One of the first women to hold an open seat in Bougainville, Theonila Roka Matbob, is confident she can win again.

Bougainville goes to the polls in the first week of September, and Roka Matbob aims to hold on to her Ioro seat in central Bougainville, where she is up against nine men.

The MP, who is also the Minister of Community Government, recently led the campaign that convinced multinational Rio Tinto to clean up the mess caused by the Panguna Mine.

• READ MORE: Other Bougainville election reports

RNZ Pacific asked her if she is enjoying running for a second election campaign.

THEONILA ROKA MATBOB: Very, very much, yes. I guess compared to 2020, it is because it was my first time. I had a lot of butterflies, I would say. But this time has been very different. So I am more relaxed, more focused, and also I am more aware of issues that I can actually concentrate on.

DON WISEMAN: And one of those issues you’ve been concentrating on is the aftermath of the Panguna Mine and the destruction and so on caused both environmentally and socially. And I guess that sort of work is going to continue for you?

TRM: Yes, so the work is continuing. I had three platforms when I was contesting in 2020: leadership, governance, institutional governance and the accountability on the issues, legacy issues of Panguna Mine. I thought that the third one was going to be very challenging, given that it involved international stakeholders.

But I would say that the one that I thought was going to be very challenging was actually the one that got a lot of traction, and it’s already in motion while I’m like back on the trail, defending my seat.

DW: In terms of the work that has been undertaken on an assessment of the environmental damage, the impact that the process had had, and the report that has come out, and the obligations that this now places on Rio Tinto?

TRM: The recommendations that were made by the report was on a lot of like imminent survey areas that is like on infrastructure that were built by the company back then in the operation days that is now tearing down.

And also a lot more than that, there was a call for more intrusive assessment to be done on health and bloodstreams as well for the people, but those other things and also now to into the remediation vehicle, what is it going to look like?

These are clear responsibilities that are at the overarching highest level of engagement through the what we call this process, the CP process. It has put the responsibility on Rio Tinto to now tell us, what does the remediation vehicle look like.

At the moment, Rio Tinto is looking into that to be able to engage expertise in communication with us, to see how the design for the remediation vehicle would look. It is from the report that the build-up is now coming up, and there is more tangible or visible presence on the ground as compared to the time we started.

DW: So that process in terms of the removal of the old buildings that’s actually got underway, has it?

TRM: That process is already underway, the demolition process is underway, and BCL [Bougainville Copper Limited] is the one that’s taking the lead. It has engaged our local expertise, who are actually working abroad, but they have hired them because under the process we have local content policy where we have to do shopping for experts from Bougainville, before we’ll look into experts from overseas.

Apart from that as well, one of the things that I have seen is there is an increased interest from both international and national and local partners as well in understanding the areas where the report, assessment report has pointed out.

There is quite a lot happening, as compared to the past years when, towards the end of our political phase in parliament, usually there is always silence and only campaigns go on. But for now, it has been different.

A lot of people are more engaged, even participating on the policy programmes and projects.

DW: Yes, your government wants to reopen the Panguna Mine and open it fairly soon. You must have misgivings about that?

TRM: I have been getting a lot of questions around that, and I have been telling them my personal stance has never changed.

But I can never come in between the government’s interest. What I have been doing recently as a way of responding and uniting people, both who are believers of reopening and those that do not believe in reopening, like myself.

We have created a platform by registering a business entity that can actually work in between people and the government, so that there is more or less a participatory approach.

The company that we have registered is the one that will be tasked to work more on the politics of economics around Panguna and all the other prospects that we have in other natural resources as well.

I would say that whichever way the government points us, I can now, with conviction, say that I am ready with my office and the workforce that I have right now, I can comfortably say that we can be able to accommodate for both opinions, pro and against.

DW: In your Ioro electorate seat it’s not the biggest lineup of candidates, but the thing about Bougainville politics is they can be fairly volatile. So how confident are you?

TRM: I am confident, despite the long line up that we have about nine people who are against me — nine men, interestingly, were against me. I would say that, given the grasp that I have and also building up from 2020, I can clearly say that I am very confident.

If I am not confident, then it will take the space of giving opportunity for other people and also on campaign strategies as well. I have learnt my way through in diversifying and understanding the different experiences that I have in the constituency as well.

This article is republished under a community partnership agreement with RNZ.

Bougainville, an autonomous archipelago currently part of Papua New Guinea, is determined to become the world’s newest country.

To support this process, it’s offering foreign investors access to a long-shuttered copper and gold mine. Formerly owned by the Australian company Rio Tinto, the Panguna mine caused displacement and severe environmental damage when it operated between 1972 and 1989.

It also sparked a decade-long civil war from 1988 to 1998 that killed an estimated 10,000 to 15,000 civilians and caused enduring traumas and divisions.

• READ MORE: 28 years later: NZ to host Bougainville talks for a peaceful future
• Burnham Camp – the spiritual home of Bougainville peace process – Marape
• Other Bougainville reports

Industry players believe 5.3 million tonnes of copper and 547 tonnes of gold remain at the site. This is attracting foreign interest, including from China.

Australia views Bougainville as strategically important to its “inner security arc”. The main island is about 1500 km from Queensland’s Port Douglas.

Given this, the possibility of China’s increasing presence in Bougainville raises concerns about shifting allegiances and the potential for Beijing to exert greater influence over the region.

Australia’s tangled history in Bougainville
Bougainville is a small island group in the South Pacific with a population of about 300,000. It consists of two main islands: Buka in the north and Bougainville Island in the south.

Bougainville has a long history of unwanted interference from outsiders, including missionaries, plantation owners and colonial administrations (German, British, Japanese and Australian).

Two weeks before Papua New Guinea received its independence from Australia in 1975, Bougainvilleans sought to split away, unilaterally declaring their own independence. This declaration was ignored in both Canberra and Port Moresby, but Bougainville was given a certain degree of autonomy to remain within the new nation of PNG.

The opening of the Panguna mine in the 1970s further fractured relations between Australia and Bougainville.

Landowners opposed the environmental degradation and limited revenues they received from the mine. The influx of foreign workers from Australia, PNG and China also led to resentment. Violent resistance grew, eventually halting mining operations and expelling almost all foreigners.

