...My government, and all Bougainvilleans, oppose the transfer of shares to the PNG government. The justification advanced by Rio is at best disingenuous, as Rio is well aware that the ABG supports PNG retaining its original 19 per cent equity in BCL, which ensures that in any event PNG has an ongoing role in any major decision-making about the future of the Panguna mine. Of much greater concern is the fact that in two meetings with Rio Tinto representatives in July 2015 and February 2016, I advised in the strongest terms about the dangers to the Bougainville Peace Agreement should PNG get control of BCL through receipt of shares (should the Rio equity review result in divestment). Rio has simply ignored that advice, for equal PNG shareholding with the ABG raises the same grave dangers for the future of peace in Bougainville. Moreover, its decision on allocating shares was clearly made in close consultation with PNG, and without consulting the ABG.

As for the Panguna legacy issues, it is widely acknowledged that the mine was established and operated under grossly unfair conditions. Indeed, the current much improved corporate social responsibility and sustainable development standards under which Rio now publicly claims to operate were developed largely in recognition of the problems caused by the gross unfairness of the conditions under which it operated the Panguna mine. It is simply unacceptable for Rio to now refuse any responsibility for the long-term impacts of the operations of its subsidiary, BCL, on the basis that it met the appallingly low standards of the day…