en.Wedoany.com Reported - The Autonomous Bougainville Government in Papua New Guinea has approved the Panguna copper-gold mine to enter the restart preparation and feasibility study phase. Under the LSML-01 Preparation Works and Feasibility Study Commencement Certificate issued by the government, Bougainville Mining Limited may carry out the preliminary work required for the mine's redevelopment through its approved development partner, Lloyds Panguna Metals & Energy, a subsidiary of India's Lloyds Metals and Energy.

The approved scope of work covers technical, engineering, environmental, social, and economic assessments, the results of which will be used to demonstrate future development options for the Panguna mine. The certificate issued this time only permits the commencement of preparation works and feasibility studies, and does not include mine construction or commercial production; separate statutory approvals and a new commencement certificate will still be required for subsequent entry into the construction and mining phases.

The Panguna mine, located on Bougainville Island, was previously operated by Bougainville Copper Limited, which was majority-owned by Rio Tinto. The mine was once one of the world's major copper mines and contributed approximately 44% of Papua New Guinea's export revenue. Affected by the Bougainville conflict, the mine was closed in 1989 and has remained shut for nearly 40 years.

The project accelerated in 2026. In June, the Bougainville government approved the grant of a 25-year large-scale mining lease, LSML-01, to Bougainville Mining Limited, and passed amendments to the Mining Act, establishing a dedicated approval pathway for the redevelopment of the Panguna mine. The issuance of this commencement certificate moves the project from the tenure and institutional arrangement phase into the site preparation and feasibility study phase.

The Bougainville government holds a 72.9% stake in Bougainville Copper Limited. Previously, the government rejected a cooperation proposal put forward by Bougainville Copper Limited and CMOC Group for the Panguna project, and subsequently selected Lloyds Metals and Energy as the preferred development partner to provide technical, financial, and feasibility study support to the project.

The redevelopment of the Panguna mine still requires land access, landowner identification, social mapping, environmental studies, geological exploration, engineering studies, and community consultation. Whether the mine can enter the substantive construction phase will depend on the feasibility study results, subsequent regulatory approvals, and the engagement arrangements with landowners and local communities.