Bougainville Vows Action After Arson Destroys Equipment at Panguna Mine

The Autonomous Bougainville Government has vowed to take action after alleged arson destroyed equipment at the Panguna mine in Papua New Guinea. The mine, which was closed down in 1989 due to local protests over environmental damage and revenue distribution, is seeking to restart operations with India's Lloyds Metals & Energy Ltd. as its newly appointed contractor.

Lloyds was given approval by Bougainville to begin feasibility work on redeveloping Panguna despite skipping the normal bidding process. The company beat out China's CMOC Group Ltd., one of the world's largest copper producers, to become Bougainville's preferred partner for the costly and high-stakes venture.

The project is part of a global dash for copper as demand for the wiring metal is expected to boost with the trend toward electrification. Panguna's remaining reserves are estimated at 5.3 million tons of copper and 19.3 million ounces of gold, which would be worth about $160 billion at current prices.