Photo Credit: Mining Global
Hon. Rodney Osioco, the ABG Minister for Mineral and Energy Resources, has announced that the Bougainville Government will no longer partially lift the existing mining reservation or moratorium in selected areas of Bougainville for mineral exploration endeavours in new or "greenfield" sites until certain issues are resolved.
This is in line with a fundamental aim of Bougainville's mining strategy, which calls for a staged approach to mineral development that prioritizes long-term ecological, economic, and social sustainability above short-term profit.
Minister Osioco adds that controlling the rate of development in the mining industry is important to maintain the beneficial evolution of our social structures and cultural values, as well as the preservation of a resource base for future generations, according to the Bougainville Mining Policy.
The government is cautious in its approach to mineral development, given Bougainville's terrible mining past and recent deadly occurrences at two current exploring locations.
“Let us not forget the Bougainville Conflict too soon; we saw unrest which stemmed from unattended mine-related socio-economic and environmental grievances which eventually converged with political factors and escalated into the Bougainville Crisis”, Osioco said.
“Already I am seeing a concerning trend, I will not see a repetition of unattended escalated landowner mining-related grievances under my watch”, he said.
The government is also concerned about the lack of regulatory human resource capability in the industry.
Minister Osioco believes that mineral sector expansion should be broken down into practical, distinct, and controllable phases, allowing for the gradual development of regulatory competence.
Before allowing new greenfield project development, the ABG wants to retain its support for existing exploratory projects and allow for regulatory capacity growth.
“Let us fix existing problems, develop existing projects, put our house in order before we start creating more issues,” Osioco says.
After five years of experience, the government has recognized the necessity for modifications to current sector law. This involves the implementation of robust grievance processes that will allow the ABG to respond to and address problems presented by local communities.
“There is a need to review procedures for granting of mineral exploration licenses and other mineral licenses, particularly given that Bougainville has complex interests of land ownership, land use and land tenure in general” Osioco said.
“We are also looking at scrapping the first-come-first-served colonial mineral rights award principle where we are forced to settle for whatever investor or company first applies for an exploration licence or first comes to Bougainville and deals with landowners and public servants and leaders. First-come-first-served awarding of mineral rights encourages corruption”, Osioco said.
Giving State Entities first preference in tenement applications and, if required, using transparent processes in which investors would be asked to bid for the right to operate in Bougainville under clearly defined terms and conditions are two options.
The alternative of a transparent public auctioning procedure can attract cash-strapped investors and big miners while excluding junior speculators who frequently use questionable tactics to abuse the first-come-first-served system.
The ABG is adamant that any partial lifting of the ban for new exploration applications for new sites will only be considered once the necessary adjustments have been made and the human resources regulatory capacity situation has improved.
Reference:
Autonomous Bougainville Government website (5 July 2021). “Media Statement: ABG position on mining reservation and exploration”.
