Bougainville Copper tries to stop scrap being stolen

Bougainville copper Ltd has launched court action to stop scrap metal being taken illegally from its moth-balled operations on the strife-tom Papua New Guinea island.

The company said it appeared build ings and equipment at the towns of Lolo ho, Arawa and the Panguna mine were being destroyed for the sourcing of scrap metal.

“The company has taken court action to have this illegal industry stopped,” the

company said in its half-year report.

“The cost of start-up of operations will increase as a result and adds to the eco nomic uncertainty of resuming produc tion.”

The mine was the trigger for the seces sionist crisis on the island that escalated in 1989 after disgruntled land owners demanded billions of dollars in compen sation and complained of environmental damage caused by the mine.

Bougainville Copper, majority-owned by Rio Tinto Ltd, posted a net profit of

$2.7 million for the six months to June 30, 1999, a 12 per cent gain on the $2.4 mil lion posted in the previous corresponding half. “The primary reason for the profit is due to the interest on funds invested in Papua New guinea,” the company said.

The company emphasised, even with the resumption of operations, a major write-down of assets will be required.

“The value of the kina against the Aus tralian and United States dollars continues to be of concern, as does the economic sit uation within Papua New Guinea. (AAP)