Papua New Guinea has formally transferred its stake in Bougainville Copper to the Autonomous Bougainville Government (ABG).
The deal, signed on June 26, gives the ABG 72.9 per cent ownership in the ASX-listed company, which operates the Panguna copper-gold-silver mine in central Bougainville. The remaining 27.1 per cent of shares continue to be held by public and institutional investors.
PNG Prime Minister James Marape said the transfer represented the conclusion of a process that started in 2016, when Rio Tinto divested itself from the company. Rio divided its 52 per cent stake between the two authorities, with the view that both would have a say in the mine’s future.
“It’s a big step for Bougainville to have more control over its mineral wealth,” Marape said. “It is our expressed commitment to transfer the entirety of the shareholding so the landowners of Panguna and the people of Bougainville can benefit better in the mine.”
According to a stock exchange filing by the company, the PNG Government first proposed the gifting of the shares in December 2019. This decision was then endorsed by the joint supervisory body, which was set up to facilitate cooperation between the PNG Government and the ABG, and also the PNG National Executive Council.
Bougainville Copper company secretary Johnny Auna confirmed that the transfer was completed at no cost to the ABG.
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