ABSTRACT
The development strategy pursued by the Administration in the years prior to 1972 was based on the 1963 World Bank Report, which recommended monetary sector expansion based largely on production of agricultural and forestry goods for export. The government would wish to ensure that Bougainville Copper Limited's (BCL) training and localisation policies would maximise indigenous participation in the Company’s activities, and that the adverse environmental effects of the Panguna mine on surrounding rural areas be minimised. Negotiations took place over the period May to September 1974. BCL rejected the government’s first proposal out of hand. The quality of political leadership was also high. Unity was maintained throughout, and no ambiguity existed as to the commitment of any minister to the pursuit of Papua New Guinea’s interests. While the taxation framework is generally appropriate, it is also necessary to assess Papua New Guinea’s broader mineral development strategy, based on the concept of maximising mineral revenues for use in rural development.
