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Land Access Compensation Agreement signed with Panguna Landowners

Over 300 traditional landowners from Panguna today signed a Land Access and Compensation Agreement (LACA) with Bougainville Copper Limited (BCL), marking a significant milestone in the project’s exploration phase.

This signing follows the ABG’s decision to grant BCL with an exploration licence, EL01, in January of this year.

His Excellency President Ishmael Toroama, who also serves as Minister for Mining and Energy Resources, acknowledged that another step in the Panguna project’s mining life cycle has now begun. He commended both the landowners and BCL for their efforts in reaching this stage.

“I commend the Panguna landowners for reaching agreement with BCL and BCL for complying with the law towards undertaking its activities within the EL01 area. Once this LACA is signed, I trust that it will be registered by the Bougainville Chief Warden within the required legal timeframe to enable BCL to progress this project,” he said.

President Toroama urged BCL to maintain cooperative relations with landowners, emphasizing the importance of these relations in ensuring the smooth progress of the Panguna project. He further encouraged all stakeholders to continue working together in unity and in compliance with the law to progress the project for the benefit of Bougainville.

Secretary for the ABG Department of Mining and Petroleum, Peter Kolotein, outlined the importance of the Agreement, noting the significance of today’s signing ceremony.

“This signing ceremony today is significant because it is a process per Bougainville mining law; which states that before entering the land the subject of an Exploration Licence to implement its work program, the licence holder must first enter into a land access and compensation agreement with the landowners. This means that the government may issue an exploration licence at the government level, but the licence holder cannot enter the land unless it gets the land access permission from the landowners”.

Secretary Kolotein also highlighted that after 35 years since closure of the former Panguna mine, there is now tangible redevelopment progress being made through an all-inclusive, consultative process under the leadership of Hon. Ismael Toroama as Minister responsible.

“It has also taken 9 to 10 months since grant of EL01 in January to get to this stage where the landowners and the company are now in agreement; culminating with signing of the LACA today. Various stakeholders have been involved in the process including BCL, Landowners, Ex-Combatants, the ABG, and others. In spite of the challenges along the way, the outcome we’re witnessing today is the result of that inclusive and consultative approach”.

“Further to this, this is a significant occasion because Bougainvillean’s, Panguna landowners in particular, were never consulted and involved in this manner when the mine was previously started up,” he said.

Secretary Kolotein explained that signing of LACA now paves the way for increased on-site project pre-feasibility and feasibility related activities; which is also expected to see an increase in local procurement of goods and services to support the project; including local employment and business and contract opportunities. This will also ultimately lead to an increase in GST and Income Tax collection and thus internal revenue for Bougainville.

The LACA Agreement outlines how both parties - the landowners and BCL, as the licence holder - will collaborate throughout the exploration process, including mechanisms for grievances and communication methods for the duration of the exploration period.

“Bougainville mining law also require the licence holder to initiate preliminary Landowner Identification Studies (LIS) and Social Mapping Studies (SMS),” Secretary Kolotein noted. “With the signing of the LACA, BCL will now have the required land access to be able to carry out some of these critical tasks in the LIS and SMS.”

The signing was held at the Panguna Catholic Church and witnessed by ABG Vice President, Hon. Patrick Nisira; ABG Member for Ioro Constituency, Hon. Theonila Matbob; ABG Member for Central Bougainville Women, Hon. Geraldine Paul; ABG Member for Central Bougainville Veterans, Hon. Junior Dake; ABG Member for Ramu Consituency, Hon. Thomas Pataaku; Chief Secretary Kearnneth Nanei; BCL Board Chairman Sir Mel Togolo; and other senior ABG officials. 

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