B’ville mine re-opens

Press, 6 September 1989, Page 40

B’ville mine re-opens

NZPA-AAP Port Moresby Mining operations started at the Bougainville Copper mine at Panguna yesterday morning, said the company’s commercial manager, Mr Ken Perry. Employees were working full shifts. However it would take time to build up production capacity. “I would be surprised to see more than a tea-, spoon of concentrate come out today,” he said. The company expected to achieve a maximum of only 75 per cent of capacity for the remaining four months of the year.

The BCL mine was closed by militants on May 15. A state of emergency was declared on the island on June 26. The PNG Parliament begins a special session on Tuesday to decide on an extension of the emergency. The State of Emergency controller, Police Commissioner, Mr Paul Tohian, issued a statement earlier yesterday assuring mine employees that their security would receive the highest priority. Bougainville Copper’s management had been waiting for instructions from the Papua New Guinea Government to resume operations at the mine. Mr Perry said earlier PNG news reports that mining had resumed were not correct. The company had hoped to be operational on Monday, he said. “We just need something to show the employees there’s a bit of support out there.” Pit trucks had been checked and machinery warmed up. At least 29 people have died violently in the province since Mr Francis Ona first began a rebellion by landowners against the BCL mine in December, 1988. The majority of landowners have since agreed to a proposed Government settlement package, offering greater benefits from the mine and multimillion dollar development projects. Mr Ona’s aggressive faction of the Panguna Land Owners’ Association had demanaded kina 10 billion ($NZ19.48) compensation from the mine owners for environmental damage.

Mr Ona and his followers have now allied themselves with Cargo cultists who control the centre of the island and demanded secession from PNG.

PNG’s Prime Minister, Mr Namaliu, was again meeting Government and community leaders from Bougainville to continue discussions on a proposed 200 million kina (SNZ3B6M) development “peace” package to the province. After talks on Sunday, Mr Nanialiu said: “Progress was being made in the final stages of the drafting of a memorandum of understanding.” Bougainville Copper has also offered a 42M kina (SNZBIM) package, comprising business advisory services and subsidised equity in company-initiated community services and projects. Meanwhile, further clashes were reported over the week-end between troops and rebels on the perimeter of the BCL mine.

Shots were exchanged near the company magazine and near the outlet to the Jaba Valley tailings area.

Company officials have repeatedly said the mine will not re-open unless the Government can guarantee the safety of employees. Sources said security forces in the area had again been pulled back to the mine perimeter to allow envoys from the Kieta area council of chiefs to try to contact rebel leader, Mr Francis Ona. - Mr Namaliu has again guaranteed Mr Ona safe passage if he will attend talks on settling the ninemonths old Bougainville crisis. Troops drew back to defensive positions in May when the Government announced a 15-day truce while negotiators from the Catholic Church met Mr Ona to urge him to agree to negotiations. The militants responded on that occasion by closing the mine. Talks collapsed and security forces moved against the rebels. Joint forces commander, Colonel Lima Dotaona, subsequently announced that the minepit and the port-mine access road were secure.