This was said by chairman Peter Taylor when he addressed shareholders at the company's annual general meeting on Wednesday.

However, Taylor said that the company still had the vision to return to exploration and profitable, sustainable mining remained the objective.

"The company is well positioned to recognise the opportunities inherent in recent challenges and to maintain progress in the new year. The Bougainville people, who will soon participate in a referendum on independence, clearly see the importance of economic self-sufficiency that could potentially be provided by mineral resource exploration and development," Taylor said.

Taylor said that the company's relationship with Autonomous Bougainville Government President John Momis remained cordial and that in April, BCL management joined a business delegation to Buka where ministers and business leaders expressed support for BGL.

He added, however, that there was still "some opposition from vested interest groups" to the return of BCL and ABG policy on mining.

But Taylor said that relationships with landowners were mainly positive and settlement had been reached on long-standing claims relating to the year after the suspension of mining.

Taylor said that 53.83% shareholder Rio Tinto was still conducting a strategic review of its holding and the "BCL board continues to engage with Rio Tinto regarding the status of the review".