Mining company Bougainville Copper Ltd is taking an arm of the Bougainville government to court.
Panguna mine. Photo: Wellington Chocolate Factory
This came after the autonomous government in the Papua New Guinea region announced late last year a moratorium on mining at Panguna, which had been abandoned in 1989 after the civil war started.
Two companies are vying to re-open Panguna but Bougainville President John Momis said to get the nod, the successful company must first win the trust of the people and BCL is yet to do this.
Meanwhile a mining wardens meeting in central Bougainville in December turned down BCL's request for its exploration licence to be extended.
But the company is not giving up and secretary Mark Hitchcock says they want the licence restored, hence their application for a judicial review.
"We have taken the regulator , which is the Bougainville Government, as the Department of Mineral and Energy Resources, to court. We are seeking leave to apply for a judical review of that decision, to not renew the exploration licence."
The Bougainville government is the main shareholder in Bougainville Copper Ltd, with 36%, after it was given the lion's share of equity by Rio Tinto when that company walked away from involvement in BCL two years ago.
Mr Hitchcock say the ABG leadership has told him that the company has to do what it has to do to protect the interests of all of its shareholders.
