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Chances of Panguna Mine Re-Opening Improving

by PNG Business News - March 11, 2021

The head of one of the Bougainville landowner groups impacted by the Panguna mine says it is up to the landowners to decide whether or not to reopen the mine.

The Panguna Mine was at the heart of the ten-year Bougainville civil war, and it was forced to close in 1989 when it was PNG's largest export earner.

But, thanks to Panguna Development Company Ltd, which has brought together almost all of the landowner parties, there is renewed talk of reopening the closed mine.

An agreement has been reached to help Bougainville Copper Ltd, a former miner, in its search for an exploration license, and to offer landowners shares in the venture. There has also been widespread opposition to resuming mining at Panguna, but Therese Jaintong, chair of the Siokate landowners' party, said it is up to them to decide.

"The landowners are empowered by the Bougainville Mining Act. So whatever they say they have the power with the government - all of us talking together. We are coming close to finding some good solutions," she said.

According to Jaintong, they decided to put together all interested parties to discuss the mine's future.

"We are very genuine that what we want to see is BCL and Rio Tinto and the National Government and the ABG to sit together with us landowners, mine-affected, and we come with some plans to find a solution to this," she said. "There's no use fighting over it and then bringing new issues, new structures, new people - so we are very genuine together."

SMLOLA, which had previously backed another developer, is the only mine-affected landowner party that has declined to sign the resolution.

Jeff Clason, an organizer with Panguna Development Company Ltd, said that reopening the contentious mine was still the best way for the area to develop a viable economy. He said there was support for reopening, particularly because Bougainville's other options are limited. "In this age and what we are going through, we already voted 98 per cent for independence and if they can come up with another strategy to make Bougainville we'd listen to them," he said. "But they haven't come up with anything mate. As you the bottom line is every country needs money."



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