In a landmark move symbolising both economic empowerment and political aspiration, the Government of Papua New Guinea has formally transferred its entire 36.45 per cent stake in Bougainville Copper Limited (BCL) to the Autonomous Bougainville Government (ABG). The shareholding—comprising 146,175,449 ordinary shares valued at approximately PGK 140 million (A$54.7 million)—was previously split between the Department of Treasury (19.06 per cent) and Eda Minerals, a subsidiary of Kumul Minerals Holdings (17.39 per cent).
The transfer now gives ABG a commanding 72.9 per cent majority in BCL, the company that once operated the Panguna copper and gold mine, one of the richest deposits in the world. The remaining 27.1 per cent is held by private and institutional investors, following Rio Tinto’s 2016 divestment of its shares in BCL.
The ceremony, held at Government House in Port Moresby, is the culmination of years of negotiations and commitments, including the Joint Supervisory Body’s 2020 resolution and NEC Decision 53/2025, and is viewed by many as a crucial step in Bougainville’s pathway to economic autonomy.
Prime Minister Hon. James Marape described the move as “a gift to the people of Bougainville on Papua New Guinea’s 50th anniversary,” and stressed that true independence would only be meaningful if underpinned by economic self-reliance. “This empowers landowners and Bougainvilleans to benefit directly from their resources,” he said.
The Panguna mine was at the centre of the conflict that led to Bougainville’s decade-long civil war (1988-1998), during which an estimated 15,000-20,000 people died. The mine, operated by BCL (then majority-owned by Rio Tinto), had generated substantial revenues for PNG, but local landowners saw little benefit and bore the environmental and social costs.
The civil unrest led to the mine’s closure in 1989 and set Bougainville on a path toward autonomy. A 2001 peace agreement established the ABG, and a non-binding independence referendum in 2019 saw 97.7 per cent of voters opt for full independence from PNG.
The share transfer gives ABG a powerful lever to pursue economic development, particularly through a potential reopening of the Panguna mine. The resource is seen as vital for funding an independent Bougainville state, with copper and gold reserves estimated at over US$60 billion. However, any future development will need to address environmental concerns, community consent, and infrastructure rehabilitation.
ABG President Ishmael Toroama hailed the transfer as “restoring dignity and rights to Bougainvilleans,” calling it a historic act of self-determination. “We are now in control of our destiny, not just symbolically, but financially,” he said.
While the PNG government remains cautious about the political timeline for independence ––emphasising a need for fiscal readiness–– this transfer may be seen as a gesture of good faith and a stepping stone towards realising Bougainville’s long-term aspirations.
The ABG is expected to consult widely on the future of BCL and Panguna. Whether through redevelopment or other ventures, Bougainville’s economic future now rests significantly in its own hands.
For investors, the development signals potential openings, but also flags the need to watch governance, legal reforms, and environmental frameworks closely. For the people of Bougainville, it marks the beginning of a new chapter in a decades-long journey for control over their resources, economy, and future.
