Bougainville Copper Limited has selected China’s CMOC Group as its preferred partner to redevelop the Panguna Mine, but the Autonomous Bougainville Government’s president favors a rival Indian firm, casting uncertainty over the project’s future.
- Bougainville Copper board endorses CMOC Group as preferred mining partner
- Autonomous Bougainville Government president opposes CMOC, favors Lloyd Metals & Energy
- LMEL withdrew from initial selection but signed separate MoU with ABG
- Ongoing negotiations ahead of critical ABG cabinet meeting
- Unclear details on LMEL’s proposed role in Panguna redevelopment
Board’s Strategic Partner Selection
In the first quarter of 2025, Bougainville Copper Limited (ASX – BOC) initiated a confidential process to identify a capable international mining partner to assist in redeveloping the long-dormant Panguna Mine. After a thorough selection process managed by financial advisers Grant Samuel, the board settled on CMOC Group Limited, a Chinese mining giant with a proven track record in large-scale copper projects in developing economies.
Political Divergence Emerges
However, the board’s recommendation has hit a significant political snag. The Autonomous Bougainville Government (ABG), which holds a majority 72.9% stake in Bougainville Copper, has expressed a clear preference for Lloyd Metals & Energy Ltd. (LMEL), an Indian company that initially participated in the selection process but later withdrew and independently signed a non-binding Memorandum of Understanding with the ABG in late 2025.
This divergence was made explicit on 28 January 2026, when the ABG President, as majority shareholder, communicated opposition to the board’s choice of CMOC and instead endorsed LMEL. The reasons behind this preference remain undisclosed, and no formal details about LMEL’s proposed involvement or investment have been shared publicly.
Negotiations and Uncertainty Ahead
Despite the political impasse, senior representatives from Bougainville Copper and CMOC continue to engage with the ABG President, aiming to secure support before an upcoming ABG cabinet meeting scheduled in the coming weeks. The outcome of this meeting will be pivotal in determining the direction of the Panguna Mine redevelopment, a project with significant economic and social implications for Bougainville and Papua New Guinea.
The situation highlights the complex interplay between corporate governance, political influence, and international partnerships in resource development projects within emerging jurisdictions. Investors and stakeholders will be watching closely to see whether the board’s strategic vision aligns with the political realities on the ground.
Looking Forward
As Bougainville Copper navigates this delicate phase, clarity on the final partnership structure and investment commitments will be crucial. The company’s ability to reconcile differing stakeholder interests will likely shape the pace and viability of the Panguna Mine’s long-awaited revival.
Bottom Line?
The Panguna Mine’s future hinges on resolving a high-stakes partnership dispute that could redefine Bougainville Copper’s path forward.
Questions in the middle?
- What are the specific terms and investment plans proposed by Lloyd Metals & Energy?
- How will the ABG cabinet meeting influence the final decision on the mining partner?
- What impact could this partnership uncertainty have on project timelines and financing?