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Asia Times
2 days ago
- Business
- Asia Times
How China is paving way for Bougainville independence
Bougainville, an autonomous archipelago currently part of Papua New Guinea, is determined to become the world's newest country. To support this process, it's offering foreign investors access to a long-shuttered copper and gold mine. Formerly owned by the Australian company Rio Tinto, the Panguna mine caused displacement and severe environmental damage when it operated between 1972 and 1989. It also sparked a decade-long civil war from 1988 to 1998 that killed an estimated 10,000 to 15,000 civilians and caused enduring traumas and divisions. Industry players believe 5.3 million tonnes of copper and 547 tonnes of gold remain at the site. This is attracting foreign interest, including from China. Australia views Bougainville as strategically important to 'inner security arc.' The main island is about 1,500 kilometers from Queensland's Port Douglas. Given this, the possibility of China's increasing presence in Bougainville raises concerns about shifting allegiances and the potential for Beijing to exert greater influence over the region. Bougainville is a small island group in the South Pacific with a population of about 300,000. It consists of two main islands: Buka in the north and Bougainville Island in the south. Bougainville has a long history of unwanted interference from outsiders, including missionaries, plantation owners and colonial administrations (German, British, Japanese and Australian). Two weeks before Papua New Guinea received its independence from Australia in 1975, Bougainvilleans sought to split away, unilaterally declaring their own independence. This declaration was ignored in both Canberra and Port Moresby, but Bougainville was given a certain degree of autonomy to remain within the new nation of PNG. The opening of the Panguna mine in the 1970s further fractured relations between Australia and Bougainville. Landowners opposed the environmental degradation and limited revenues they received from the mine. The influx of foreign workers from Australia, PNG and China also led to resentment. Violent resistance grew, eventually halting mining operations and expelling almost all foreigners. Under the leadership of Francis Ona, the Bougainville Revolutionary Army (BRA) fought a long civil war to restore Bougainville to Me'ekamui , or the 'Holy Land' it once was. Australia supported the PNG government's efforts to quell the uprising with military equipment, including weapons and helicopters. After the war ended, Australia helped broker the Bougainville Peace Agreement in 2001. Although aid programs have since begun to heal the rift between Australia and Bougainville, many Bougainvilleans feel Canberra continues to favor PNG's territorial integrity. Bougainville school children display a giant flag of Bougainville during the 2005 celebration of the swearing in of the new assembly for the island. Photo: Lloyd Jones / AAP via The Conversation In 2019, Bougainvilleans voted overwhelmingly for independence in a referendum. Australia's response, however, was ambiguous. Despite a slow and frustrating ratification process, Bougainvilleans remain adamant they will become independent by 2027. As Bougainville President Ishmael Toroama, a former BRA commander, told me in 2024: We are moving forward. And it's the people's vision: independence. I'm saying, no earlier than 2025, no later than 2027. My benchmark is 2026, the first of September. I will declare. No matter what happens. I will declare independence on our republican constitution. Bougainville leaders see the reopening of Panguna mine as key to financing independence. Bougainville Copper Limited, the Rio Tinto subsidiary that once operated the mine, backs this assessment. The Bougainville Autonomous Government has built its own gold refinery and hopes to create its own sovereign wealth fund to support independence. The mine would generate much-needed revenue, infrastructure and jobs for the new nation. But reopening the mine would also require addressing the ongoing environmental and social issues it has caused. These include polluted rivers and water sources, landslides, flooding, chemical waste hazards, the loss of food security, displacement, and damage to sacred sites. The newly built gold refinery in Arawa town. Photo: Anna-Karina Hermkens, Author provided via The Conversation (no reuse) Many of these issues have been exacerbated by years of small-scale alluvial mining by Bougainvilleans themselves, eroding the main road into Panguna. Some also worry reopening the mine could reignite conflict, as landowners are divided about the project. Mismanagement of royalties could also stoke social tensions. Violence related to competition over alluvial mining has already been increasing at the mine. More broadly, Bougainville is faced with widespread corruption and poor governance. The Bougainville government cannot deal with these complex issues on its own. Nor can it finance the infrastructure and development needed to reopen the mine. This is why it's seeking foreign investors. Historically, China has a strong interest in the region. According to Pacific researcher Anna Powles, Chinese efforts to build relationships with Bougainville's political elite have increased over the years. Chinese investors have offered development packages contingent on long-term mining revenues and Bougainville's independence. Bougainville is showing interest. Patrick Nisira, the minister for commerce, trade, industry and economic development, said last year the proposed Chinese infrastructure investment is 'aligning perfectly with Bougainville's nationhood aspirations.' The government has also reportedly made overtures to the United States, offering a military base in Bougainville in return for support reopening the mine. Given American demand for minerals, Bougainville could very well end up in the middle of a battle between China and the US over influence in the new nation, and thus in our region. Looking for gold on the Panguna mine tailings. Photo: Anna-Karina Hermkens via The Conversation There is support in Bougainville for a future without large-scale mining. One minister, Geraldine Paul, has been promoting the islands' booming cocoa industry and fisheries to support an independent Bougainville. The new nation will also need new laws to hold the government accountable and protect the people and culture of Bougainville. As Paul told me in 2024: […]the most important thing is we need to make sure that we invest in our foundation and that's building our family and culture. Everything starts from there. What happens in Bougainville affects Australia and the broader security dynamics in the Indo-Pacific. With September 1 2026 just around the corner, it is time for Australia to intensify its diplomatic and economic relationships with Bougainville to maintain regional stability. Anna-Karina Hermkens is senior lecturer and researcher in anthropology, Macquarie University This article is republished from The Conversation under a Creative Commons license. Read the original article.
