Bougainville Copper Limited has been told it its license for the Panguna copper and gold mine has been suspended.
BCL said it was considering its position after the Autonomous Bougainville Government’s Registrar of Tenements advised that as a consequence of new mining legislation the company’s rights under the exploration license for the mine had been suspended.
The ABG has picked a new partner to redevelop the long-mothballed mine, which Bougainville’s leaders see as a critical resource for the autonomous Papua New Guinea region’s independence aspirations.
A new 25-year mining licence has been granted to Bougainville Minerals Ltd, a company controlled by the ABG and local landowners.
The ABG’s President, Ishmael Toroama said the new development was a significant strengthening of landowner participation.
“Landowner rights, compensation rights, local content participation and benefit sharing rights and royalties are preserved. Landowner equity participation is preserved and strengthened,” Toroama said in a statement.
BCL, the long-time license holder, said it was considering its position as to what steps, if any, it will take.
“The Company is currently reviewing the Bougainville Mining (Amendment) Act 2026 to confirm the position set out in the letter from the Autonomous Bougainville Government’s Registrar of Tenements, and that the legislation referred to is in fact enacted and having the force of law,” BCL said in a notice to the ASX.
Panguna is one of the world’s largest copper-gold deposits, still containing an estimated 5.3 million tonnes of copper and 19.3 million ounces of gold.
The mine has been closed since 1988, when grievances over mine operations ignited the Bougainville civil war.
The ABG has also engaged an Indian company, Lloyds Metals, to partner with the local-based company in efforts to redevelop the mine.
Lloyds recently moved machinery and equipment into the Panguna mine area in order to conduct feasibility and exploration work.
