An ill wind blows in Bougainville

By PNG Echo

A cold political wind is blowing on the islands of Bougainville that’s fuelling a cold war.

This wayward wind, which was downgraded to a tropical breeze at the cessation of hostilities in the bloody civil war on Bougainville at the end of the 1990s, has never been tamed but held in check by a peace agreement signed by most of the warring parties.

The Promise

The car ferry in the capital of Buka - at present, peace reigns
The car ferry in the Bougainvillean capital of Buka – at present, peace reigns

The keystone of the accord was the promised plebiscite for an independent state, to take place within 20 years of the agreement. The promise effectively took the wind out of the sails of the immediate call for independence, just as surely as Federation did similarly to the Republican movement in Australia at the beginning of the 20th Century.

This future vision watered down many Bougainvilleans’ commitment and backing for the Me’ekamui State, (declared during the hostilities by the rebels). Within Me’ekamui dwell the more militant Bougainvillean rebels. Me’ekamui refuses to die.

The possibility of independence without bloodshed was an attractive proposition for many who had lived through the war; who had suffered its deprivations and lost loved ones – as brother fought against brother.

It was the proverbial pot of gold at the end of the rainbow, analogous with the biblical ‘promised land’ for those that had also suffered the loss and pollution of their precious lands at the hands of foreign interests that were supported by a government who were prepared to sacrifice Bougainville and Bougainvilleans on the altar of national economic interests.

As the twenty-year time frame enters its final years, all the old wounds that the peace agreement managed to stitch together are being torn apart by the same old issues – for they were never resolved, just postponed.

The Panguna copper mine is the single most pressing of those issues and the peace agreement did not address it at all or any of the concerns over mining in Bougainville. The sensitivity of the issue, that had been the catalyst for the civil war, was the elephant in the room that needed to be ignored to effect an agreement – and it was. But, like M’ekamui, it never went away.

Bougainvillean independence and Panguna are irrevocably interlinked

Panguna – to mine or not to mine

A flower blooms in Panguna.
A flower blooms in Panguna.

When the Bougainville rebels shut down Panguna in 1989, it was supplying PNG with 45% of its national export revenue and was the single biggest contributor to the economic viability of the Independent state of Papua New Guinea hence the national government’s interest. It was also the biggest polluter and cause of unrest on the island of Bougainville.

The issues surrounding Panguna were the causal link to the beginning of the hostilities – with the rebels closing the mine and the PNG Defence force being deployed to Bougainville to open the mine – forcibly if necessary. The rebels didn’t budge. There followed, on Bougainville, nine years of war that included a blockade and that pitted the PNG Defence Force against its own people.

Even though the war has been over now for almost 20 years, Panguna has never re-opened, although it’s potential output and profitability remains unchanged. There is wealth in Panguna of unrealised proportions estimated to be in the vicinity of 5 million tonnes of copper and 19 million ounces of gold.

That the mine has been closed for so long is a testimony to just how polarising the issues still are – the mine is considered a jinx.

The author in Panguna
The author in Panguna

I have visited Panguna, it’s eerie: there is a chill in the air that is not explained by the weather, I was glad to leave. Having been there, I can well understand the sentiments of a populace far more prone to the belief in the supernatural than I.

Nevertheless, to expect that it will remain closed is not realistic for if Bougainville opts for independence without reopening Panguna, how will the new State sustain itself?

This notwithstanding, none of the main actors in the cold war that’s developing, many of whom are the mandated leaders of Bougainville, have yet been willing to nail their colours to the mast about the mine’s future. But if there is a Bougainvillean, economic Holy Grail, this is it. Politically, it’s a poison chalice.

Into the fray recently, whipping up the already restless political air currents, has come mining giant Rio Tinto, who had controlling stock in Bougainville Copper Limited (BCL), the company that worked Panguna copper mine until its forced closure by the rebels in 1989 – BCL still holds the lease although its mining rights were downgraded to that of an exploration licence, after the new Bougainville Mining Laws were enacted in 2014.

In an interesting piece of timing, (why now?) Rio Tinto has gifted all of their shares in BCL: some to the PNG government and some to the Autonomous Bougainville Government (ABG – autonomy being another condition of the peace agreement).

The ‘gift’ has pitted these potential protagonists against each other and managed to seemingly divest Rio Tinto of all further responsibility to clean up their mess.

