Rio Tinto Faces Lawsuit over Mismanagement of Bougainville MineRio Tinto Faces Lawsuit over Mismanagement of Bougainville Mine In Papua New Guinea’s autonomous region of Bougainville, thousands of residents have filed a class action lawsuit against Rio Tinto and its former subsidiary Bougainville Copper Ltd (BCL). The legal action alleges historical mismanagement of the massive Panguna copper mine, which operated in the 1970s and 1980s. Since the lawsuit’s inception in May, over 1,500 additional individuals have joined, bringing the total number of claimants to more than 4,500. They are seeking billions of dollars in damages for the environmental and social damage caused by the mine. “The large increase in claimants reflects the strong belief among locals that Rio Tinto and BCL must be held accountable for decades of environmental destruction,” said Martin Miriori, the lawsuit’s lead plaintiff and paramount chief of the Basikang Taingku clan. The Panguna mine was closed in 1989 due to local protests over revenue payments. This led to a decade-long civil war that resulted in the deaths of at least 20,000 people. Neither Rio Tinto nor BCL has addressed the environmental or social impacts of the mine’s operations. The lawsuit, supported by 71 local clan leaders, seeks compensation for the environmental damage caused and loss suffered by villagers in the affected region. In February, Bougainville Copper received a five-year extension of its exploration license for the Panguna project. Rio Tinto previously relinquished its stake in the mine, leaving the governments of Papua New Guinea and Bougainville with equal ownership. “Rio Tinto is reviewing the details of the claim. As this is an ongoing legal matter, we are unable to comment further at this time,” the company stated in response to the lawsuit.
Thousands of people in Bougainville, an autonomous region of Papua New Guinea, filed a class action lawsuit in May against Rio Tinto and its former division Bougainville Copper Ltd (BCL) over what they see as historic mismanagement of the massive Panguna copper mine that operated in the 1970s and 1980s.
Another 1,500 Bougainville residents have joined the class action lawsuit, a 50 percent increase since the lawsuit began, lawyers said in a press release Monday.
More than 4,500 claimants are now seeking damages, expected to run into billions of dollars, for the historic mismanagement of the Panguna copper mine, which has caused widespread environmental and social damage.
“The large increase in the number of claimants demonstrates the strong sense among local people that Rio Tinto and BCL must make amends for decades of environmental destruction,” Martin Miriori, the lead plaintiff in the class action lawsuit and paramount chief of the Basikang Taingku clan, said in the statement.
“This issue will not go away as the lawsuit has garnered widespread support and reminded the world of the devastation caused by the mine operator’s reckless actions.”
“Since the investigation into this claim began three years ago, we have spent significant time meeting with local residents in the affected region, collaborating with scientific experts from various disciplines and taking the necessary preparatory steps to launch the class action,” Matthew Mennilli, a partner at Sydney law firm Morris Mennilli, who is representing the group along with Port Moresby law firm Goodwin Bidar Nutley Lawyers, said:
Panguna was closed in 1989 after local protests over the payment of revenues from the mine led to a ten-year civil war in which at least 20,000 people were killed.
Neither Rio Tinto nor BCL has ever undertaken, nor is committed to undertaking, any form of remediation of environmental or social impacts.
The class action consists of a majority of villagers in the affected Bougainville region and has the confirmed support of 71 local clan leaders. The action seeks compensation for the environmental damage caused to the area and the loss and damage suffered by villagers living in the affected region, lawyers said.
In February, Bougainville Copper was granted a five-year extension to its exploration licence for the Panguna copper-gold project on the South Pacific island.
Rio Tinto gave away its stake in 2016, effectively donating the mine. That left the governments of Papua New Guinea and Bougainville with 36.4% of BCL each.
“We are reviewing the details of the claim. As this is an ongoing legal matter, we are unable to comment further at this time,” Rio Tinto said in an emailed statement to Bloomberg News at the time of the filing in May.
