We
hope to empower claimants after their voices were unheard and
ignored for so many years."
    BCL, or Bougainville Copper Ltd  BOC.AX , ran the Panguna
mine in which Rio Tinto held a majority stake. The mine ceased
operations in 1989 when related disputes spiralled into a civil
war lasting for a decade.
    A Rio Tinto spokesperson confirmed that it had been served
with a class action and that it was reviewing the details of the
claim. "As this is an ongoing legal matter, we are unable to
comment further at this time," he said. 
    Rio Tinto in 2016 transferred its 53.8% stake in BCL to the
Autonomous Bougainville government and the Papua New Guinea
government for no amount.
    The miner in 2022 began work to assess the mine's legacy,
hiring an independent group to assess the impact and consult on
next steps. It is due to report back to Rio this year. 
    Class actions are increasingly being used by affected
populations as a way to access higher compensation from
resources companies for damaging events.
    More than 720,000 Brazilians, including 46 local
governments, are suing BHP  BHP.AX  and Vale  VALE3.SA  in a
potential 36 billion pound ($46.5 billion) lawsuit over the 2015
collapse of the Mariana dam.
    The class action against Rio Tinto is much smaller. It is
made up of a majority of villagers in the affected region of
Bougainville. A further 1,500 people have joined the class
action since it was filed with 3,000 claimants in May.
    They are seeking compensation for "historical mismanagement
of the Panguna Copper Mine, which caused large scale
environmental and social harm," according to the statement.
($1 = 0.7738 pounds)

 (Reporting by Melanie Burton; Editing by Jamie Freed)
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