The mining giant faces legal action in the United States after a group of Papua New Guinea landowners filed a law suit claiming the Bougainville mine caused environmental destruction and crimes against humanity.

The lawsuit was filed in the San Francisco District Court on Wednesday.

"The last thing the people of Bougainville need is an interruption to the peace process initiated by US lawyers in search of contingency fees" - Rio Tinto

Rio Tinto holds a 53.6% stake in the mine, while the PNG government has a 27.3% holding, with public shareholders owning the balance.

"Bougainville Copper and Rio Tinto categorically reject the allegations of human rights abuse and environmental damage," a Rio Tinto spokesman said today.

"All of Bougainville Copper's operation were conducted under an agreement ratified by the PNG Government and met those obligations."

US lawyer Steve Berman is leading the action, which claims the company engaged in a joint venture with the PNG government to maintain a copper mine on the island.

This in turn resulted in international environmental violations and crimes against humanity stemming from a military blockade motivated by civilian resistance to the mine, it claims.

The action appears to be filed against London-based Rio Tinto Plc rather than the Australian-listed Rio Tinto Ltd using the Alien Tort Claims Act.

It relates to a period from 1989 to 1999, however, mining activity ceased in 1989 as a result of secessionist activities on the island.

"The suit seeks to represent Bougainvilleans who continue to be exposed to toxins resulting from the Panguna mine, individuals who lost property due to ongoing environmental contamination, and people injured or killed during the Bougainville conflict between 1989 and 1999," according to a statement originating from Berman.

The Rio Tinto spokesman added the last thing the people of Bougainville needed was an interruption to the peace process initiated by US lawyers in search of contingency fees.

Melbourne law firm Slater & Gordon is assisting in the action and has lawyers Peter Gordon and Nick Styant-Browne in the US.

Slater & Gordon is also leading a class action against BHP Co Ltd by another group of PNG landowners over claims of environmental damage from the Ok Tedi copper mine.

Rio shares ended 1.7c lower to $26.88.

 

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