Greetings Contrarian,

This is The Next Big Rush, your daily drop of mining / energy news. Where we come together and thank the Lord above we didn't go all in on a project like this one.

Alright, since today is Saturday and The Editor's dinner is about two hours late, we feel it's time to do another special edition of TNBR:

The Horror Stories

This is a special issue that will tell the dark stories of this market.

Today we're naming names.

It's 1960-something in Papua New Guinea, and a subsidiary of Rio Tinto has just discovered a gargantuan copper deposit in the Panguna region of Bougainville Island.

The company begins mining operations in 1972, and the mine quickly becomes one of the largest copper producers in the world, containing an estimated 5.3m tons of copper and 19.3m ounces of gold to boot. 🤯

As luck would have it, the mine is controversial from the start.

Many of the locals, who are primarily indigenous, claim that they have not been adequately consulted about the project and that the environmental impact of the mine is not being properly addressed.

There are also concerns about the distribution of profits from the mine. (Where have we seen this before?)

As a result of this, in the late 1980s, a group of Bougainvilleans form the Bougainville Revolutionary Army (BRA) and begin a campaign to shut down the mine.

The conflict between the BRA and the Papua New Guinea government escalates into a full-scale civil war that lasts from 1989 to 1998 and results in the deaths of more than 20,000 people.

Almost immediately, Rio Tinto closes the Panguna mine and withdraws from Bougainville altogether. The mine has remained closed ever since, and the environmental damage caused by the mine has not been fully addressed.

The conflict also has lasting effects on the people of Bougainville, including the displacement of tens of thousands of people and the disruption of traditional ways of life.

In 2001, the Bougainville Peace Agreement is signed between Bougainvillean leaders and Papua New Guinea, effectively ending the civil war. The agreement includes a provision for a referendum on independence, which is eventually held in 2019.

The results of the referendum are overwhelmingly in favor of independence, with 98% of the population voting in support. However, the results are currently non-binding and must still be ratified by Papua New Guinea's parliament, which holds the ultimate decision-making power on the matter.

In 2016, Rio Tinto transferred its 53.83% majority shareholding in the project to the Autonomous Bougainville Government (ABG) and the Papua New Guinea Government for zero compensation.

Two years ago, Rio Tinto and Bougainville community members, represented by the Human Rights Law Centre (HRLC), announced they had reached an agreement to identify and assess legacy impacts of the former mine.

The sheer impact of a handful of people at the top with enough power and not enough foresight has turned a beautiful world-class project into a literal war.

Sad.

We hope things will be resolved and we will once again see this beauty of a project work in as peaceful, sustainable way as possible. IF that's ever possible.

Be careful out there, it's a jungle!

The Editor,

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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational/entertainment and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.