While the gift of the shares to the ABG comes with all the controversy surrounding Rio Tinto’s stubborn refusal to effect reparations, both it terms of repatriation of the mining site and compensation – the shares gifted to the PNG government have the added controversy of having been gifted to an inappropriate entity.

BCL shares

Prime Minister, Peter O’Neill, has recognised that the PNG government is not the correct recipient of the BCL shares: that they rightfully belong to Bougainville. In a politically provocative move, he announced he would re-gift these shares to the affected landowners of Panguna but not through their political representatives, the ABG, but directly –there is 17.4% of the company in the offing.

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President Momis

President Momis was not amused: the Prime Minister had decided to by-pass the ABG – Momis suggested that the Prime Minister seemed to believe that he knew better than the ABG, saying:

You substitute your view for ours.

Prime Minister O’Neill retaliated by accusing President Momis of playing “petty politics” that undermined the peace agreement.

In reality, the politics are not petty and it would seem that the Prime Minister is himself engaging in politics using a Napoleonic ‘divide and conquer’ tactic. With his action, Mr O’Neill has diluted the power of any one BCL shareholder and denied the ABG a controlling interest.

The Prime Minister of Papua New Guinea
The Prime Minister of Papua New Guinea

Being an astute politician, O’Neill would be aware that the gift is good public relations for his erstwhile flagging image. It portrays him as a benevolent and generous leader (a Bik Man, if you like) while also ensuring that some time in the future, if the mine is opened under BCL, the PNG Government can form a coalition with one or a few of the other shareholders to gain control (the PNG Government has held a 19% share interest in BCL for many years). Mr O’Neill is a master in the dynamics of coalitions.

For while Mr O’Neill justified his expropriation of OkTedi, as the right of a mandated government acting on behalf of its people, he has denied controlling interest in BCL to the ABG. He can do that because Bougainville is not yet a sovereign state (and may never be).

There are other interested parties that have weighed in on the issue too, not least of all the Minster for Communications in the national government and member for Central Bougainville, Jimmy Miringtoro.

Mp for Central Bougainville - Hon. Jimmy Miringtoro
Mp for Central Bougainville – Hon. Jimmy Miringtoro

In a press statement, Miringtoro attacked the past record of the ABG and, in particular, President Momis whose involvement in the national government goes back to 1972. (Momis was one of the drafters of the PNG constitution).

Miringtoro asserted that, from his position in the national government, Momis

…could have prevented the war if he’d been honest from the start.

The only way for Momis to make peace with the people of Panguna, according to Miringtoro, was to admit that he’d “failed them,” and he recommended that:

… the President cede control of Bougainville to someone who has the energy, commitment and vision to move Bougainville forward instead of wasting time…

The Minister reminded his readers, on two occasions, that he was a mandated leader of Bougainville – seemingly to add weight to his argument. Yet, in spite of the Minister’s stated opinion on the track record of the President, it was just last year that Momis won the Presidential election on Bougainville. It was a landslide victory.

Coming a distant second was former rebel leader, Ismael Toroama who polled 18,466 votes to Momis’ 51,382 – with such a decisive result, so who is really speaking for the people?

Such is the complexity of the Bougainville issues that a simple dichotomy between PNG and Bougainville cannot be taken for granted – for, at present the only position that can be relied upon is that PNG does not want to cede independence to Bougainville – and the irony is that it doesn’t ever have to thanks to that inadequate but temporarily effective peace agreement that gave PNG  a veto

Near Kieta - the theatre of war and of dogged resistance
Near Kieta Harbour – the theatre of war and of dogged resistance

There is, however, no doubt that Momis and O’Neill are jockeying for position as the Supremo of the Autonomous Region of Bougainville (AROB), especially considering the upcoming plebiscite and the fact that the BCL shares would prove worthless if their mining licence in Panguna is revoked – and it could be, President Momis has already threatened the Prime Minister with this consequence.

Is this a portent of things to come and is Panguna set to become the battleground?

For questions over the future of the mine remain unanswered: should it re-open? If so, when – before the plebiscite or after? …if the plebiscite is successful? …if it’s not? Which company will mine Panguna? What of the shares in BCL …and many other considerations too numerous to mention?

Independence – who wants it?

By 2019, Bougainvilleans will all have to consider this question.

We know what O’Neill thinks but we are, as yet, not aware of the position of President Momis nor of such MPs as the aforementioned Jimmy Miringtoro who may be against Momis but may still favour independence (clearly without Momis) – who knows?