Daily Mail
26-04-2025
- Business
- Daily Mail
Stunning tropical island that's stuffed with gold and treasures should be Trump's 51st state, resident says
A lush tropical island with a mountain of gold under its soil could offer Donald Trump what a prominent businessman has declared 'the deal of the century'. John Kuhns, a former investment banker who moved to the island of Bougainville nearly a decade ago, told that if the US supports its independence, America's pockets would be rewarded. Bougainville's president, Ishmael Toroama, previously said that in exchange of U.S. support of its independence from Papua New Guinea, America would get the Panguna mine a significant source of copper and gold. 'If the US comes and says, "Yes, we support Bougainville independence," then, I can say, "Well, the Panguna mine is here. It's up to you,'" Toroama said. Even though the mine has been dormant since 1989, it's still estimated to hold 5.84 million tons of copper and nearly 20 million ounces of gold, which would be worth around $60 billion. Kuhns has a newfound optimism for a deal between Bougainville and the US, likening potential cooperation to President Trump's proposed mineral agreements with Ukraine. 'Given President Trump's interest in securing tangible returns for American diplomatic and military support, Bougainville represents a low-cost, high-yield strategic investment,' Kuhns said. 'It's exactly the type of deal that fits Trump's vision - affordable, strategically invaluable and economically beneficial.' A dazzling tropical island bursting with untapped gold and hidden riches is making headlines - not just for its beauty, but for its potential to become America's 51st state Bougainville is a lush cluster of about 200 islands and has remained largely unknown to most of the world. Beneath its serene tropical façade lies a history marked by a devastating civil war, ongoing economic challenges and renewed global attention due to its vast natural resources - a region increasingly contested by China and Western powers. Kuhns first arrived in Bougainville in 2015 on what seemed an unrelated business venture. While he saw the aftermath of the deadly conflict, he also saw a chance for the locals there to make something new. 'They had fought a civil war and won the right to an independence referendum, but they hadn't gotten their act together economically, and they were afraid they'd run out of time,' Kuhns said. Seeing both opportunity and purpose, Kuhns founded Numa Numa Resources in 2018, a company dedicated to revitalizing Bougainville's struggling economy and supporting the islanders' long-held independence aspirations. A pivotal moment came when Kuhns met Toroama, a legendary figure widely revered across Bougainville as the commander of the Bougainville Revolutionary Army during the civil war. Toroama had transitioned from military leader to respected community mediator. After witnessing Toroama expertly navigate a complex business dispute, Kuhns identified him as a natural political leader. 'I asked him if he'd ever thought about being involved in politics because he was a natural,' Kuhns says. 'He told me about his unsuccessful run for president in 2015, and I said, 'Well, if you ever reconsider, I'm sure my shareholders would be interested in backing you.' With Kuhns's backing, Toroama ran again for president and emerged victorious in 2020. Their partnership quickly solidified around two intertwined goals: rebuilding Bougainville's economy through vital infrastructure projects, and securing international diplomatic support to turn the dream of independence into reality. In late 2023, Kuhns orchestrated President Toroama's visit to Washington, D.C., arranging high-level talks with the Biden administration and the Special Select Congressional Committee on the Chinese Communist Party, chaired by Congressman Mike Gallagher. Their diplomatic mission aimed to demonstrate to U.S. policymakers the viability of an independent Bougainville and its strategic importance in countering China's regional ambitions. Kuhns highlighted the archipelago's extraordinary natural wealth - particularly the Panguna mine, home to roughly $60 billion in copper, gold and silver reserves - as well as its strategic deep-water port at Lolo. 'Bougainville has the best deep-water port in the third island chain,' Kuhns emphasized. 'There are island chains that ring Asia and essentially protect China from us, and protect us from China.' Though initial talks with the Biden administration produced limited results, Kuhns remains optimistic due to shifting political circumstances, especially under former President Trump's strategic approach to foreign policy. The urgency of American involvement is underscored by China's growing influence across the Pacific. Kuhns disclosed persistent Chinese attempts to seize control of the Panguna mine through questionable means, likening it to the fate of nearby Solomon Islands. 'China has tried multiple times to corruptly acquire the mine,' Kuhns warned. 'They'd love to take over Bougainville like they did our neighbors, the Solomon Islands. The Solomon Islands is gone as a country the West can depend on - they're in China's thrall until further notice.' Decisive U.S. action, he believes, is crucial to preventing a similar scenario in Bougainville. Beyond diplomacy, Kuhns's company has initiated essential economic development projects designed to demonstrate Bougainville's readiness for independence. Central among these is a groundbreaking infrastructure initiative — the first major road constructed in over 40 years connecting isolated communities across Bougainville Island. 'When we started constructing the road, local women - who previously walked hours just to buy basic goods - were literally in tears,' Kuhns recounted. 'Roads, hospitals, education - these are essentials for any developing nation.' Despite previous setbacks under the Biden administration, Kuhns remains highly optimistic about a potential collaboration with Trump. Strong congressional support from key figures like Congressman Gallagher and Congressman Neil Dunn bolsters his conviction that Bougainville's independence is attainable. Kuhns is actively planning another strategic trip to Washington, confident that the evolving political climate favors Bougainville's cause. He argues that decisive American support would shift the balance dramatically, compelling Papua New Guinea's parliament - which has stalled on recognizing Bougainville's overwhelming 98 percent pro-independence vote - to finally relent. 'If the U.S. was to support Bougainville, PNG would have no real argument,' Kuhns asserts. 'Then the world would say, "Just let them go."' Ultimately, Kuhns sees Bougainville not merely as another aspiring nation but as a beacon of successful self-determination. Through strategic alliances and sustained economic growth, he believes Bougainville could reshape Pacific geopolitics. 'With the right support,' Kuhns concludes confidently, 'Bougainville's independence isn't just possible; it's inevitable.'