Under the leadership of Francis Ona, the Bougainville Revolutionary Army (BRA) fought a long civil war to restore Bougainville to Me’ekamui, or the “Holy Land” it once was.

Australia supported the PNG government’s efforts to quell the uprising with military equipment, including weapons and helicopters.

After the war ended, Australia helped broker the Bougainville Peace Agreement led by New Zealand in 2001. Although aid programmes have since begun to heal the rift between Australia and Bougainville, many Bougainvilleans feel Canberra continues to favour PNG’s territorial integrity.

In 2019, Bougainvilleans voted overwhelmingly for independence in a referendum. Australia’s response, however, was ambiguous.

Despite a slow and frustrating ratification process, Bougainvilleans remain adamant they will become independent by 2027.

As Bougainville President Ishmael Toroama, a former BRA commander, told me in 2024:

“We are moving forward. And it’s the people’s vision: independence. I’m saying, no earlier than 2025, no later than 2027.

“My benchmark is 2026, the first of September. I will declare. No matter what happens. I will declare independence on our republican constitution.”

Major issues to overcome
Bougainville leaders see the reopening of Panguna mine as key to financing independence. Bougainville Copper Limited, the Rio Tinto subsidiary that once operated the mine, backs this assessment.

The Bougainville Autonomous Government has built its own gold refinery and hopes to create its own sovereign wealth fund to support independence. The mine would generate much-needed revenue, infrastructure and jobs for the new nation.

But reopening the mine would also require addressing the ongoing environmental and social issues it has caused. These include polluted rivers and water sources, landslides, flooding, chemical waste hazards, the loss of food security, displacement, and damage to sacred sites.

Many of these issues have been exacerbated by years of small-scale alluvial mining by Bougainvilleans themselves, eroding the main road into Panguna.

Some also worry reopening the mine could reignite conflict, as landowners are divided about the project. Mismanagement of royalties could also stoke social tensions.

Violence related to competition over alluvial mining has already been increasing at the mine.

More broadly, Bougainville is faced with widespread corruption and poor governance.

The Bougainville government cannot deal with these complex issues on its own. Nor can it finance the infrastructure and development needed to reopen the mine. This is why it’s seeking foreign investors.

Open for business
Historically, China has a strong interest in the region. According to Pacific researcher Dr Anna Powles, Chinese efforts to build relationships with Bougainville’s political elite have increased over the years.

Chinese investors have offered development packages contingent on long-term mining revenues and Bougainville’s independence. Bougainville is showing interest.

Patrick Nisira, the Minister for commerce, Trade, Industry and Economic Development, said last year the proposed Chinese infrastructure investment was “aligning perfectly with Bougainville’s nationhood aspirations”.

The government has also reportedly made overtures to the United States, offering a military base in Bougainville in return for support for reopening the mine.

Given American demand for minerals, Bougainville could very well end up in the middle of a struggle between China and the US over influence in the new nation, and thus in our region.

Which path will Bougainville and Australia take?
There is support in Bougainville for a future without large-scale mining. One minister, Geraldine Paul, has been promoting the islands’ booming cocoa industry and fisheries to support an independent Bougainville.

The new nation will also need new laws to hold the government accountable and protect the people and culture of Bougainville. As Paul told me in 2024:

“[…]the most important thing is we need to make sure that we invest in our foundation and that’s building our family and culture. Everything starts from there.”

What happens in Bougainville affects Australia and the broader security dynamics in the Indo-Pacific. With September 1, 2026, just around the corner, it is time for Australia to intensify its diplomatic and economic relationships with Bougainville to maintain regional stability.

Dr Anna-Karina Hermkens is a senior lecturer and researcher in anthropology, Macquarie University. This article is republished from The Conversation under a Creative Commons licence. Read the original article.

The first large-scale environmental impact assessment of Rio Tinto’s abandoned Panguna mine in Papua New Guinea has found local communities face life-threatening risks from its legacy.

The independent study was initiated after frustrated landowners in PNG’s Autonomous Region of Bougainville took their longstanding grievances against Rio Tinto to the Australian government in 2020.

British-Australian Rio Tinto has accepted the findings of the report released on Friday but has not responded to calls by landowners and affected communities to fund the clean-up.

• READ MORE: Other Panguna mine reports

Rio Tinto abandoned one of the world’s largest gold and copper mines in 1989 when a long-running dispute with landowners over the inequitable distribution of the royalties turned into an armed conflict.

The Panguna Mine Legacy Impact Assessment report found the mine infrastructure, pit and levee banks pose “very high risks,” while landslides and exposure to mine and industrial chemicals present “medium to high” risks to local communities.

Flooding in downstream from Panguna — caused by a billion tons of mine tailings dumped into the Jaba-Kawerong river system — was reported as posing “very high” actual and potential human rights risks.

“The most serious concern is the potential impact to the right to life from unstable structures, and landform collapses and flooding hazards,” the report concluded, with the access to healthy environment, water, food and housing also impacted.

More than 25,000 people are estimated to live in the affected area, on the island of 300,000 in PNG’s east on the border with Solomon Islands.

“Rio Tinto must take responsibility for its legacy and fund the long-term solutions we need so that we can live on our land in safety again,” Theonila Roka Matbob, lead complainant and Bougainville parliamentarian, said in a statement.

“We never chose this mine, but we live with its consequences every day, trying to find ways to survive in the wasteland that has been left behind.”

“What the communities are demanding to know now is what the next step is. A commitment to remediation is where the data is pointing us to, and that’s what the people are waiting for.”

In August, Rio Tinto and its former subsidiary and mine operator Bougainville Copper Limited along with the Autonomous Bougainville Government signed an MoU to mitigate the risks of the ageing infrastructure in the former Panguna mine area.

Last month the three parties struck an agreement to form a “roundtable.”

Rio Tinto in a statement after the report’s release said the roundtable “plans to address the findings and develop a remedy mechanism consistent with the United Nations Guiding Principles on Business and Human Rights.”

“While we continue to review the report, we recognize the gravity of the impacts identified and accept the findings,” chief executive of Rio Tinto’s Australia operations Kellie Parker said.

