Papua New Guinea turns down copper cartel

Press, Volume CXV, Issue 33819, 16 April 1975, Page 24

Papua New Guinea turns down copper cartel

<New Zealand Press Association —Copyright)

PORT MORESBY.

Papua New Guinea has turned down informal approaches from the cartel of copper exporting countries to co-operate in an international production cut-back to raise copper prices.

■ C.1.P.E.C., the Inter- r i j Governmental Council of i Copper Exporting Countries, || i is reported to have extended r (its latest invitation in Paris, < iwhere Papua-New Guinea is I ; attending a cartel meeting as i an observer. i Zambia, Peru. Chile, and i I Zaire had made several informal approaches in the past, jail of which had been polite!v ' (declined. “Thev have consistently:' been told that a formal ap-

.proach would be to no avail ■until the country was independent,” said the spokesman. “That remains the policy of the Government, and no formal approach has been made.” I Proposals for production cuts were unlikely to be en-: tertained with anv relish by! Papua-New Guinea, since its | entire economy was founded ,on revenue from Bougainville : copper. “Any suggestion that would involve a cut in Papua-New Guinea’s revenue would not be welcome,” the spokesman [said. jt cou ld be shown that

10 per cent reduction in production could force a 15 per cent rise in revenue, we would be interested, but so far C.I.P.E.C. has given us no indication that it is capable of this.” The government is seeking finance from the World Bank to develop the Ok Tedi which it took over from Kennecott Copper after the breakdown of talks.'There are proven reserves of 150 million tonnes of 0.9 per cent copper at the site.