As Rio Tinto owned company Bougainville Copper Limited (BCL) and pro mining Government Leaders still insist that the re-opening of Panguna mine is just around the corner, even the BCL shareholders seem to have some idea that they have been told stories far from the truth: At the beginning of this year the BCL shares sold at just over $2.00, now on the 10th of May they sold at only $1.28.
The European Shareholders of Bougainville Copper Limited (ESBC) had a FAIR VALUE STUDY of BCL established by Mr. Anil Bakaya, Pune, India www.buyselltips.net on May 10th, 2011.
(Mr. Bakaya is himself a major shareholder of BCL shares.)
BCL reported that with new technology available they plan to increase production levels by 30% compared to 1987.
Mr. Bakaya reveals that the mine life will be at least 14 years.
If the mine isn’t expected to last longer than 14 years, how is that going to sustain the development of Bougainville?
The proposed royalty of sales to the landowners will be 3.5%.
That is annually US $107 Million according to Bakaya’s study whilst the BCL shareholders earn US $2008 Million per year after they have paid the operating costs of US $933 Million.
What I am making out of these figures is: the announced fairer contribution of profits by BCL is only fairer in the way that landowners get a little bit, compared to the last century where they didn’t get anything at all!
BCL’s shareholders still plan to walk away with the majority of the profits, leaving a pittance to the traditional owners of the land, who will be left again with the destruction and pollution.
I am glad to see that BCL’s Chairman Peter Taylor got himself a second job by being elected the new President of Australia New Guinea Business Council. (I can’t believe they couldn’t find someone a little less biased!) He won’t have much work with BCL any more as there is no chance that Panguna will re-open under these conditions. BCL seems to think that Landowners can be tricked into thinking that mining is good for them. Their new homepage bears now the name: “bclbilongyu”, “BCL belongs to you”. I believe the figures above prove the contrary.
As new elected President Peter Taylor wasted no time and led a delegation of 19 members of the Australia PNG Business Council to Bougainville on May 19. During their visit they talked just to Business people in town and without speaking to anyone on the ground they came to the conclusion that the majority of Bougainvillians want the mine reopened. He says in his interview with Garrett from ABC Radio Australia: “I long to go back and be able to explore it more fully.”
Already in the sixties, Bougainvillians opposed the principles of large-scale mining, but it took them until 1989 to close the mine that was destroying their land and health.
This time round the Landowners will make sure their livelihood isn’t completely destroyed by letting BCL back in. Being only after monetary profits BCL can’t be trusted. BJ