Rio Tinto divested its majority stake in the mine to the PNG and ABG governments in 2016, and reportedly wrote to the ABG saying it bore no responsibility.

Bougainville President Ishmael Toroama in welcoming the report thanked Rio Tinto “for opening up to this process and giving it genuine attention and input.”

In a statement he said it was a “significant milestone” that would help with the “move away from the damage and turmoil of the past and strengthen our pathway towards a stronger future.”

Bougainville voted for independence from PNG in 2019, with 97.7 per cent favoring nationhood.

Exploitation of Panguna’s estimated U.S.$60b in ore reserves has been touted as a major future source of income to fund independence. The referendum result has yet to be ratified by PNG’s parliament.

The first report of the Panguna Mine Legacy Impact Assessment identified what needs to be addressed or mitigated and what warrants further investigation.

The second phase of the process will conduct more intensive studies, with a second report to make recommendations on how the “complex” impacts should be remedied.

A 10-year civil war left up to 15,000 dead and 70,000 displaced across Bougainville as PNG forces –supplied with Australian weapons and helicopters – battled the poorly armed Bougainville Revolutionary Army.

Panguna remained a “no-go zone” despite the Bougainville Peace Agreement in 2001, and access has still been restricted in the decades since by a road block of former BRA fighters.

A complaint filed by the Australian-based Human Rights Law Centre on behalf of affected communities with the Australian government initiated the non-binding, international mechanism to report on “responsible business conduct.”

They alleged that Rio Tinto was responsible for “significant breaches of the OECD guidelines relating to the serious, ongoing environmental and human rights violations arising from the operation of its former Panguna mine.”

“This landmark report validates what communities in Bougainville have been saying for decades – the Panguna mine has left them living with an ongoing environmental and human rights disaster,” HRLC legal director Keren Adams said in a statement.

“There are strong expectations in Bougainville that Rio Tinto will now take swift action to help address the impacts and dangers communities are living with.”

The two-year, on-site independent scientific investigation by Australian engineering services company Tetra Tech Coffey made 24 recommendations on impacts to address and what needs further investigation.

Comprehensive field studies included soil, water and food testing, hydrology and geo-morphology analysis, and hundreds of community surveys and interviews.

Outstanding demands from the community include that Rio Tinto publicly commit to addressing the impacts, provide a timetable, contribute to a fund for immediate and long-term remediation and rehabilitation and undertake a formal reconciliation as per Bougainville custom.

A class action lawsuit brought by 5000 Bougainvilleans against Rio Tinto and subsidiary Bougainville Copper Limited for billions in compensation earlier this year is unrelated to the impact assessment reports. Rio Tinto has said it will strongly defend its position.

Republished from BenarNews with permission.

An initial hearing of a class action against mining giant Rio Tinto over the toxic legacy of the Panguna copper mine on the autonomous island of Bougainville has been held in Papua New Guinea.

The lawsuit against Rio Tinto and its subsidiary Bougainville Copper Limited (BCL) is seeking compensation, expected to be in the billions of dollars, for what plaintiffs allege is historic mismanagement of the massive open copper-and-gold mine between 1972 and 1989.

More than 5000 claimants backed by anonymous investors are seeking damages for the destruction that sparked a 10-year-long civil war.

• READ MORE: Other Bougainville and independence reports

The Panguna mine closed in 1989 after anger about pollution and the unequal distribution of profits sparked a landowner rebellion. As many as 20,000 people — or 10 percent of Bougainville’s population — are estimated to have died in the violence that followed between pro-inependence rebels and PNG.

Although a peace process was brokered in 2001 with New Zealand support, deep political divisions remain and there has never been remediation for Panguna’s environmental and psychological scars.

The initial hearing for the lawsuit took place on Wednesday, a day ahead of schedule, at the National Court in Port Moresby, said Matthew Mennilli, a partner at Sydney-based Morris Mennilli.

Mennilli, who is from one of two law firms acting on behalf of the plaintiffs, said he was unable to provide further details as court orders had not yet been formally entered.

A defence submitted
Rio Tinto did not respond to specific questions regarding this week’s hearing, but said in a statement on September 23 it had submitted a defence and would strongly defend its position in the case.

The lawsuit is made up by the majority of villagers in the affected area of Bougainville, an autonomous province within PNG, situated some 800km east of the capital Port Moresby.

At least 71 local clan leaders support the claim, with the lead claimant named as former senior Bougainville political leader and chief of the Basking Taingku clan Martin Miriori.

The lawsuit is being bankrolled by Panguna Mine Action, a limited liability company that stands to reap between 20-40 percent of any payout depending on how long the case takes, according to litigation funding documents cited by the Organised Crime and Corruption Reporting Project.

While the lawsuit has support from a large number of local villagers, some observers fear it could upset social cohesion on Bougainville and potentially derail another long-standing remediation effort.

The class action is running in parallel with an independent assessment of the mine’s legacy, supported by human rights groups and the Autonomous Bougainville Government (ABG), and funded by Rio Tinto.

Rio Tinto agreed in 2021 to take part in the Panguna Mine Legacy Impact Assessment after the Melbourne-based Human Rights Law Centre filed a complaint with the Australian government, on behalf of Bougainville residents.

Legacy of destruction
The group said the Anglo-Australian mining giant has failed to address Panguna’s legacy of destruction, including the alleged dumping of more than a billion tonnes of mine waste into rivers that continues to affect health, the environment and livelihoods.

The assessment, which is being done by environmental consulting firm Tetra Tech Coffey, includes extensive consultation with local communities and the first phase of the evaluation is expected to be delivered next month.

ABG President Ishmael Toroama has called the Rio Tinto class action the highest form of treason and an obstacle to the government’s economic independence agenda.

“This class action is an attack on Bougainville’s hard-fought unity to date,” he said in May.

In February, the autonomous government granted Australian-listed Bougainville Copper a five-year exploration licence to revive the Panguna mine site.

The Bougainville government is hoping its reopening will fund independence. In a non-binding 2019 referendum — which was part of the 2001 peace agreement — 97.7 percent of the island’s inhabitants voted for independence.

