The Autonomous Bougainville Government (ABG) has approved the grant of Large-Scale Mining Lease No. 01 (LSML-01) to Bougainville Minerals Limited, marking the first major mining tenure issued under the newly enacted Bougainville Mining (Amendment) Act 2026.
The approval was granted by the Bougainville Executive Council and provides Bougainville Minerals Limited with a 25-year lease over the designated mining area.
According to the ABG, LSML-01 will ultimately be held by Bougainville Minerals Limited together with approved landowners and landowner organisations in accordance with the provisions of the amended legislation.
The government said the decision represents a significant milestone in implementing Bougainville's new legislative framework for the redevelopment of previously operating large-scale mines.
Under the law, LSML-01 becomes the primary mining tenure over the lease area, with any existing tenements and associated rights within the lease area suspended and subordinated to the Large-Scale Mining Lease for the duration of the licence.
The licence was formally presented by the Bougainville Executive Council to Bougainville Minerals Limited on June 11.
The grant follows the passage of the Bougainville Mining (Amendment) Act 2026 by the Bougainville House of Representatives earlier this week.
The legislation establishes a special framework for the orderly and accelerated redevelopment of previously operating large-scale mines where such developments are determined by the Bougainville Executive Council to be in the public interest.
The Act also provides for the granting of Large-Scale Mining Leases to eligible holders under specific conditions set out in the law.
Bougainville President and Minister for Mining and Petroleum Ishmael Toroama described the legislation as the culmination of four years of consultation involving landowners, community leaders and other stakeholders through processes including the Panguna Mine Dialogue.
"This legislation has not emerged overnight. It is the result of years of consultation, discussion and reflection involving landowners, communities, leaders and stakeholders across Bougainville," Toroama said.
He said the reforms reflect aspirations for greater participation in resource development, stronger Bougainville ownership and improved economic opportunities.
According to the ABG, the amended law retains key safeguards contained in the Bougainville Mining Act 2015, including requirements relating to landowner participation, environmental approvals, compensation arrangements and consultation processes.
The legislation also introduces provisions aimed at strengthening landowner participation through equity ownership while ensuring responsibility for historical liabilities remains with those responsible for those obligations.
The grant of LSML-01 is expected to play a key role in the government's plans to advance large-scale mining development as Bougainville seeks to strengthen its economic base and generate future revenue from its natural resources sector.
