Bougainville: Government highly likely to negotiate on behalf of mine operator to resolve landowner dispute
In a letter dated 28 April, six paramount chiefs representing landowners around Bougainville’s Panguna mine called for mine operators to cease exploration within 24 hours. The chiefs claimed that they had not signed a Land Access and Compensation Agreement (LACA) required to grant permission for exploratory work on the site. They further claimed unspecified action would be taken to protect their land should the operator fail to comply. The operator, Lloyds Metal and Energy Limited (LMEL), have kept their machinery outside the mine awaiting resolution. LMEL operates the mine on behalf of Bougainville Copper Limited (BCL), whose majority shareholder is the Autonomous Bougainville Government (ABG).
Assessment: BCL signed a LACA with the local landowners in 2024. The government directed BCL to develop Panguna with LMEL in January 2026, and in March 2026 an agreement was signed between BCL and LMEL to allow LMEL site access to conduct due diligence, including community engagement. It is likely that the landowners see LMEL as a separate entity, where the 2024 LACA was signed with BCL. Any community engagement conducted by LMEL since March has been ineffective. The LACA and wider ABG legislation regarding mining activity provides a mechanism for landowners to raise grievances, with the ABG stating the landowners need to use this mechanism. An independent economy is a key factor ABG is seeking to show Papua New Guinea in its drive for independence in 2027. ABG is highly likely to work with LMEL to gain the landowner support, with LMEL highly likely required to speak directly with landowners and outline the economic and social benefits to the community from their multi-year operation.
Sources: Johnny Blades, “Bougainville landowners warn companies at Panguna mine to stop work,” RNZ, 30 April 2026; “LOs block off Panguna mine,” The National, 1 May 2026; Steven Busin, “Panguna landowners issue a stop-work notice to BCL and LMEL, declaring mining activities illegal,” Post-Courier, 30 April 2026.