PNG leaders resist independence
But PNG leaders have resisted the result, fearful that by granting independence it could encourage breakaway movements in other regions of the volatile Pacific island country.

Former New Zealand Governor-General Sir Jerry Mateparae was appointed last month as an independent moderator to help the two parties agree on terms of a parliamentary vote needed to ratify the referendum.

In response to the class action, Rio Tinto said last month its focus remained on “constructive engagement and meaningful action with local stakeholders” through the legacy assessment.

The company said it was “seeking to partner with key stakeholders, such as the ABG and BCL, to design and implement a remedy framework.”

Copyright ©2015-2024, BenarNews. Republished with the permission of BenarNews.

High in the forested mountains of Papua New Guinea’s Bougainville Island lies an abandoned, kilometer-wide crater cut deep into the earth.

Formerly one of the world’s largest gold and copper mines, the open pit now serves as an unsightly monument to the environmental and social chaos that underground riches can create.

Run for years by a subsidiary of Anglo-Australian giant Rio Tinto, the Panguna mine earned millions for Papua New Guinea (PNG) and helped bankroll its newfound independence. But it also poured waste into local waterways and fuelled anger among locals who felt robbed of the profits.

• READ MORE: Other Pangune mine reports

When an armed uprising ultimately shuttered the mine in 1989, the impoverished island was left reeling.

Nearly three decades later, in late 2022, human rights activists, the local government, and the mine’s former operators joined forces to produce a definitive assessment of the mine’s toxic legacy.

Their report, due to be released later this month, will become the basis for negotiations aimed at getting the mining companies to finally clean up the mess and compensate affected communities.

But its supporters now worry their efforts will be undermined by a class-action lawsuit launched in May against the mine’s erstwhile operators. The legal effort is being championed by former rebel leaders — and backed by anonymous offshore investors who stand to make hundreds of millions of dollars if it succeeds.

Worldwide litigation boom
The lawsuit is part of a worldwide boom in litigation financing that seeks to take multinational companies to task for ecological or social damage while potentially reaping a fortune for lawyers and funders.

Critics in Bougainville worry the lawsuit will reopen old wounds at a time when the island is making a push to break free of Papua New Guinea and become the world’s newest sovereign nation. Many Bougainvilleans are hoping to reopen the mine, using its wealth to fund their own independence this time around.

The region’s government and many local leaders believe the class action could put the mine’s revival at risk. There are also concerns the lawsuit would leave many Bougainvilleans empty handed, while the anonymous foreign investors would walk away with a significant share of the payout.

Unlike the official assessment, which seeks to identify everyone who needs to be compensated, the class action will only share its winnings — which could potentially be in the billions of dollars — with the locals who have signed on. Others will get nothing.

“There’s already fragmentation in the community and families are already divided,” said Theonila Roka Matbob, who represents the area around Panguna in the local Parliament and has helped lead the government-backed assessment process as a minister in the Autonomous Bougainville government.

She speaks from personal experience. The chief litigant in the class-action lawsuit, Martin Miriori, is her uncle. The two are no longer on speaking terms.

A losing deal
Gouged from Bougainville’s lush volcanic heart, the Panguna mine in its heyday supplied as much as 45 percent of PNG’s export revenue, providing it with the financial means to achieve independence from Australia in 1975.

The windfall, however, did not extend to Bougainvilleans themselves. Ethnically and culturally distinct from the rest of PNG’s population, they saw Panguna as a symbol of external domination.

The mine delivered only a miserly 2-percent share of its profits to their island — along with years of environmental havoc.

During the 17 years of Panguna’s operation — from 1972 to 1989 — over a billion metric tons of toxic mine waste and electric blue copper runoff flooded rivers that flowed downstream towards communities of subsistence farmers. The result was poisoned drinking water, infertile land, and children who were drowned or injured trying to cross engorged waterways.

In 1989, enraged Bougainville locals launched an armed rebellion against the PNG government. The mine was shut down, closing off a vital source of revenue for the national government in Port Moresby.

A brutal civil war raged on for nearly a decade, leaving more than 15,000 people dead, while a naval blockade by PNG’s military obliterated the island’s economy.

A peace deal in 2000 granted Bougainville substantial autonomy. But nearly a quarter-century later, the legacy of Panguna and the war it provoked is still deeply felt.

Few paved roads, bridges
There are few paved roads and bridges in the island’s interior. Residents earn a modest living through cocoa and coconut farming, or by unregulated artisanal mining in and around the abandoned Panguna crater.

Rivers polluted by years of runoff are still an otherworldly shade of milky blue.

At least 300,000 people are estimated to live on Bougainville, including as many as 15,000 who live downstream of the mine. Of those, some 4500 have joined Miriori — Roka’s estranged uncle and a tribal leader whose brother, Joseph Kabui, served as the first president of autonomous Bougainville — in seeking restitution through the class-action suit.

“We’ve got to make people happy,” Miriori said. “They’ve lost their land forever, environment forever. Their hunting grounds. Their spiritual, sacred grounds.”

‘Alert to opportunities’
Miriori took many by surprise when he became the public face of the suit filed in PNG’s National Court in May against Rio Tinto and its former local subsidiary, Bougainville Copper Limited.

While the tribal leader and former rebel is a well-known figure in Bougainville, the funders of the lawsuit are not. They have managed to keep their identities secret in part because the company behind the suit, Panguna Mine Action LLC, is registered on Nevis, a small Caribbean island that does not require companies to publicly disclose their shareholders and directors.

Miriori declined to comment on who was behind the company, saying, “I will not tell you where the funding is based … you can source that from our people down there [in Australia].”

James Sing, an Australian based in New York, is Panguna Mine Action’s chief public representative. He initially agreed to an interview, but later referred reporters back to a London-based public relations agency, Sans Frontières Associates.

The agency declined to reveal Panguna Mine Action’s investors.

Litigation funding documents obtained by OCCRP, however, shed some light on the history of the case. The documents show that Panguna Mine Action began to investigate the possibility of a class-action suit as early as July 2021.

The Bougainvillean claimants, led by Miriori, were formally brought into an agreement with the company and its Australian and PNG lawyers in November 2022. The suit was publicly announced this May.

