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Rio Tinto reviewing its 53.8 per cent stake in Bougainville Copper and unused Panguna mine
Rio Tinto has announced that it is reviewing all options for its 53.8 per cent stake in Bougainville Copper Limited.
Bougainville Copper owns the large Panguna mine on Bougainville Island in Papua New Guinea, however Rio Tinto are considering selling its stake in the company after the government passed new mining legislation which converts Bougainville Copper’s mining lease into an exploration lease.
The Panguna mine has been dormant for more than 20 years after its presence on Bougainville island sparked a civil war, with many locals opposed to the mine and sceptical of its benefits.
Bougainville Copper’s exploration lease can be converted into a mining lease, but an application must be approved by the autonomous Bougainville province’s government.
The company said in a statement:
In light of recent developments in Papua New Guinea, including the new mining legislation passed earlier this month by the Autonomous Bougainville Government (ABG), Rio Tinto has decided now is an appropriate time to review all options for its 53.83 per cent stake in Bougainville Copper Limited.
Rio Tinto has been in talks with the Papa New Guinea government and regional government about potentially re-opening the mine, however it has been reported that those talks are at a very early stage.