Bougainville's President has firmly rejected a claim that an Australian company, Caballus Mining, will operate the Panguna mine.
Ishmael Toroama has released a statement in response to a landowner group, Panguna Tangkuúrang Chiefs, claiming that they'd given approval for Caballus.
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 company had been in talks with the Autonomous Bougainville Government under former president John Momis regarding the potential re-opening of the large copper and gold mine.
But Toroama has made a clear departure from any links with the company.
He said the idea of Caballus operating a mine on Bougainville was shelved after their failed attempt to co-sponsor amendments to mining legislation with the former Momis administration.
The President of the autonomous Papua New Guinea region said there was no current plan for a particular company to re-oen the mine.
Ismael Toroama Photo: Facebook
The Tangkuúrang Chiefs group, which does not represent all Panguna landowners, released a statement last week.
"Today, we are very happy and honoured to announce that we have chosen Jeff McGlinn and Caballus Mining, based in Perth Western Australia to be our partner in re-opening Panguna Mine and as a direct result, rebuild Bougainville for all Bougainvilleans," the statement said.
The Chiefs group said that Caballus was chosen after of a due diligence process, in which the ABG had on five separate occasions met with government officials and large corporations in Australia.
But Toroama roundly dismissed this.
"Let me make it clear that the current ABG under my Presidency is not in colluding with Caballus, RTZ, Bougainville Copper Limited (BCL) or any landowner group to redevelop the Panguna Mine at this time," Toroama said.
"Statements by companies or landowner groups with a vested interest in Panguna who claim to be working with the current ABG are false; we are not backing any company or any landowner group to reopen the mine."
The president said his government was committed to protecting landowner rights from undue influence by persons wishing to reopen the mine.
Access to Bougainville's Panguna copper mine is controlled by landowners. Vehicles going up to the mountainous mine area must first pass Morgan Junction checkpoint. Photo: Johnny Blades / RNZ Pacific
The controversial mine, which was the flashpoint which started a civil war that raged through much of the 1990s on Bougainville, was forced to close in 1989 as hostilities began.
But the former operator of the mine, Bougainville Copper Limited, estimated in 2019 that there was $US58 billion worth of mineral reserves still to be tapped.
With an overwhelming majority of Bougainvilleans having voted for independence from PNG less than two years ago in a non-binding referendum, some Bougainvilleans see the re-opening of the mine as a natural step towards economic independence.
However President Toroama cautioned that a moratorium remained in place over Panguna as well as the surrounding areas within the proximity of the mine.
"The Panguna Mine remains a very sensitive issue on Bougainville and parties wishing to reopen it must maintain a sense of decorum," he said.
Toroama said any company wishing to develop Bougainville's mineral resources be it Panguna or the exploration of a green field site must come through the proper channels.