Panguna Mine

Country Manager of Rio Tinto Andrew Copper revealed this to Prime Minister James Marape in a meeting with him yesterday in Port Moresby.

The meeting saw the attendance of Rio Tinto PNG Country Director Andrew Cooper, along with Deputy Country Director Cornelius Soagai.

During the meeting, Mr. Cooper updated the Prime Minister on the progress of the Panguna Mine Legacy Impact Assessment, initiated by an agreement between Rio Tinto and representatives of the Bougainville community members through the Human Rights Law Centre.

The focal point of the meeting was President Toroama's disclosure regarding the government's recent verdict concerning the granting of the Exploration Licence (ELO1) over the Panguna former Special Mine lease area to Bougainville Copper Limited (BCL).

Addressing the assembly, President Toroama underscored the historical significance of the gathering, marking the culmination of a series of dialogues facilitated over the past two years through the Panguna Mine Dialogue process.

The announcement came last Friday 2^nd February, following the decision by the Autonomous Bougainville Government (ABG).

President Ishmael Toroama emphasized the significance of the Panguna project for Bougainville, highlighting its potential for high-impact development. 

The issuance of the license marks a pivotal moment, setting the stage for comprehensive pre-feasibility and feasibility exploration activities in the coming years.

“I want to assure our people and all stakeholders that this significant development has undergone rigorous scrutiny within the framework of the legal process. 

“I wish to assure all stakeholders that the grant of EL01 marks a significant milestone that will finally settle the longstanding court proceedings between ABG and BCL. This is welcoming news given that the ABG is a major shareholder in BCL. 

Bougainville President Ishmael Toroama said that 98 per cent of Bougainvillean’s desire for an independent sovereign state of Bougainville, was firmly established by the results of the 2019 Bougainville Referendum.

President Toroama said the government and the people must now work together to empower Bougainville’s socioeconomic capacity to support its independence endeavour.

“The Panguna Mine is a multi-billion-kina resource that has remained dormant for almost 40 years now,” Toroama said.

Panguna landowner and Bougainville’s Minister for Community Government, Theonila Roka Matbob, issued the reminder on the second day of the Community Affairs and National Content Conference and Expo (CANCONEX) in Lae, Morobe Province.

PNG’s largest copper mine, which operated for 17 years from 1972 until 1989, abruptly closed due to the Bougainville Conflict.

“We fought amongst each other and we all forgot that the initial agenda was fixing the law,” said Matbob, who lost her father during the 10-year conflict.

The second day of PNG’s inaugural event started with discussions on lessons learnt from the closure of the Panguna mine, which was operated by Bougainville Copper Limited (BCL) from 1972 until 1989, when the Bougainville Crisis forced its closure. 

Sharing their experiences were the former chief executive officer of the Bougainville Development Corporation, Paul Nerau, PNG Council of Women’s former president, Theresa Jaintong, and Bougainville’s Minister for Community Government and Member for Ioro Constituency, Theonila Roka Matbob.

Families have set up makeshift houses in the gaping pit, and men, women and children pass their days digging for whatever gold and copper they can reach.

It's risky and dangerous work, but many feel they have no other option.

They live among decaying infrastructure and the skeleton of the mine's concentrator, left over from the massive operation run by Bougainville Copper Limited (BCL) between 1972 and 1989.

President Toroama issued the statement following the move by several parties who are trying to raise a class action suit against Rio Tinto for their role in developing the Panguna Mine and the effects it had on the environment and the communities around the mine.

The Panguna Legacy Impact Assessment is being funded by Rio Tinto through Tetra Tech Coffey who are conducting the assessment.

It is also the first time Rio Tinto has made any commitment to Bougainville since the cessation of mining operations in Panguna, Central Bougainville.

The conflict proved to be one – if not the darkest periods – of modern Papua New Guinea’s history with the destruction of billions of kina worth of property, the loss of over 20,000 lives and the largest single call out of the Papua New Guinea Defence Force.

Whilst talks on reopening the mine are pending, the Autonomous Bougainville Government, under the leadership of President Ishmael Toroama, has embarked on ensuring the landowners of the Panguna area come to a mutual agreement on the issue and are properly reconciled.