PNGs Hous Tambaran (parliament)
PNGs Hous Tambaran (parliament)

In parliament last week, O’Neill highlighted how the PNG government is helping Bougainville rebuild its infrastructure (as destroyed during the war, I suppose) that he stated was needed far more urgently than independence (I am left wondering why this wasn’t attended to many years ago – is the answer because the plebiscite was not imminent then?) He also highlighted the reforms in education and health taking place on Bougainville thanks to the PNG government.

His one erroneous assertion was that a country with a population of 200,000 (Bougainville) is unlikely to be able to survive because “the economy may not be strong enough.”

Yet, the Bougainvillean copper mine Panguna, once propped up the whole of Papua New Guinea economically, of which O’Neill would be well aware. Without Panguna, in 1976, PNG independence would not have been viable. This single asset is more than able to provide a solid economic basis for a new independent state. The Prime Minister is also well aware of what re-opening of the mine under favourable conditions would mean for Papua New Guinea who still retain 19% share in BCL – and he seems to be trying to force these conditions.

PNG wants to keep Bougainville in the fold
PNG wants to keep Bougainville in the fold

It is, however, reasonable to expect that Mr O’Neill would not want Bougainville to secede – no country or nation willing cedes territory – and it might be equally reasonable to assume that, on the opposite side of the tracks, the ABG would want it – but in that assumption you’d be wrong.

It is not yet known what position the ABG favours, it seems to be sitting back waiting for the best offer – Momis vacillates. At present he is saying that the people will decide, as indeed they will – but leaders should lead from the front, not behind.

If all that is not confusing enough, we have not yet taken into account the other important and major stakeholders in Panguna, the affected landowners who are holding some of the trump cards. Do they want independence and/or the mine to reopen? Well, yes, no and that depends.

The Landowners

The gifting of BCL shares from Rio Tinto and the subsequent re-gifting of them directly from the PNG government has managed to stir up a hornets nest in Bougainville.

President Momis, Prime Minister O'Neill and head of Me'ekamui, Chris Uma - three of the main actors in the current saga
President Momis, Prime Minister O’Neill and head of Me’ekamui, Chris Uma – three of the main actors in the current saga

To resolve the situation, the ABG government called a meeting of all the landowning stakeholders ,on 26th August, with a view to obtaining a consensus that favoured the government’s position.  Momis got it. A resolution was signed by 10 parties including a signature purportedly from the Chief of Chief’s of the Me’ekamui Government of Unity (MGU).

The resolution refused the shares from the PNG government on behalf of the landowners and suggested that they gift them to the ABG instead.

In reality, there was no consensus.

By 28 August, the chairman of one of the affected landowner groups – a group that had signed the resolution, described a social media posting by a chairperson of another group that was a signatory, as being “misleading.”

In the same email he stated that Mr Philip Miriori, President of Me’ekamui did not sign the resolution supporting the ABG’s stance. This notwithstanding, there is a signature above the title ‘MGU Chief of Chiefs’ on the resolution. The signature is too long to be that of Chris Uma, it is otherwise illegible – I don’t know who signed it.

(I am becoming terminally confused about who is the head of Me’eakamui – Philip Miriori, Chris Uma, or this Chief of Chiefs that signed the resolution.)

The original aforementioned chairman finishes his email by saying:

As people mandated [there’s that word again] by our long-suffering Landowners of Panguna…we will not stand by and watch our ABG Government become a monster by convincing our ignorant people by so much sweet talk especially up to date our legacy issues are still evident on the ground.”

The legacy issues

The mine site needs repatriation - there are frequent landslides caused by the giant pit
The mine site needs repatriation – there are frequent landslides caused by the giant pit

The legacy issues consist of the reparation to the Panguna site and/or compensation that is owed for damages. Rio Tinto has not made any, nor has it offered to do so in the future.

Many of the landowners want this issue pursued vigorously.

One leader of a landowner group expressed the view that both the National Government of PNG and Rio Tinto be sued for the environmental damage but in a separate legal opinion I have sighted, addressed to some of the affected landowners, BCL is identified as the correct entity to sue.

How ironic, with this new share transfer/gift, the landowners could be potentially suing themselves and the ABG for damages, if they take up the proffered shares they would own 53% of the company.

Legal opinion to the chairman of a landowner group stated that the divestment of Rio Tinto of its interests in BCL makes the prospect of compensation unlikely and the writer goes on to warn that the share transfer potentially creates a conflict of interests between the ABG and the landowners

The interests of the ABG and the Landowners are not aligned and potentially diverge rather than converge.