Handsome profit
The lawsuit’s investors stand to profit handsomely from any eventual settlement: Panguna Mine Action is poised to receive a cut of 20 to 40 percent of any payout resulting from the suit, with the percentage increasing the longer the process takes, the funding documents show.

In interviews and statements, both Miriori and Panguna Mine Action have put the potential value of any award in the billions of dollars.

The lawsuit’s financiers defend their substantial share of the potential benefits as standard practice.

“The costs of launching and running the class action against a global miner are significant, and almost certainly could not be met from within Bougainville without funding from an external party,” the company said in its statement.

Panguna Mine Action added it would bear sole responsibility for costs if the lawsuit is unsuccessful.

According to Michael Russell, a Sydney-based class action defence lawyer, such funding arrangements are typical in the burgeoning world of litigation finance, where investors seek out cases that promote virtuous social causes while offering huge potential payoffs.

A similar case is unfolding in Latin America, where more than 720,000 Brazilians are seeking $46.5 billion as part of a gargantuan class action against mining giant BHP and its local subsidiary for their role in a 2015 dam collapse.

In such cases, funders can justify walking away with significant cuts of any winnings because of the substantial risk they face of losing their investment if a case fails, Russell said.

Such cases were rarely initiated at the grassroots level by the victims themselves, he added.

“Most of the time, either the plaintiff firms or the funders will be the catalyst for a claim,” he said. “They are very alert to opportunities.”

Rival restitution plans
Government officials including Miriori’s niece, Roka, say the class-action case, which is due to hold opening arguments in October, threatens to derail the ongoing impact assessment aimed at calculating the full cost of the mine’s environmental impact and developing recommendations for addressing the damage.

The assessment, which counts community members among its stakeholders and bills itself as an independent review, is supported by Australia’s Human Rights Law Centre, which has hailed the project as “an important step” towards rectifying the mine’s devastating impact on thousands of Bougainvilleans.

However, while Rio Tinto and Bougainville Copper are both funding the project, they have not yet committed to paying for any compensation or cleanup. Roka said she was concerned the lawsuit could reduce the company’s willingness to engage with the process, since it could view the assessment as a tool that could be used against them in the courtroom.

Bougainville President Ishmael Toroama backs the impact assessment and has lambasted the class action suit as the work of “faceless investors . . .  taking advantage of vulnerable groups.” (His office did not respond to an interview request.)

He also expressed concern that the court proceedings threaten to “disrupt” his government’s efforts to reopen the mine, which still holds an estimated $60 billion in untapped deposits.

Bougainville’s leaders see the mine as key to securing the island’s economic future as it sets out to form an independent state — a dream that drew overwhelming public support in a 2019 referendum.

Exploration licence
Earlier this year Toroama’s government granted Bougainville Copper a five-year exploration licence for the Panguna site.

The lack of media and polling in Bougainville make it hard to measure public opinion on plans to reactivate the mine, but many locals appear to support reopening it under local control as an essential tool for achieving independence.

Bougainville Copper’s brand is still toxically associated with Rio Tinto and its past abuses, despite the fact that the international mining giant gave away its majority stake for no money in 2016.

The publicly traded company is now majority co-owned by the governments of PNG and Bougainville, and Port Moresby has pledged to hand over all its shares to the autonomous region in the near future.

Panguna Mine Action acknowledges that its effort could stand in the way of the mine’s reopening — but the company says that is a good thing.

“It is our understanding that the people of Bougainville do not wish mining to be recommenced under any circumstances or, alternatively, unless Rio Tinto and Bougainville Copper acknowledge the past, pay compensation and remediate the rivers and surrounding valley,” the company said in a statement.

Rio Tinto declined to comment. Mel Togolo, the chairman of Bougainville Copper, told OCCRP that the lawsuit was the work of “a foreign funder who no doubt is seeking a return on an investment.”

View of the tailings located downstream of the Panguna mine. Photo: OCCRP / Aubrey Belford

‘Only those who have signed will benefit’
The fight over Panguna adds even more uncertainty to long-running anxiety over Bougainville’s future.

With global copper prices soaring on high demand for renewable energy and electric vehicles, the Panguna mine would be an attractive prize for both Western mining companies and firms from China, which is dramatically expanding its influence in the South Pacific.

Since a future Bougainvillean state would be economically dependent on the mine’s revenue, some have raised concerns that control of the mine could become a proxy battle for geopolitical influence in the broader region.

For his part, Miriori expressed little concern that a multibillion-dollar payout might stir resentment by reaching only a fraction of the people affected by the mine’s environmental destruction.

“Only those who signed will benefit,” he said, adding that the opportunity was made “very clear to people” through awareness campaigns.

“Those who have not signed, it’s their freedom of choice.”

Among those who did not sign is Wendy Bowara, 48, who lives in Dapera, a bleak settlement built on a hill of mine waste. Bowara said she is looking to the government-backed assessment, not the lawsuit, to deliver compensation and clean up Panguna’s toxic legacy.

“We are living on top of chemicals,” she said. “Copper concentration is high. I don’t know if the food is good to eat or if it’s healthy to drink the water.”

But while it may seem odd given her grim surroundings, Borawa says she strongly supports reopening the mine.

“It funded the independence of Papua New Guinea,” Bowara said. “Why can’t we use it to fund our own independence?”

Allan Gioni contributed reporting.

Aubrey Belford is the Pacific editor for the Organised Crime and Corruption Reporting project (OCCRP). Republished with permission.

About 4500 Bougainvillean residents now back a lawsuit against mining giant Rio Tinto.

This is an additional 1500 people from the autonomous Papua New Guinea region joining the action since it was filed in May this year.

Bougainville President Ishmael Toroama said the lawsuit was disappointing and was pursued by those people acting against Bougainville’s interests.

• READ MORE: Other Panguna mine reports

The government was not backing it in any way, shape or form, he said.

The claimants are seeking billions of dollars in compensation from Rio Tinto which operated the Panguna copper and gold mine in the 1970s and 1980s before it was forced to shut by civil war.

The mine was at the heart of that war which brought death and devastation to Bougainville over a 10-year period until 1997.

