PNG minister denies blame over Panguna mine attack

Papua New Guinea's National Government cannot be held responsible for the destruction at Lloyds Metals & Energy's camp in Panguna, on the Autonomous Region of Bougainville, according to Trade and Investment Minister Richard Maru.

Maru said he had personally warned the Indian-owned mining company against setting up in Panguna long before Wednesday's arson attack, describing the area as unstable and unsuited to new investment at this stage.

Trade and Investment Minister Richard Maru.

"I repeatedly advised the management of Lloyds Metals & Energy against investing in Panguna, knowing it was highly volatile due to numerous factions and the environment was not conducive for investment," he said in a statement.

Reports from Bougainville indicate that heavy machinery and vehicles belonging to the company were torched at the mine site early yesterday morning. Lloyds Metals & Energy is a major name within India's metals and mining industry.

Maru said the company had gone ahead with the investment against his repeated warnings and would now have to bear the consequences of that choice.

"I feared the very outcome that has now transpired. Despite my advice, the company took a decision to invest in Panguna and it must now accept full responsibility for what has happened. They took it upon themselves not to heed National Government advice," he said.

While condemning the attack outright, Maru acknowledged that outstanding landowner grievances in the area had never been properly addressed.

"I do appreciate that many things were not sorted out like the landowner issues. I am saddened by what has happened but as the Minister responsible, I had done my part by advising the Lloyds Metals & Energy against this investment because it was risky and I foresaw what was coming," he said.

Maru called on Bougainville's leadership to take action against those behind the attack.

"I call on the Government and people of the Autonomous Region of Bougainville to deal with those involved in this attack if they are serious about attracting investments into the region."