Reviving the mothballed mine is imperative to generating sufficient state revenue to “make greater progress towards autonomy and our choice about independence,” ABG President Morris said during a speech to the Bougainville House of Representatives in August.
A referendum on the region’s independence from Papua New Guinea (PNG) is planned within the next six years.
BCL estimates Panguna contains more than three million tonnes of copper reserves and could produce 400,000 ounces of gold per year. Restarting the mine would require an investment of five billion dollars with potential revenues estimated at more than 50 billion dollars.
Bougainville has an estimated population of 300,000 and potential direct employment of only 2,500 has been suggested with the ratio of local workers not identified.
Since 2010 the Bougainville government has established a framework for landowner consultations and conducted stakeholder forums across the island to assess public opinion, claiming these indicate a green light for mining.
Thirteen of 65 participants in the Jubilee study said they would support the extractive industry under certain conditions: after Bougainville has achieved independence in order to minimize foreign interference; after compensation and reparation are delivered; and after other forms of economic development, such as agriculture, have been explored.
“There has been anecdotal evidence that mining consultation forums have so far been geared too heavily towards advocacy. A significant number of participants felt the landowner associations were not relaying a popular consensus from their respective communities,” State Crime Initiative’s Lasslett claimed.
Miringtoro, the parliamentarian from Central Bougainville, told IPS that he was “satisfied that the 65 people interviewed were a fair and representative sample of the people who are totally against mining. [They] are from village communities situated all throughout mine and tailings area … which has been changed into a moonscape with arable land buried under tonnes of silt and rock.”
The state and corporate sectors promote mining revenues as necessary for growth and poverty reduction on Bougainville where many people live without basic services, such as a clean water supply, electricity and medical services. The province has 10 doctors serving more than a quarter of a million people; less than one percent of people are connected to electricity; and life expectancy is 59 years.
However, the record so far in Papua New Guinea is that economic dependence on the extraction of minerals, such as copper, gold and nickel, over the last 30-40 years, with GDP growth reaching 11 percent in 2011, has not resulted in development for the majority of citizens.
Forty percent of the population of seven million live below the poverty line, only 12 percent have access to electricity, adult literacy is 50 percent and malnutrition is high with stunting prevalent in half of all children, reports the United Nations Children’s Fund (UNICEF).
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