12 Oct 2023

Bougainville govt plans changes to mining act

5:45 pm on 12 October 2023
The Panguna copper and gold mine in Bougainville was closed down for operations in 1989 at the start of the civil war.

The Panguna copper and gold mine in Bougainville was closed down for operations in 1989 at the start of the civil war. Photo: RNZ / Johnny Blades

The Bougainville government wants changes to the Papua New Guinea's autonomous region's Mining Act.

That measure in 2015 gave landowners control of the minerals extricated from six inches below the surface of their land, which was much celebrated by the John Momis government at the time, has faced frequent criticism since being passed.

The advocacy group, Jubilee Australia, had said in 2015 that the Mining Act gave with one hand and took away with the other.

Later attempts to then change the measure drew complaints and protests from both landowners and potential foreign investors, particularly those eyeing a re-opening of the long closed, but potentially very profitable, Panguna Mine.

Now the government of President Ishmael Toroama said subsequent events have necessitated changes, not least of which is the government becoming the majority owner of shares in Bougainville Copper Ltd, the company that had been operating the Panguna Mine.

The government also said there is a need for the Act to reflect that a levy is being placed on all gold leaving the region - a nod to the success of the alluvial gold sector.

It also wants the royalty levies it receives to increase, while landowner equity entitlements would also go up.

As well, a more sophisticated tender process would be put in place, removing the First Come - First Served provision; the area covered by an exploration licence would be reduced, and fees and rents would be raised, taking into account global standards, inflation and so on.

When the matter came up for debate in the parliament on Tuesday in Buka, local reports said police stopped a planned protest from taking place.

Meanwhile in the House, Toroama, who is now also minister of mining, was critical of the groups opposed to the planned changes.

He said they are misleading people.

The president also told Parliament there would be no change to the provisions on landowner rights to the minerals on their land, nor are there any plans to replace landowner consent with government consent.

He said the government will be taking a tough stance against "foreign elements who are meddling with the government's affairs by creating distrust, disunity and instability on Bougainville".