http://www.theaustralian.com.au/masthead/theoz/state/4380910.htm [The Australian] 19mar99 Rio ponders break-up of Panguna copper By RICHARD SPROULL and AAP RIO Tinto is considering divestment of its dormant Panguna copper mine on the Papua New Guinea island of Bougainville among a number of options, 10 years after rebel activity forced it to shut the operation down. The chairman of Rio-controlled, publicly listed Bougainville Copper, Barry Cusack, told shareholders in Port Moresby yesterday selling Panguna – which has been a focus of secessionist activities since 1989 – would be a potential option for the company as well as alternative proposals for investments in exploration, mining and non-mining activities. "After 10 years of studies aimed at returning to production on Bougainville, the directors believe it is time to investigate alternatives," Mr Cusack said. "Among the options to be considered is the divestment of the company's assets on Bougainville." Mr Cusack said depressed copper and gold prices, the devaluation of company assets on Bougainville and the slow pace of the peace process on the island made it likely that it would be some years at least before mining at Panguna became feasible again. BCL still had no access to the mine and company property continued to be vandalised, yet Mr Cusack said the company had not given up on retaining the operation. Meanwhile, Rio's aluminium arm, Comalco, says that its Asian markets will emerge strongly in the medium term, maintaining that the US and Europe remain the key to market stability. Chairman John Morschel said the outlook for the company this year was for low growth in demand for aluminium and a modest surplus of production over demand with little prospect for an improved share price. "In the longer term, industry analysts expect demand for aluminium to grow at an average rate of 2 to 3 per cent per annum, the capacity of smelters at least equivalent to Boyne Island Line 3 each year," he said. ********************************************************************** This public article was forwarded by NOBBY <[EMAIL PROTECTED] Mail subscriptions to me with subjects: "subscribe BougI-[x?]L" or "change to ..-[x?]L" <your_eMail-adr. [BougI-xL] is the eXcerpt of [BougI-L]. Leftlink - Australia's Broad Left Mailing List mailto:[EMAIL PROTECTED] http://www.alexia.net.au/~www/mhutton/index.html Sponsored by Melbourne's New International Bookshop Subscribe: mailto:[EMAIL PROTECTED]?Body=subscribe%20leftlink Unsubscribe: mailto:[EMAIL PROTECTED]?Body=unsubscribe%20leftlink
