28.11.2010

Source: ESBC press release 20101128

BCL Shareholders Welcome Breakthrough!

The European Shareholders of Bougainville Copper (ESBC) welcomed the breakthrough achieved by the Panguna landowners on their conference in Buka (Bougainville) : "We are very satisfied on the meeting's outcome," said ESBC President Axel G. Sturm on Sunday evening in Bangkok, "This gives Bougainville the chance to recover financially from all suffering in the last twenty years. I am very grateful to the Minister of Bougainville Affairs, Hon. Fidelis Semoso that he finally pushed things cogently forward by organizing this conference. We are also glad that the Autonomous Bougainville Government assisted this important act." Furthermore Mr. Sturm outlined that he appreciates very much Mr. Semoso's courage to face this sensitive issue without any prejudice or fear. As the local network Radio New Dawn on Bougainville reported on Sunday the re-opening of the world class Panguna mine has been scheduled for the end of 2011. "Next year will already bring giant investment to the island and many people who are jobless now will soon find work, "said Mr. Sturm, "this makes me very happy especially for the young generation on Bougainville who will take benefit of the decisions on this historical week-end."

Comments

[joachim]

Comments on Mining and Gathering of Landowners

To me it is a sign of confidence and trust in the leadership of Bougainville for them to have taken the initiative to bring landowners together to reach some mutual agreements regarding the possibility of reopening mining on Bougainville. It is not in the best interest of the region to avoid facing pressing issues in the region because of the perceived sensitivities. As Socrates said, "an unexamined life is not worth living." Let there be nothing to be glossed over. At their right time let us examined the issues in an educational way so that the people who own the land on which resources like minerals exist will also understand and join development efforts of the government in appreciation of the common good. I believe leadership is acting together and that is very good. Few points are in order:

1. If all goes well and mining reopens, BCL will need to take its corporate social responsibilities seriously. The notion of profit making as the sole objective of a private firm is now regarded as part of an old fashioned orthodox economic teaching carried over from the period of industrial revolution in Feudal Europe in the 17th-19th centuries. I understand that BCL and the government has shared some responsibilities in providing basic social services before the Civil War. However, I suppose as some would argue, this was more of an enclave type of development found in developing countries in places where major profit making firms conduct their activities. It is still far from clear at this stage what terms and conditions will be struck by BCL, the government and the landowners. If BCL comes, it needs to partner with the government in bigger ways, i.e. in bigger infrastructural projects.

3. The government of Bougainville must make wise decisions, acting with hindsight and foresight. Invest money from mining in well planned areas guided by whatever vision of development it sets as Fr. John Koran reasoned well in his reflections. If we had already developed our development plan, we would know where mining fits in our order of priorities in serving our objectives, goals and vision, especially in the longer term.

4. The most important areas in Bougainville right now are agriculture, education and health. I understand that while the government is legitimately concerned in the short term about building capacity to get things going in the region, it must also be adequately concerned about agriculture, which as commonsense tells, is first of all, because parents will need to earn money to send their children to school. Most of them will have no money to send their children to school if they are not doing agriculture. At the right time when the financial situation of the government improves significantly, it must do all it can to lift the profile of agricultural farming in the region, perhaps use a signifant portion of the money that is going to be generated from BCL's second coming to lift the profile of agricultural farming in the region. Otherwise, in the longer term, the second coming will be in vain.

5. Yes, we can trust. There are figures in the government who are part of the historical socio-political and economic developments in the region. Therefore we would expect that any decision regarding mining will be made in the light of the past and mistakes avoided. We would certainly be complete fools who have never learned from history if we take the wrong step and see history repeat itself. Ultimately, it is the people who matters. It is okay for them to agree or not to agree but they must be enlightened on what is happening.

joachim Lummani
Curtin University
Perth, WA 6845
Australia