www.postcourier.com.pg/20061211/news03.htm
Papua New Guinea’s Government expects to agree to terms with Bougainville authorities next year to lift a moratorium on mining in the battle-scarred island and resume operations the following year.
“Give us two years and mining will restart in the Panguna mine,” Mining Minister Sam Akoitai told Dow Jones Newswires on Tuesday.
Anglo Australian miner Rio Tinto Plc shut the massive Panguna copper and gold mine in May 1989 after repeated attacks on infrastructure and workers by secessionist rebels.
Speaking on the sidelines of a PNG mining conference in Sydney, Mr Akoitai said both the Bougainville Autonomous Government and foreign investors were keen to resume activities in the minerals-rich island of Bougainville once fiscal arrangements were agreed on. “Bougainville is a place where every man and woman will swim across to,” he said, when asked about the current level of investor interest.
“I’ve been approached by many many companies who are interested in doing exploration in Bougainville and also companies interested in talking about Panguna,” he said.
“But my approach would be I'd rather work with the devil I know than getting somebody new to come in and start again,” he said, referring to Rio Tinto subsidiary Bougainville Copper Ltd.
“I’ve had the opportunity to work with Bougainville Copper for nine years and think they're doing a very good job.” Besides holding the position of Mining Minister, Mr Akoitai is also the parliamentary member for Central Bougainville, the electorate which includes Panguna.
The Panguna mine produced about 180,000 tonnes of copper a year to rank as the world's third-largest copper mine.
It remains closed despite a 1998 cease-fire and the formation of an autonomous island government.
Any decision on resuming mining at the dismantled operation is estimated would cost around $US 1 billion. Before any decision can be taken, however, stakeholders must complete a review of new fiscal and operating terms for exploration and mining on the island, Mr Akoitai said.
The long-delayed review process is expected to begin in the first quarter of next year and take "months" to complete, he said.
The benefits for Bougainville would have to be significantly better than current terms, he told the wire service.
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