Bougainville Parliament passes Bougainville Mining (Gold Production Levy Amendment) Act 2025
The Bougainville House of Representatives today passed the Bougainville Mining (Gold Production Levy Amendment) Act 2025.
The new law amends specific provisions of the Bougainville Mining Act 2015 to provide a clear legal framework for the imposition, collection, and administration of a Gold Production Levy on gold mined in Bougainville—whether or not the gold is processed within the region.
President Toroama when presenting the Bill to Parliament as Minister for Mining, described it as a practical reform that secures a fairer share of Bougainville’s natural resources wealth for its people.
“The changes are technical in nature, but their effect is significant. They will improve compliance, increase transparency and help ensure that the benefits of gold production in Bougainville flow more directly to contribute to internal revenue for the ABG,” President Toroama stated.
The amendment introduces two different rates for the gold levy. A ten percent levy being applicable to gold other than that produced by an ABG approved refinery facility, and a five percent levy being applicable on gold produced by an ABG approved refinery facility.
The amendment Act makes the following key seven changes:
- it introduces clearer reporting obligations for licensed gold dealers, including the requirement to record the date and amount of each payment of a gold production levy by the dealer in dealings register against the record of the purchase or sale of the gold.
- It imposes a ten percent levy on gold mined in Bougainville, other than gold produced by an ABG approved refinery, which is at a lower rate of five percent, for reasons to provide a competitive edge to the ABG refinery facility.
- It provides for the gold production levy to be paid to the Bougainville Chief Collector of Taxes and into the Bougainville Consolidated Revenue Fund, before the gold is transported out of Bougainville.
- it clarifies the allocation formula, so that a defined percentage of collected levy revenue is transferred directly into the Bougainville Consolidated Revenue Fund, to contribute to Bougainville’s internally generated revenue.
- it empowers the Secretary for Mining and Petroleum to approve an ABG Gold Refinery facility by notice in the Bougainville Gazette, to which a reduced production levy of five percent can be applied.
- it provides for offences and administrative penalties if the gold production levy is not paid.
- it empowers the Bougainville Chief Collector of Taxes to issue compliance notices and where necessary, apply administrative penalties for late or false reporting and for failure to pay the gold production levy.
The enactment of the Bougainville Mining (Gold Production Levy Amendment) Act 2025 by the Toroama-led government represents a practical and targeted reform that reflects a commitment to good governance, responsible resource management, and with potential to deliver tangible benefits from Bougainville resources.
This amendment Act further strengthens existing unauthorised mining provisions of the Bougainville Mining Act 2015, wherein unauthorised equipment and unauthorised minerals like gold are liable for confiscation and forfeiture to the government; with the administration currently developing regulatory mechanisms for effective implementation of the unauthorised mining provisions of the Act, including effective collection of the gold levy.
The President has also informed of a selective review of the Bougainville Mining Act 2015, with larger proposals for amendments currently being finalised to be taken out for wider public stakeholder consultations after the Bougainville elections.
A copy of the certified Bougainville Mining (Gold Production Levy Amendment) Act 2025 can be accessed from the following link https://abg.gov.pg/government/departments/mining
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