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Rio Tinto (ASX: RIO) will sit down with officials from the Bougainville region of Papua New Guinea to address the legacy impacts of a mine operated by its former subsidiary Bougainville Copper Ltd. (BCL) (ASX: BOC).
A memorandum of understanding was signed on Tuesday between the Australian miner, BCL and the Autonomous Bougainville Government (ABG) to form a roundtable to address the legacy impacts of the Panguna mine.
Rio Tinto and BCL are currently facing civil action lawsuits for what local residents claim to be “historical mismanagement” of the Panguna copper mine, said to be responsible for poisoning the entire length of the Jaba River and caused health problems for as many as 12,000 living in the area.
Panguna had been in operation for nearly two decades, before being forced to shut down 1989 due to fierce protests over the disbursement of mine revenue that eventually turned into a decade-long civil war that killed nearly 20,000 people.
At one time, Panguna was the world’s largest open-pit copper-gold mine, whose prosperity was linked to Rio Tinto’s rise in the mining industry and contributed to Papua New Guinea’s independence from Australia in 1975.
In 2016, Rio Tinto relinquished its majority 54% stake in Panguna after pressured by the Bouganville government’s pressure to restart the mine. The project is now being undertaken by BCL and the Bougainville government, which has since gained autonomous status.
BCL previously estimated that the copper mine would take seven to eight years and $5 billion to $6 billion to rebuild and resume full operations.
Under the MOU signed Tuesday, the three parties will work together, consult with impacted communities, and establish a process to agree on how to remedy actual and potential impacts identified in the Panguna Mine Legacy Impact Assessment (PMLIA), which is due soon.
It is intended the roundtable will include establishing an effective remedy mechanism that is aligned with the United Nations Guiding Principles on Business and Human Rights.
According to Rio, the PMLIA is based on two years of data collection overseen by an oversight committee that includes representatives from local communities and both government of Papua New Guinea and ABG officials.
Engineering firm Tetra Tech Coffey, which conducted the study and reported to an independent secretariat, presented the findings to Panguna communities in October 2024. The PMLIA report is expected to be published later this month.
In parallel, the roundtable parties will continue with work on ageing infrastructure and other priorities already identified through the PMLIA process.
“This is a positive step forward for the communities in the assessment area. Building better understanding to help address the legacy issues is very important and a key focus of the assessment,” BCL chairman Sir Mel Togolo said in a news release.
“Since 2021, we’ve committed to the independent legacy impact assessment process with local stakeholders, which for the first time in decades will provide objective data on environmental and associated human rights impacts from the Panguna mine since it ceased operations due to civil war,” Rio Tinto’s Australia chief Kellie Parker added.
