Discovery of a copper deposit
CRA Exploration Pty Limited, a subsidiary of Rio, was granted Prospecting Authorities over the area that would later become the Panguna Mine site and ultimately discovered a copper deposit in the Crown Prince Ranges of Bougainville Island.
Source: PNG National Gazette 1965 Nos. 2 and 13, PNG National Gazette 1966 No. 65 and Bougainville Copper Agreement 1967.
Bougainville Copper Pty Ltd is incorporated
Rio caused Bougainville Copper Pty Ltd, which would later become Bougainville Copper Limited (BCL), to be incorporated.
In the same year, BCL and the Administration of the Territory of Papua and New Guinea entered into the Bougainville Copper Agreement concerning the development of certain mineral deposits.
1969 to 1971
Mine development
Environmental destruction
BCL cleared approximately 220 hectares of tropical rainforest to establish the Mine site. The rainforest was cleared by poisoning the trees and spraying the undergrowth with chemicals and burning the remnants. The waste from this process was then pushed into drainage channels and washed into the Kawerong river.
Source: Applied Geology Associates Limited, ‘Environmental Socio-Economic Public Health Review: Bougainville Copper Mine, Panguna’ January 1989, pp. 2.10-2.11, 5.27-5.28.
Mining production is commenced
BCL commenced commercial production at the Mine.
Source: Bougainville Mining Limited Annual Report 1972.
BCL is listed on the Australian Securities Exchange
Following the public listing of BCL on the Australian Securities Exchange, Rio:
- Maintained a controlling interest in BCL of more than 50% of the issued shares.
- Appointed the majority of directors of BCL.
Source: BCL Annual Reports.
1988
Mining production and impacts
Engagement of consultants to investigate
Landowners advocated for, among other things:
- the cancellation of the Bougainville Copper Agreement by the PNG Government;
- the payment of K10 billion to landowners as compensation for damage to their land and the environment; and
- ownership of BCL to be transferred to Bougainvillean control.
Due to growing tensions, the PNG Government appointed an independent consulting group, Applied Geology Associates Limited, to review and make recommendations with respect to the social, environmental and economic impacts of the mining operations on landowners and the broader community within the mining lease area.
Source: BCL Annual Report 1988, p. 9 and Applied Geology Associates Limited, ‘Environmental Socio-Economic Public Health Review: Bougainville Copper Mine, Panguna’ January 1989 pp. 1.3, 7.1-7.5, Appendix II.
December 1989 to April 1998
Civil War
The Bougainville Civil War
It is estimated that, during the violent and protracted civil war, up to 15,000 people lost their lives.
2016
Rio divestment of BCL
Rio divested itself of its 53.8% shareholding in BCL
Rio abandoned its former subsidiary by divesting itself of its 53.8% shareholding in BCL.
The Mine remained abandoned and its impacts unaddressed.
