Caballus mining demands a monopoly over Bougainville

SPECIAL MINING LEASE OSIKAIYANG LANDOWNERS ASSOCIATION INC (5-4832)Level 2, Karoona House
Panguna Town, Panguna District
Autonomous Region of Bougainville, Papua New Guinea

 

 

1 FEBRUARY 2019

PRESS RELEASE

 

CABALLUS MINING DEMANDS A MONOPOLY OVER BOUGAINVILLE, AND THE COMPLETE REMOVAL OF ALL RIGHTS OF CUSTOMARY OWNERS, WITH ZERO UPFRONT INVESTMENT WHILST REFUSING TO EVEN IDENTIFY WHO WILL PROVIDE THE FUNDS, 

IF ANY

 

A highly controversial proposal by an unknown and newly registered company, Caballus Mining (“Caballus”) which is associated with Mr Jeffrey McGlinn is attempting to grab a complete monopoly over all large scale mines in Bougainville. The Caballus plan is to override the fundamental principle of the Bougainville Mining Act - Customary Landowner ownership of the minerals in Bougainville and confer ownership on a McGlinn entity, Bougainville Advance Mining (“BAM”).

 

“Is Mr Jeffrey McGlinn, an unsuccessful horse breeder and ex hospitality manager, from Western Australia, the next rogue who is trying to take advantage of us, the Customary Owners and steal our minerals, by hook or by crook?” asked Mr Philip Miriori, Chairman of the Special Mining Lease Osikaiyang Landowners Association (“SMLOLA”).

 

Mr McGlinn and Caballus have no relevant mine development experience whatsoever, infact Mr McGlinn was originally a mechanic whose only real exposure to mining appears to have been providing earth moving services. Caballus has no assets, and yet is demanding a monopoly on all major large scale mining projects in Bougainville. McGlinn is demanding an initial 40% interest, which will increase further over time, without any upfront cash and only a shallow promise of future money if he is granted those rights first.  

 

“This is just a con job,” Mr Miriori said.

 

When Caballus presented to representatives of SMLOLA earlier last year,  he was officially rejected in writing. This is where it gets confusing as, despite that clear position from the owners of the minerals at Panguna, he is now demanding that the most fundamental principle of the Bougainville Mining Act (“BMA”)- Customary Ownership is stripped from the BMA. McGlinn outrageously says this is to “avoid all the red tape”.  

 

Press reports also suggest his last job lasted less than 12 months and ended in controversial circumstances with Mr McGlinn losing the support of the Indigenous People he was employed by. This is really disturbing for us as this is the very skill he, has claimed, to the Autonomous Bougainville Government (“ABG”).

 

Mr Miriori said, “Mr McGlinn claims he can work with Indigenous People, but his first demand is to get rid of all the Customary Owners rights including the Constitutionally protected Landowner Ownership of the minerals. It is little wonder he lasted less than twelve months in his last job. Having made this demand he would never get a Social License to develop Panguna.”

 

Mr Daveona said “McGlinn is attempting to strip us, the Customary Owners of all our rights, avoiding all the protections afforded to us under the BMA, which were fundamental to the whole Peace Agreement and our Constitution – infact the very grant of autonomy.  The central tenant of our Peace Agreement is good governance.   We will fight this manipulative opportunist to the end – but hope our ABG will step in first and protect all Customary Owners in Bougainville.”

 

Mr Miriori said, “It appears that Mr McGlinn is trying to take advantage of a severe funding crisis which our Government faces in the lead up to the Referendum on Independence, promising money but only if he is first given the keys to every large scale mine in Bougainville with zero upfront investment. Who is he fronting for? Whoever puts up the money will ultimately control BAM, and all of Bougainville’s mines.  When asked by members of the House of Representatives who would provide the money if he was successful – he refused to answer. The Caballus proposal formally states the investors will be Sovereign Governments. This raises a whole raft of national security issues.”

 

“Mr McGlinn was ejected from Parliament – as he should have been,” said Mr Daveona

 

Mr McGlinn is even demanding that the company, BAM is not incorporated here in PNG, but that it has to be offshore – a British Virgin Island company where it can be impossible to trace the legal or beneficial owners of the shares in a company.  Why is this secrecy demanded?  Transparency, honesty and substance is what we need in Bougainville – not the smoke and mirrors of the $2 Caballus or Mr McGlinn.

 

The SMLOLA has already received legal advice that confirms any such changes to the BMA would be both unconstitutional and unlawful and would be challenged in Court immediately. 

 

Mr Daveona said “Continuing to support Mr McGlinn and his unconscionable demands, to strip Customary Owners of their Constitutional rights, has the capacity to threaten the Peace accord.”

 

 

 

Philip Miriori                                                                           Lawrence Daveona
Chairman SMLOLA                                                                  Special Advisor-Former Chairman