10 hours ago
PNG hands over majority stakes in BCL to Autonomous Bougainville Government
The Papua New Guinea government is preparing to transfer its 36.45 percent ownership in Bougainville Copper Limited (BCL) to the Autonomous Bougainville Government.
This transfer, valued at over PGK140.3 million (approx. NZ$56m) at current market rates, is expected to be formally announced by Prime Minister James Marape on Thursday.
The transfer includes 146,175,449 ordinary shares in BCL. These shares are currently held by the State through the Department of Treasury and Eda Minerals Limited, a fully-owned subsidiary of Kumul Minerals Holdings.
This represents a total of 36.45 percent of BCL's issued capital, in two separate tranches of 19.06 percent and 17.39 percent share respectively.
The transfer follows a decision by the National Executive Council for the people of Bougainville to own the shares currently held by the State.
This decision also meets a directive from the Joint Supervisory Body (JSB) in its meeting on 12 March 2020 for the State's 36.45 percent shareholding in BCL to be transferred to ABG.
"I am pleased to see us making progress in this matter," Marape said.
"It is our expressed commitment to transfer the entirety of the 36.45 percent shareholding to the government of Bougainville so the landowners of Panguna and the people of Bougainville can benefit better in the mine."
The transfer of shares will result in the ABG and the people of Bougainville assuming ownership of 72.9 percent of BCL's issued capital. This transfer is being carried out at no cost to the ABG.
Bougainville Copper Limited is a publicly listed company on the Australian Stock Exchange. Its share price is currently trading at AU$0.39 per share.
The current market value of the shares being transferred to the people of Bougainville through ABG is AU$54,742,705. When converted to PNG currency, this is worth PGK140,365,511.
Marape commended the ABG leadership of President Ishmael Toroama.
He said this is a mutually reached decision on both sides that reflects the work of the two governments.
