Bougainville Presentation on Mining Progress in Madang

Leonard Fong Roka

A three day community relations workshop for mining areas held at the Madang Lodge from the 12 to 14 of August saw Bougainville represented for the first time in such a gathering of high level mining talks where mining officials turn to share each other’s experiences with locals and the industry around them.

Bougainville had a team of four officers from the Autonomous Bougainville Government (ABG) mining division lead by former mining engineer Mr. Joseph Pangkau who is now the director of the Development & Coordination Division of the ABG department of mining who cordially invited me to attend the meeting.

In a half full conference room, the team highlighted the mining experience on Bougainville; the mining created conflict; suffering of the landowners in Panguna before the conflict; the suffering Bougainville economy and the political future of the island and ABG wishes for the re-opening of the mine and the costly exercise of working towards the possible re-opening.

Mr. Joseph Pangkau firstly highlighted the history of the ABG Department of Mining. The department, he said, was created in the Bougainville Peace Agreement (BPA), the Bougainville Constitution and the PNG Constitution which directs to give Bougainville several powers that include mining, oil and gas.

On 16 November 2006, PNG agreed to give Bougainville powers on mining, oil and gas in a 15 Stages Strategic Framework. Thus the mining department was created to cater for these powers. So far, stages 1 and 2 have being reached and currently they are in stage 3 that is Negotiations for Panguna Mine.

For the ABG, the question of ‘why re-opening Panguna mine’ was answered with 5 points. Firstly, Mr. Pangkau said that Panguna has proven and known minerals; secondly, the mine life is known; thirdly, Panguna infrastructure is there and needs only maintenance; then, Bougainville economy will be stimulated with commencement of construction and lastly, he said that ABG needs to be fiscally self reliant to run its affairs.

He claimed that lessons of the past about the mining operation at Panguna are at the heart of the ABG. Thus landowners will be the major players in the decision making over the mining this time around with equitable benefit sharing and effective environmental impact management scheme.

Currently the ABG is focused on, (1) establishing landowner associations, (2) running public forums to collect Bougainville-wide opinion, (3) facilitating baseline study of Panguna mine areas, (4) assessing consultancy work relating to technical evaluations/feasibility studies, etc, (5) conduct studies in mineral resource/ore body modeling of Panguna and (6) conduct financial modeling and economic, budgeting, etc.

He stated that so far, Panguna has 9 landowner associations of which 6 are well set up and functioning. All these have an umbrella body, The United Panguna Resource Owners Association that will be the key player in the re-opening negotiations with each having a start-up funding from the ABG.

ABG has now the duty to support landowners and their association establishments; capacity building of these associations; preparing these groups for negotiations; recruitment of advisors and consultations with BCL, ABG and the PNG government.

ABG has also committed itself to wider consultations across Bougainville. It had run consultative forums in Central, North and South Bougainville. He said that these all-inclusive forums as roughly cost around K300 000 kina of the public funds each. All, he said, had run for about two days each and attendance and participation real positive.

To face the PNG government, the two governments had several structures in place, he admitted. On the 17 October 2012, Joint Panguna Negotiation Coordination Committee (JPNCC) was established under the Joint Supervisory Body. JPNCC comprises of ABG, BCL, landowners and the PNG government.

In August 2012 a joint ABG and National Government Scoping Mission conducted a study to determine the type of “baseline studies” that will need to be conducted to provide information on environmental, social & economic conditions of the people in Panguna. Terms of Reference (TORs) for social and environmental baseline studies   are in progress through the JPNCC.  

One important issue of negotiation under JPNCC is the ‘Bel Kol’ money issue. This is a kind of an appeasement that must be paid to Bougainville for it is not only the Panguna people that have suffered in the conflict before BCL attempts to return. Forms of payment however were not reached as yet.

There was also a negotiation structure in place. Bougainville Executive Council (BEC) approved a Negotiation Structure to ensure input into negotiations by all Bougainvilleans, and specific opportunities for input by groups including landowners and ex-combatants. Overall direction for negotiations will be provided by a Negotiation Forum made up of the President, Vice President and ABG Ministers; Landowners, ex-combatants; and senior ABG officers. This is an all inclusive structure that will ensure that the views of all Bougainvilleans are represented.

Challenges to the ABG are showed to be, (1) Institutional Capacity of the ABG Department of Mining, (2) Preparations for and conduct of Negotiations; (3) Funding estimated K15 million per annum that only donors are helping with and (4) Bougainville mining legislations that need educated Bougainvilleans to help.

Finally he did concluded the presentation with a few significant remarks about Bougainville history that after the Panguna uprising it is evident that companies throughout the country are putting more emphasis on the social license to operate; the ABG wants to make sure that this time around, affected and impacted landowners play a key role in decisions about the mine. And all Bougainvilleans know what is going on and have an opportunity to express their views and concerns; and that due to the conflict the process is both unique and complex with valuable lessons learned so, with the right information; Bougainvilleans will reach a decision on the future of the mine.