Bougainville Copper’s Panguna Project Faces Uncertainty After ABG’s Unexpected Deal

Background on the Panguna Project

Bougainville Copper Limited (BOC) has been advancing plans to redevelop the Panguna Project, a significant copper mining asset in Papua New Guinea. Since mid-2025, BOC has been engaged in a confidential process to identify an international mining partner to support the project's future development. This strategic partnering process was seen as critical to unlocking the project's potential and securing the necessary expertise and capital.

Unexpected Development with ABG and LMEL

In a surprising turn, the Autonomous Bougainville Government (ABG), which regulates mining activities in the region, signed a non-binding Memorandum of Understanding (MOU) with Lloyds Metals and Energy Limited (LMEL) on 20 November 2025. This agreement aims to establish a framework for collaboration on major development projects, including Panguna. However, BOC was not consulted prior to this MOU, despite ABG’s prior written support for BOC’s partnering efforts and its representation on BOC’s board.

LMEL had previously entered into a Non-Disclosure Agreement with BOC in April 2025 but ceased communication shortly thereafter and did not participate in the ongoing partnering discussions. The recent MOU between ABG and LMEL, therefore, introduces a new and unexpected player into the project’s development landscape, raising questions about BOC’s role and influence moving forward.

Implications for BOC and the Panguna Project

The Panguna Project’s advancement is heavily dependent on the active support of the ABG, given its regulatory authority. The MOU with LMEL casts doubt on BOC’s ability to secure a meaningful strategic partner under the current framework. In response, BOC and its advisers are consulting with existing participants in the partnering process to assess their continued interest in the project amid these new developments.

While the MOU is non-binding and does not guarantee LMEL’s involvement, the situation introduces uncertainty around the project’s timeline and partnership structure. BOC has emphasized that there is no certainty any partnership will arise from ongoing discussions, signaling a period of strategic reassessment.

Looking Ahead

This development underscores the complex interplay between government regulators and mining companies in resource-rich regions. For BOC, navigating this evolving landscape will require careful diplomacy and strategic agility to maintain its position in the Panguna Project. Investors and stakeholders will be watching closely for further updates from BOC, ABG, and LMEL as the situation unfolds.