Ord River Resources strives to reopen Panguna copper mine, PNG
Source: Hoovers
metalsplace.com
Australia's Ord River Resources Ltd. (ORD.AU) is continuing its drive for a role in the reopening of the Panguna copper mine on Bougainville Island in Papua New Guinea, but is receiving mixed messages from the local government.
Ord said Wednesday the Autonomous Bougainville Government is still considering the company's possible participation in the reopening of the mine, which was shut in May 1989 due to attacks from a seccessionist movement.
But Rio Tinto Plc. (RTP) subsidiary Bougainville Copper Ltd. (BOC.AU) said Wednesday it still owns the rights to the mine and has no association with Ord River.
PNG's Post Courier newspaper last week reported the ABG has decided to cease discussions with Ord River over Panguna.
Ord River's executive chairman John Towner met with ABG President Joseph Kabui this week and the ABG Tuesday released a statement confirming it is still considering Ord's involvement.
"Ord River Resources remains one of the frontline options in the debate about resolving the question of reopening the Panguna Mine," Kabui said in the statement.
But the local government's position was thrown back into doubt Wednesday when the ABG asked for its statement not to be printed and said it would not take responsibility for its contents.
Ord said Wednesday it had been investigating general mining opportunities on Bougainville when the ABG invited it look at the question of reopening Panguna, which was the world's third largest copper mine before it was shut and force majeure declared.
"Ord believes it can contribute positively to mining on Bougainville in a way that would benefit Bougainville as a whole," executive chairman John Towner said.
There is speculation that Ord River's 20% shareholder, China Nonferrous Metals, could provide the financial muscle needed to pursue a role at Panguna which opened in 1969 and was the nation's biggest mining operation.
Bougainville Copper chairman Peter Taylor said his company's rights to the mine are enshrined in an act of the PNG national parliament.
"Bougainville Copper can confirm it owns the leases at Panguna in good standing and its rights around those leases are guaranteed by the national government," he said.
Taylor said, while no feasibility study has been carried out at the mine recently, basic calculations using current prices look good.
The company is still working to bring together the ABG, the national government and local land owners to discuss the future of Panguna, Taylor said.
"It's all up to the people at the mine site that is the key to it – they have got to decide whether they want anybody to come back and mine again," he said.
Ord River closed down 7% at 46 cents while Bougainville Copper was unchanged at 73 cents. |