They say Rio Tinto, which was the majority shareholder in Bougainville Copper Ltd (BCL) at the time, is responsible for the large scale environmental and social harm that resulted from what was one of the biggest mines in the world.

A former senior Bougainville political leader, Martin Miriori, who is the lead claimant of the class action, said the “large increase in claimants demonstrates the strength of feeling among local people that Rio Tinto and BCL must make amends for decades of environmental devastation”.

He said “this issue will not go away, as the legal action has attracted strong support, and reminded the world of the destruction caused by the mine operator’s reckless actions.”

A first court hearing is set for Port Moresby on 10 October 2024.

This article is republished under a community partnership agreement with RNZ.

Community leaders around Panguna mine in the autonomous Papua New Guinea region of Bougainville want mining giant Rio Tinto to help out following recent flooding.

Rio Tinto was the owner/operator of the mine which has laid derelict for more than 30 years.

Fears of the threat from flooding in the river system near the mine have increased in recent years.

• READ MORE: Other Panguna mine reports

Recent heavy rain has choked rivers with mine tailings waste, resulting in several communities being swamped.

Residents have reported peoples’ homes have been inundated, water supplies and food crops compromised.

The flooding risks were highlighted in an independent report by Tetra Tech Coffey published last year.

This report was prepared as a baseline to inform an independent human rights and environmental impact assessment that launched in December 2022 and which Rio Tinto committed to fund in response to a human rights complaint by 156 local residents.

Phase 1 of the assessment is due to report in mid-2024.

Immediate funding call
Community leaders are calling for immediate funding from Rio Tinto for tangible action to address urgent health and safety issues in their communities, as well as a commitment from the company now that it will fund long-term solutions after each phase of the impact assessment.

To date, Rio Tinto has agreed to fund the human rights and environmental impact assessment only.

The chairperson of the Lower Tailings Landowners Association, Bernardine Kiraa, said: “Our communities are drowning in mine tailings waste.”

“The recent flooding damaged peoples’ houses, food crops and water sources. Women have been having trouble finding clean water to wash their babies.

“We worry about the spread of mosquitoes and disease following the flooding.”

Theonila Roka-Matbob, who is a local MP and local landowner, and who led the campaign for the environmental assessment said: “We have welcomed Rio Tinto’s commitment to assessing the impacts of the Panguna mine.”

“We know the process will be a long one. But we have been dealing with the disaster caused by the mine for decades.”

‘Always worrying about food’
“We are always worrying that the food we eat, the water we drink and the air we breathe is not safe. We worry about levees collapsing and mine waste flooding our lands and communities,” she said.

“We need tangible action now to address urgent health and safety issues. And we need to know what Rio’s intentions are after the impact assessment – that they will stick with us and fund the long-term solutions we need.”

The legal director at Australia’s Human Rights Law Centre, Adrianne Walters, said: “Communities are being asked to be patient while the impact assessment progresses over a number of years.”

“But they also need action now and a public commitment from Rio Tinto that it will actually remedy the devastating impacts of the mine.”

“Rio Tinto’s commitment to assessing the impacts of its former mine is an important first step,” Walters said.

“The company now needs to publicly reassure communities that it is firmly committed to funding the long-term solutions that will allow them to live safely on their land.”

Rio Tinto gave away its shares in Bougainville Copper Ltd (BCL) in 2016 but it has subsequently agreed to the funding of the human rights and environmental assessment.

This article is republished under a community partnership agreement with RNZ.

Last week the Bougainville Autonomous Government announced an agreement had been reach with Panguna landowners to reopen the island’s controversial gold and copper mine.

Once the backbone of the Papua New Guinea economy, Panguna has been idle since the civil war began more than 30 years ago — a war the mine was at least partly responsible for.

But now the leaders of the five major clans in the Panguna area — Basikang, Kurabang, Bakoringu, Barapang and Mantaa — have said they will allow the mine to reopen.

Don Wiseman of RNZ Pacific asked Islands Business specialist writer on PNG Kevin McQuillan about the significance of the decision:

KMcQ: “This is hugely significant. It’s significant for the people of Bougainville, the Bougainville Autonomous Government, the national government, and, dare I say, probably the whole region. But on the other hand, it also creates a huge dilemma for the national government. Panguna was probably the second biggest copper and gold mine in the world, and at one point and accounted for two fifths of Papua New Guinea’s GDP.

“So when it was operating, that was a huge source of income for the national government. But it wasn’t so much of course, for the people of Bougainville, which prompted the 10 years civil war in part. The other element of that civil war, apart from the poor income that the operators gave the people of Bougainville was the environmental damage to the island of Bougainville.”

DW: President Ishmael Toroama has said that being able to open Panguna again is a critical step on the road to independence, in terms of showing economic viability.

KMcQ: “Yes. And that’s reflected also in the fact that there’s been mounting pressure over the last probably 10 or more years for the mine to open because the generations coming through have had very little in the way of food, shelter, clothing, educational opportunities, so on and so forth. And a lot of that pressure to reopen has come from the younger generation, because they want the opportunities that they know exist.

“For the national government it creates the dilemma of having agreed to discuss Bougainville breaking away, but not wanting to break away. What does it do to keep Bougainville within the fold, because the potential income for not just for Bougainville but for the country as a whole is enormous — 42 percent of GDP when it was operating.

“It may not be as much when it does get back up and running, but it will certainly be a significant contributor to the PNG economy. So where [Prime Minister James] Marape and whoever takes over as prime minister, if he loses the election this year, goes with discussions on Bougainville and its independence is hugely significant for the country as a whole.”

DW: This idea that President Toroama has of it being a conduit to independence may in fact work in the other direction.

KMcQ: “Well, it all depends on the negotiating skills really. The other element that comes into play is that BCL — Bougainville Copper Ltd — is now jointly controlled by the Papua New Guinea government and the Bougainville Autonomous Government, through a company called Bougainville Minerals Ltd. They both own a 36.4 percent share in Bougainville Copper.

“Over the past few years there have been promises from the national government to transfer that 36.4 percent shareholding that the national government has to the people Bougainville, which would give it roughly 72 percent shareholding in Bougainville Copper. It’s never happened.

