Bougainville News - 30/1/98 Via NY Transfer News Collective * All the News that Doesn't Fit source: VIKKI@lexsun.law.uts.edu.au Sun Feb 1 20:09:49 1998 The National - Business - Friday 30 January, 1998 New deed needed to restart Panguna mine PORT MORESBY: Bougainville Copper Ltd will require a new agreement between the company and shareholders on the terms under which mining can resume on the multi-million Panguna mine, according to the company secretary, Paul Coleman. However, the company does not want to jeopardise the peace initiatives by prematurely raising questions concerning the future of the mine, he said. Mr Coleman made the remarks while announcing a K1.4 million profit for the year ending Dec 31, 1997. Mr Coleman said access to the mine site at Panguna to enable a detailed review of the company's assets has not been possible. When the conditions on Bougainville permit, an assessment of the economic viability of restarting operations will be undertaken, he said. Mr Coleman said the net profit of K1.4 million for the year was based on actual transactions for the year. No provisions have been made for depreciation, and amortisation and no further provision has been made for deterioration, damage and pilferage of assets over K350 million provided in 1991. It is emphasised that even with a resumption of operations, a major write down of assets from the pre-closure value may be required, he said. Accordingly, the 1991 provision of K350 million may eventually prove to be an inadequate sum with which to reflect the loss in value of the company's assets. On this basis, the net carrying value of fixed assets at balance date was K200.1 million and cash balance were K63 million, he said. Mr Coleman said "of particular interest to the company is the encouraging move towards peace on Bougainville." He said the meetings in Burnham, New Zealand, which resulted in the signing of the "Burnham Truce" and the "Burnham Declaration Monitoring Group" and the recent talks held at Lincoln University have provided hope that sustainable peace was possible. "Notwithstanding the encouraging prognosis for peace on Bougainville and the company's commitment to the peace process, we remain cautious about an early return to Panguna. "The first and paramount issue is a sustainable peace settlement. The company does not want to jeopardise the current peace initiatives by prematurely raising questions concerning the future of the Panguna mine. "It is recognised that any return to production at Panguna will require an agreement between the company and shareholders on the terms under which mining can be carried out," he said. ================================================================= NY Transfer News Collective * A Service of Blythe Systems Since 1985 - Information for the Rest of Us 339 Lafayette St., New York, NY 10012 http://www.blythe.org e-mail: nyt@blythe.org ================================================================= nytpac-02.03.98-11:07:04-18829