Bougainville Authorizes Lloyds Metals to Plan Panguna Mine Restart

The Autonomous Bougainville Government authorized Lloyds Metals & Energy Ltd. on August 7 to begin preparatory works and feasibility activities for the redevelopment of the Panguna copper mine. The Indian iron ore producer was selected as the development partner for the government-owned Bougainville Minerals Ltd., winning the contract over competition from China's CMOC Group Ltd.

The project targets reserves estimated at 5.3 million tons of copper and 19.3 million ounces of gold, with a total valuation of approximately $160 billion. The mine has remained closed since 1989, following protests over revenue distribution and environmental damage under the ownership of Rio Tinto. Those tensions contributed to a civil war that resulted in up to 20,000 deaths.

While Lloyds Metals is now permitted to conduct planning and assessment, the government has not yet granted permission for construction or production. The redevelopment process will occur in stages, with each phase requiring separate official approvals.