“The national government has held off transferring that money despite the promises that it would do so. And this is going to be a key negotiating point in the future of independence. The national government, of course, does not want Bougainville to go independent. And there are options. There are other options.

“It’s not a binary choice of either independence or not. It could be that the negotiations see the Bougainville area stay within, if you like the parameters of Papua New Guinea, but having a high degree of independence. But whatever that actually means, nobody’s really going to know until the negotiations finish.”

DW: Yes. So the PNG government could hold on to shareholding and still earn from Panguna. Even if it went to this lesser form of independence.

KMcQ: “Yes, it could. But you can really bet your bottom dollar that if the national government holds on to its 36.4 percent shareholding, which was given to it by Rio Tinto, despite those promises, that will be a matter of a court case.”

DW: Now you talk about a lot of people being very keen to see the mine reopened. But there are also many, many people who certainly don’t want to see it reopen.

KMcQ: “They do but what has given this announcement the impetus is that clan chiefs’ representatives from the five major clans from the area have agreed to this resolution to re-open the mine.

“There will always be opposition to reopening the mine. There always has been, even over the last 10 years, when previous president of Bougainville, Fr John Momis, wanted the mine to reopen.

“There was a significant minority. Well, a vocal minority is probably more accurate, deeply opposed to the reopening of mine on environmental grounds.”

DW: With these announcements the minuscule share price for Bougainville Copper has soared.

KMcQ: “Well, it has doubled on news of this announcement. And it means that BCL has a market capitalisation of around about NZ$260 to NZ$265 or NZ$270 million . The point about the doubling of the share prices is the support that it reflects for the re-opening of mine.

“Plus it also, it paves the way for a company to be a little bit more settled in the prospects of the process of reopening the mine. The last valuation that they had to reopen the mine, which was several years ago now, said that it would cost between around about NZ$6 billion to reopen the mine. But over its lifetime, it would earn roughly $75 billion.

“So it’s a high risk, high reward investment. But the fact that this resolution has been made, declared, share prices doubled. It means that Bougainville Copper is probably a lot more confident this week than it was last week that it could go ahead and do some preparatory work for the reopening of the mine, which could take five to seven years.”

DW: They are just eyewatering figures aren’t they?

KMcQ: Well, it shows the potential. I mean this is a mine that was the second biggest gold and copper mine in the world. And there will be a lot of companies, global companies keen to get involved. Rio Tinto has put its fingers into the air and sniffed the wind and it realises that this could finally happen.

DW: You mean Rio Tinto is lining up to to work with its former company?

KMcQ: “Well, it certainly looks that way. In 2016, because of the criticism that Rio Tinto had, or was receiving because of the huge environmental damage that it caused to the Bougainville area, it gave away its mine.

“It had a choice of either fixing up the environment or walking away, as it saw it. So it walked away — gave those shares equally to the Bougainville government and the national government. But now it wants to get back involved.

“And over the last week it has been talking about repairing some of the environmental damage that it caused during the mine’s operation. But there are other companies involved around the world, which could get involved.

“I’m thinking Glencore, the Swiss-based development company could get involved as well. Now, the reason why this is important is because BCL does not have the financial wherewithal to go and reopen the mine at a cost of $6 billion.

“And it’s only gotten roughly NZ$260 million in play. And really, it doesn’t have the expertise to reopen the mine, develop it, run it. It would have to go into partnership with one of the big mining companies Rio Tinto, or Glencore, or somebody else.

“The former president, Sir John Momis, had negotiations or had talked to China about the possibility of a Chinese company moving in and developing the mine. So in the current climate of debate around China’s role in South Pacific, one has to wonder just what impact that might have on the Australian, New Zealand, American governments.”

This article is republished under a community partnership agreement with RNZ.

Bougainville community leader and MP Theonila Roka Matbob has received the Gwynne Skinner Human Rights Award in recognition of her outstanding work to hold mining giant Rio Tinto to account for the legacy of environmental devastation caused by its former Panguna mine.

Matbob, 31, is a traditional landowner from Makosi, just downstream from the mine.

She was one of 156 Bougainville residents, represented by the Human Rights Law Centre, who last year filed a human rights complaint against the company with the Australian government.

• READ MORE: The making of Ophir – Bougainville stories and silences: An exploration of the documentary
• Victorious woman always confident of winning Bougainville Open Seat
• Other Panguna mine reports

The complaint received global media attention and led to Rio Tinto publicly committing in July to fund an independent human rights and environmental impact assessment of the mine.

“I’m deeply honoured to receive this award on behalf of myself and my people,” Matbob said.

“We have been living with the disastrous impacts of Panguna for many years and the situation is getting worse. Our communities live surrounded by the vast mounds of waste left over from the mine, which continue to poison our rivers with copper.

“Kids get sick from the pollution. The farms and villages of communities downstream are being flooded with mine waste.

“Many people lack basic access to clean water.

Years of struggle
“Now, after many years of struggle, at last we have an agreement with Rio Tinto to fund a proper investigation of these urgent problems to develop solutions.

“I would like to express my thanks to all those who have supported us to reach this point. But now is not the time to rest. Our work will continue until Rio Tinto has fully dealt with the disaster it left behind.”

Human Rights Law Centre legal director Keren Adams said that Matbob had worked tirelessly over the past few years to brings these issues to world attention and compel Rio Tinto to take responsibility for the devastating consequences.

“It is in large part thanks to her leadership and advocacy that the company has now taken the first important step towards addressing this legacy,” she said.

“At the same time as doing all this, Theonila ran for Parliament and was elected one of Bougainville’s youngest and only female MPs and subsequently made the Minister for Education. She is an inspirational human rights defender and a thoroughly deserving winner of the award.”

Matbob previously worked with the Human Rights Law Centre to document the stories of the communities affected by the mine, including from many inaccessible villages whose stories had rarely been heard.

This work led to the publication of the report After The Mine.

Featured in PJR
She also featured in the documentary Ophir about Bougainville and also in the Pacific Journalism Review Frontline investigation by Wendy Bacon and Nicole Gooch published in the research journal last week.

Matbob will be presented with the award at a virtual ceremony on October 22.

