Bougainville Copper (ASX:BOC) has reached an agreement with the Bougainville Autonomous Government (ABG) to resolve long-standing disputes over its exploration rights in 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 is of significant historical and economic importance. However it has remained dormant since 1989 due to civil conflict.
Under the new terms, the ABG will extend the Bougainville Copper exploration license (EL01) for a further five years, a key development which will allow the company to evaluate potential avenues for resource development. The project is the company’s only significant asset.
CEO Mark Hitchcock underlined the importance of the agreement, noting: “This extension is a crucial step towards re-establishing Panguna as a key economic asset for Bougainville.” Hitchcock also highlighted a commitment to cooperation, with Bougainville Copper and ABG aiming to ensure any future activity is aligned with community interests and sustainable development goals.
Bougainville Copper’s progress comes amid a wave of interest in the resources sector in Bougainville, which voted for independence from Papua New Guinea in a 2019 referendum.