Panguna mine

Panguna mine
Copper ore concentrator undergoing construction, c. 1971
Panguna mine
Location
Autonomous Region of Bougainville
CountryPapua New Guinea
Coordinates6°18′54″S 155°29′42″E / 6.315°S 155.495°E / -6.315; 155.495
Production
Products
TypeOpen pit
History
Opened1972
Closed1989
Owner
CompanyBougainville Copper

The Panguna mine is a large copper mine located in Bougainville, Papua New Guinea, formerly operated by Bougainville Copper Ltd. Panguna represents one of the largest copper reserves in Papua New Guinea and in the world, having an estimated remaining reserve of 5.3 billion tonnes of ore copper and almost 20 million ounces of gold.[1][2][3]

The mine has been closed since 1989, although there are active proposals to reopen it.[4]

History

The discovery of vast copper ore deposits in Bougainville's Crown Prince Range led to the establishment of the copper mine in 1969 by Bougainville Copper Ltd (BCL), a subsidiary of the Australian company Conzinc Rio Tinto of Australia. The mine began production in 1972, with the support of the Papua New Guinea National Government as a 20% shareholder. In contrast to this, the Bougainvilleans received 0.5–1.25% share of the total profit. The site was at the time the world's largest open-pit copper/gold mine, generating 12% of PNG's GDP[5] and over 45% of the nation's export revenue.[6] Profits derived from the mine helped fund Papua New Guinea's independence from Australia, in 1975.[7] While operational, the mine produced 3 million tonnes of copper and 9.3 million ounces of gold.[8]

Mining at Panguna included the direct discharge of tailings into tributaries of the Jaba River.[9] The mine caused devastating environmental issues on the island, and the company was responsible for poisoning the entire length of the Jaba River, causing birth defects, as well as the extinction of the flying fox on the island. Bougainville Copper had set up a system of racial segregation on the island, with one set of facilities for white workers and one set for locals.

The combination of environmental damage and disproportionate share of profits flowing to PNG, rather than the Bougainvilleans, prompted an uprising in 1988, led by Francis Ona, a Panguna landowner and commander of the Bougainville Revolutionary Army (BRA). The outcome of the uprising was the Bougainville conflict, between the BRA, who sought secession from PNG, and the Papua New Guinea Defence Force. The ten-year conflict resulted in over 20,000 deaths, the eventual closure of the mine on 15 May 1989, and the complete withdrawal of BCL personnel by 24 March 1990. In June 2016, Rio Tinto relinquished its role by divesting its interests in the mine to national and local governments.[10] As of March 2026, the mine remains closed.[11]

Environmental impacts

The environmental impacts of the mine continue to this day. Many people have had to relocate to higher ground to avoid contaminated drinking water.[12] Heavy metals such as copper, zinc, and mercury are found in the surrounding rivers.[13] Rio Tinto has refused to fund remediation works, stating that it fully complied with the relevant laws during mining operations.[10]

In 2020, the Human Rights Law Centre lodged a complaint with the Australian government regarding the adverse environmental and human rights impacts of the mine.[12] Tetra Tech Coffey carried out an extensive study, reporting in 2024 that:

"Since 1989, the mine has never re-opened and there has been no implementation of formal closure, maintenance of mining or process infrastructure or remediation work on the mine or downstream receiving environment. Mine structures and buildings have eroded and deteriorated, the tailings continued to migrate downstream and chemicals continue to be released over time from the open pit, waste rock dump and tailings, as well as some industrial chemicals associated with some mine buildings in the Mine, River System and Port & Town domains. Across the study area, this has resulted in a range of environmental, social, human health and human rights issues."[14]

Reopening

A 2012 Order of Magnitude Study carried out by BCL estimated that 1.8 billion tonnes of copper ore (containing 5.3 million tonnes of copper—roughly equivalent to the entire annual output of Chile[15])—and 19.3 million ounces of gold remained in the mine.[8]

The Autonomous Bougainville Government (ABG) has sought to reopen the mine in order to seek an independent funding source for the territory.[13] Estimates place the cost of reopening the mine at $5 to $6 billion.[13] President Ishmael Toroama, seeing the mine as a foundational pillar of Bougainville's independent economy, declared shortly after his 2025 re-election that "my government will first of all ensure that Panguna quickly progresses to the next stage of development." BCL, now majority-owned by the ABG, was granted an exploration licence until 2029 and has requested the ABG's approval for a partnership with a major international mining company to progress activities under the exploration licence.[16]

  • Ore mill at Panguna, Boungainville mine under construction, c. 1971
  • Shovel at Panguna mine undergoing maintenance, engaged in overburden removal, c. 1971.

See also

References

  1. ^ "Panguna Copper Project". portergeo.com. 2012. Retrieved 26 July 2013.
  2. ^ Doherty, Ben (31 March 2020). "Rio Tinto accused of violating human rights in Bougainville for not cleaning up Panguna mine". The Guardian. ISSN 0261-3077. Retrieved 18 June 2020.
  3. ^ "2024 annual report of Bougainville Copper Limited" (PDF). Retrieved 28 February 2026.
  4. ^ "Media Statement: ABG clarifies Panguna EL01 and partnering arrangements". ABG.gov.
  5. ^ Mcdonald, Joshua. "Will Bougainville Reopen the Panguna Mine?". thediplomat.com. The Diplomat.
  6. ^ "Panguna | Papua New Guinea". Encyclopedia Britannica. Retrieved 10 August 2020.
  7. ^ "Bougainville's gold mine sparked a war that killed 20,000 – now it could be reopened". SBS. 22 November 2019. Retrieved 7 June 2023.
  8. ^ a b "JORC Press Release". BCL. 6 February 2013. Retrieved 24 February 2026.
  9. ^ Mudd, Gavin M.; Roche, Charles; Northey, Stephen A.; Jowitt, Simon M.; Gamato, Gama (1 November 2020). "Mining in Papua New Guinea: A complex story of trends, impacts and governance". Science of the Total Environment. 741 140375. Bibcode:2020ScTEn.74140375M. doi:10.1016/j.scitotenv.2020.140375. PMID 32599403. Retrieved 6 June 2023.
  10. ^ a b Skidmore, Zachary (6 September 2021). "Rio Tinto and the legacy of the Panguna mine". Mining Technology. Verdict Media. Retrieved 7 June 2023.
  11. ^ "History of Panguna mine". Retrieved 15 January 2020.
  12. ^ a b Swanston, Tim; Gunga, Theckla (6 June 2023). "Bougainville's destructive goldmine could also be its $90 billion key to independence". ABC News. Australian Broadcasting Corporation. Retrieved 7 June 2023.
  13. ^ a b c Wilson, Catherine (6 May 2022). "Bougainville starts process to reopen controversial Panguna mine". Al Jazeera. Retrieved 7 June 2023.
  14. ^ "Landmark investigation into former Rio Tinto Panguna mine confirms major environmental damage and life-threatening risks to communities". Human Rights Law Centre.
  15. ^ success, Your trusted source for investing. "Top 10 Copper Producers by Country | INN". investingnews.com. Retrieved 24 February 2026.
  16. ^ "Five year extension granted of exploration license (EL01)" (PDF). bcl.com.pg. 2 February 2024. Retrieved 24 February 2026.

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