While I admire Rio Tinto for finally setting the wheels in motion to compensate the people of Bougainville for the horrendous damage caused by its Panguna copper mine, I am stunned at the company’s strategic naivety.

Instead of taking control of an issue that has festered since 1989 by making a firm commitment to actually pay the affected residents of Bougainville, Rio chief executive Jakob Stausholm opted for a process that left the question of compensation in limbo.