Bougainville Copper (ASX:BOC) has reached an agreement with the Autonomous Bougainville Government (ABG) to resolve long-standing disputes over its exploration rights at the Panguna copper-gold project. This project, located in Bougainville, Papua New Guinea, was once one of the largest copper mines in the world, and holds significant historical and economic importance. However, it has remained inactive since 1989 due to civil conflict.
Under the new terms, the ABG will extend Bougainville Copper’s exploration licence (EL01) for another five years, a critical development that will allow the company to evaluate potential pathways for resource development. The project is the company's only significant asset.
CEO Mark Hitchcock emphasised the importance of the agreement, noting, “This extension is a crucial step toward re-establishing Panguna as a key economic asset for Bougainville.” Hitchcock also highlighted the commitment to cooperation, with both Bougainville Copper and the ABG aiming to ensure that any future activities align with community interests and sustainable development goals.
Bougainville Copper’s progress comes amidst a wave of resource sector interest in Bougainville, which voted for independence from Papua New Guinea in a 2019 referendum.
