Media Statement: ABG clarifies Panguna EL01 and partnering arrangements
The Autonomous Bougainville Government (ABG) wishes to clarify recent developments around Bougainville Copper Limited (BCL), its partnering process, and the redevelopment of the Panguna mine project.
Firstly, the ABG formally announces that Bougainville now holds a confirmed 72.9% shareholding in BCL, comprising 36.45% shares held by the Autonomous Bougainville Government and 36.45% shares held by Bougainville Minerals Limited. This makes Bougainville the clear and controlling majority shareholder in BCL.
As majority owner, the ABG is fully entitled under applicable corporate law to determine the strategic direction of the company in the best interests of the people of Bougainville.
With regards to the BCL and Panguna process, the ABG operates in two distinct capacities:
1. As Regulator under the Bougainville Mining Act; and
2. As Majority Shareholder in BCL.
The developments involving BCL, CMOC, and Lloyds Metals and Energy Limited (LMEL) are occurring strictly at the shareholder level. There are no breaches of the Bougainville Mining Act 2015 and no regulatory issues. These shareholder decisions do not alter the fact that BCL remains the lawful holder of Exploration Licence EL01 over Panguna.
There are no two competing redevelopment arrangements. BCL, as EL01 licence holder, remains responsible for implementing its approved work program and complying with all statutory obligations. These include land access and compensation agreement implementation, landowner identification studies, social mapping studies, geological and engineering studies, environmental baseline studies, and other compliance requirements under the Mining Act.
However, it must be acknowledged that BCL does not presently have the technical or financial capacity to advance EL01 activities independently. BCL has proposed the introduction of CMOC as a partner to provide funding and technical capability. That proposal would have resulted in approximately a 20% dilution of Bougainville’s majority shareholding. The President and the Bougainville Executive Council have rejected that proposal.
Instead, the ABG has endorsed the engagement of LMEL as a partner to provide the necessary financial and technical resources to progress EL01 activities. This decision is lawful and consistent with the ABG’s authority as the confirmed majority shareholder of BCL.
It is also important to clarify that recently referenced Panguna redevelopment timelines are not timelines for mine production. Panguna remains at the Exploration Licence (EL01) stage. The President’s comments on timelines relate specifically to increasing Pre-Feasibility Study (PFS) and Feasibility Study (FS) on-site activities under the EL01 exploration licence.
The ABG remains committed to ensuring that the redevelopment of Panguna proceeds in a lawful, transparent, and orderly manner, delivering lasting benefits for the people of Bougainville.
Hon. Ishmael Toroama, MHR
President and Minister for Mining & Petroleum
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