Professor Gwynne Skinner was a professor of law at Willamette University in the United States who spent her career working at the forefront of efforts to develop greater accountability by companies for their human rights impacts.

The award was created by the International Corporate Accountability Roundtable to honour her legacy and recognise the work of individuals and organisations that have made significant contribution to corporate accountability.

For as long as the Campaign Against Foreign Control of Aotearoa (Cafca) has existed – more than 45 years now – we have called for the closure of the aluminium smelter, owned by giant transnational corporation, Rio Tinto.

There are numerous grounds for doing so, all of which amount to the smelter not being in New Zealand’s national interest. The corporate welfare power price deal (the price is still secret) by itself qualifies the smelter as the country’s biggest bludger.

Once again Rio Tinto is pulling the same old party trick of threatening to close down and leave the country unless it gets an even better deal than what it currently enjoys.

READ MORE: Mataura toxic waste – petition urges government to step in

The conventional wisdom used to be that the smelter is bad for the country but good for Southland.

Not so more, in light of very recent events. February’s huge floods throughout Southland ran the very real risk of setting an environmental catastrophe (not to mention a major threat to life) if the water had got into huge quantities of toxic waste stored in Mataura, which would have released ammonia gas.

Fortunately, that did not happen. But neither the toxic waste nor the threat have gone away.

What is this toxic waste? Some (but by no means all) media reports correctly identified it as the poetically named dross, the toxic waste product of the smelter.

Toxic waste disposal outsourced
And why is it being stored in a closed down former paper mill building right next to a river in Mataura (along with other places dotted across Southland)? Because Rio Tinto got sick of storing it onsite at Bluff and decided to outsource its disposal to a third-party company, which took it off Rio Tinto’s hands in 2014 and then promptly went bust in 2016.

Leaving the people of Mataura, and elsewhere in Southland, stuck with the problem.

Following February’s flood in Mataura, the Gore District Council made a verbal deal with the smelter management to have the dross removed. That deal was overruled by Rio Tinto’s board.

At which point the “transformative” government started to wake from its stupor.

Environment Minister David Parker said it was “disgraceful” and “I’ve had enough” and threatened to look at suing Rio Tinto.

Good luck with that one, minister. That would involve Labour facing up to the 2003 and 2004 indemnities signed by Michael Cullen, Labour’s Minister of Finance at the time, accepting that the taxpayer, and not the smelter owners, would be liable for the cost of cleaning up toxic waste produced by the smelting process.

Liability renewed
That liability was renewed as recently as 2016, by the Key government.

Yes, that’s right. Rio Tinto has outsourced the liability for cleaning up its mess onto the New Zealand taxpayer.

And supine governments, both Labour and National, have gone along with that. It’s a textbook example of a transnational corporation privatising the profits and socialising the costs.

​Cafca insists that the government makes Rio Tinto clean up its own mess, at its own expense. And that it cuts short Rio Tinto’s decades-long tiresome threatening to close down and assist them to do so. With a “good old-fashioned” kick in the pants.

But we’ll believe that when we see it. In 2013 it issued the same threat to leave and the Key government gave it $30 million to stay.

This company has corporate welfare down to a fine art. It has had half a century of practice.

Bougainville Affairs Minister Fr Simon Dumarinu has been ousted by four votes as the first casualty of the Peter O’Neill government in Papua New Guinea after last year’s general  election, reports Loop PNG.

The National Court in Waigani has declared Sam Akoitai, a former mining minister, reelected as the Central Bougainville member of Parliament after hearing an election petition.

Justice Lawrence Kangwia yesterday afternoon declared Akoitai elected under section 212 of the Organic Law on National and Local Level Government.

He formally ratified election results from the recount, filed in court on March 20, as correct and valid, reports Loop PNG.

Akoitai won 7257 votes in the recount while Dr Dumarinu had 7253 votes.

Akoitai was declared the winner after the court refused a motion by Fr Dumarinu for a further recount.

‘Peace must be winner’
“We’d like to continue to maintain peace in Bougainville and peace must be the winner,” Akoitai said outside the court.

“It’s now down to work, both in Bougainville and Papua New Guinea.”

He is regarded as a cheerleader for Rio Tinto and Bougainville Copper Limited, having worked for the company for eight years. He also fought against the Bougainville Revolutionary Army (BRA) during the region’s 10-year civil war.

Fr Dumarinu is a Marist Catholic priest from Deomori in the Panguna mine area and had been elected to Parliament as a member of the Social Democratic Party led by National Capital District Governor Powes Parkop.

Bougainville faces a referendum on independence on June 19 next year.

• Panguna priest wins Bougainville seat
• More PNG stories

Correspondence seen by Post-Courier from a source close to the Prime Minister states that O’Neill had not met Rio Tinto officials in Port Moresby prior to the share divestment, and there had been no decision by the National Executive Council on the shares.

This comes after Bougainville President John Momis last week slammed what he called “a shady deal between the national government and Rio Tinto”.

Rio Tinto’s decision to transfer the BCL shares would make Papua New Guinea an equal shareholder with the Autonomous Bougainville Government in the company which operated the ill-fated Panguna copper mine.

Last week, Momis said the national government was “deeply involved” in the transfer because:

“Rio officials first advised me of the Rio share decision around 9pm on the night of Wednesday, June, 29.

“But a subsidiary of the National Government, Petromin, accepted the Rio Tinto shares the very next day. I can see no way Petromin could have been ready to jump on June 30 if PNG was not fully involved in Rio’s decision on its BCL shares.

“Yet when I met the Prime Minister to discuss the share issue two days later on Saturday June 30, he said he needed to see the details of the Rio decision.”

The Prime Minister’s assurances that he had not been part of a backdoor deal are backed up by the correspondence sighted by the Post-Courier which went on to state that the NEC would be meeting to discuss their options on this matter.

The communication said the Prime Minister was not aware of any movements of the Petromin board relating to the shares and if there were any, they would be reviewed by cabinet.

Bougainville leaders have been advised to await the return of the Prime Minister next week to negotiate what is hoped will be an amicable outcome.

• Bougainville president, chiefs condemn Rio Tinto ‘conspiracy’ over mine