History of Bougainville - Panguna Mine Conflict

Panguna Mine Conflict

The mine at Panguna had been perhaps the most major sticking point between Bougainville and the mainland. The mine was the largest non-aid revenue stream of the Government of Papua New Guinea from the nation’s independence in 1975 to the mine’s closure. The national government received a 20% share of profit from the mine of which the Bougainvilleans received 0.5–1.25% share of the total profit. It was vitally important to the economy of Papua New Guinea, but the people of Bougainville were seeing little benefit from it. Bougainvillean leaders alleged that the mine had devastating environmental consequences for the island. They also claimed that Bougainville Copper had set up a system of apartheid on the island, with one set of facilities for white workers, and one set for the locals. They accused Bougainville Copper Ltd., of being responsible for poisoning the entire length of the Jaba River, and causing birth defects, as well as the extinction of the flying fox on the island.

These grievances led to the decision in late 1988 of two cousins and local leaders, Francis Ona and Pepetua Serero, to take up arms against the Papuan government. Ona himself had worked for Bougainville Copper, and had witnessed the effects the mine was having on the landscape of the island.

In 1987, Ona and Serero called a meeting of landowners at Panguna, and as a result, the Panguna Landowners' Association was formed, with Serero as 'chairlady', and Ona as General Secretary. They demanded billions in compensation from CRA — a total of half the mine's profits since it began in 1969.

A report on the SBS Dateline program, broadcast on 26 June 2011, states that Sir Michael Somare, at the time Papua New Guinea's Opposition Leader, had signed an affidavit in 2001 specifying that the PNG government was acting under instruction from mining giant Rio Tinto. SBS reported on 27 June 2011 that the claim is vigorously rejected by Bougainville Copper Limited and Rio Tinto.