Mining is, once again, polarising the people of Bougainville. How this will be resolved is anyone’s guess and throw an independence vote into the fray for good measure and there’s cause for concern.

For while some stakeholders have expressed the opinion that maintaining the peace on Bougainville is the single and most important task of the ABG in Bougainville at present, others have been far more belligerent.

Arms and the rebels
Arms and the rebels

In a recent interview with Radio NZ, John Jaintang, described as a special envoy to Mr Chris Uma the leader of Bougainville’s Me’ekamui rebel group, has accused Bougainville’s leaders of breaking the peace process by engaging with Rio Tinto and BCL.  Mr Jaintang says that “the leaders of Bougainville have gone back to bed with the enemy.”

Ominously, he goes on to state that Me’ekamui remains “outside the peace process, ” and warns that “Me’ekamui has 100% of the arms.”

In summation

There are many self-confessed mandated leaders in this melee who are refusing to lead. While the minutiae is being attended to, the big picture is being neglected.

How to vote responsibly in the plebiscite, taking into account all of the possible issues, is a vital measure to disseminate and they need to hear it from their government. They know where the national government stands but, to date, they are getting conflicting messages from the ABG.

Yet, coming through loud and clear was the special envoy from Me’ekamui whose point, if I’m not mistaken, in saying that Me’ekamui has all the guns, is that the rest of you had better watch out.

This could well be an ominous threat if O’Neill, on a successful vote of ‘yes’ to independence, decides to exercise the ultimate folly of the peace agreement: the proverbial ‘get out of jail free’ card for the Government of PNG – the right of veto over the decision. In my opinion, O’Neill will not hesitate to use it.

Having said that, clearly a ‘no’ vote would be less problematic for the Government of Papua New Guinea as it would give them the renewed mandate in Bougainville – a clear indication of their right to rule.

And so the ‘courting period’ between PNG and Bougainville intensifies. It’s a period when it’s likely that PNG, like an anxious suitor, will be especially considerate of the needs of Bougainville, even generous.

When and if Bougainville succumbs to seduction and the courting period is over, with no more political leverage left, what then?  Those who do not heed the lessons of history are doomed to repeat them.

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5 thoughts on “An ill wind blows in Bougainville

  1. A reasonable summary, Doctor, but you miss some salient points.
    First – your assertion the “…it’s output and profitability remains unchanged” is incorrect – the mine is an open cut one as your photographs depict and as you say, has not been worked since the late 1980’s. This means that the exposed copper ore has been oxidised by its exposure to the atmosphere’s oxygen, and, until holes are drilled into the face of the cuts no one can accurately estimate what the mine’s potential is. That having been said, there is also the matter of capital expenditure required to completely re-tool the whole project. However, and this would be the quid pro quo of any reputable company re-opening the mine, would be to allow it explore the surrounding acreage which is extremely prospective for further development as is the sea to the west of the island for hydrocarbons. There has been a moratorium on exploration since 1972, I think.
    You touch on the ABG’s Mining Act which turns on its head the concept of the Crown’s ownership of minerals and on which the ABG base all its policy, it is this which I believe will eventually be the greatest stumbling block to PNG/ABG negotiations when the Good and the Great of PNG realise what the flow on effect of the ideology behind the ABG Act will have in the resource rich provinces of PNG.
    The last time the winds of change blew from Bougainville to the PNG mainland, in relation to inter-provincial relations, Provincial Government was the result.
    I shall leave it at that in case I become even more disingenuous.

    • President Momis estimates that it will take K20 billion to get the mine up and working again. I am sure your “salient points” will all be taken into account by any party interested in mining Panguna – i’m not one of them. However, if you think that quantifying the profits that remain in the mine was the point – then you’ve missed it. For my purposes, it was enough to establish that the mine would still be very profitable – not how profitable. This is the minutiae that is clouding the bigger issues – not seeing the forest for the trees.
      But getting off the subject entirely, your continuing critical assessment of everything I write and your propensity to address the writer rather than the topic, suggests that you are more interested in me than the subjects I write about. I’m finding this a little creepy and would ask that you stick to the subject – I don’t need a mark out of ten.

  2. You asked “How will the state sustain itself” if the mine didn’t open. I can give you the answer in one word. BANKING. A not for profit banking system that used a gold backed currency could sustain the Nation. Interest earned from loans could be used to sustain what could possibly be the newest Nation in the world.

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