Lloyds Metals cleared to advance toward restart of long-shuttered Papua New Guinea copper mine

An Indian iron ore producer has been authorized to begin preparatory work toward reopening a major copper mine in Papua New Guinea that has remained idle for nearly four decades-a site that once became a flashpoint in a devastating civil conflict.

On August 7, Lloyds Metals & Energy Ltd. received approval to carry out "an approved programme of preparatory works and feasibility activities" aimed at "properly assess[ing] and plan[ning] the future redevelopment of the Panguna mine," according to a statement from the Autonomous Bougainville Government.

Although the mining lease for the closed operation is held by Bougainville Minerals Ltd.-a government-owned entity-Lloyds has been designated as the "approved development partner" of that company, the statement added.

Panguna's remaining reserves are estimated at 5.3 million tons of copper and 19.3 million ounces of gold, with a combined value of approximately $160 billion at current market prices. However, the mine was shuttered in 1989 under the ownership of Rio Tinto Group, following local opposition over environmental harm and disputes over revenue sharing-tensions that escalated into a civil war claiming as many as 20,000 lives. A decade ago, Rio divested its majority stake in the company that then held the license.

In a company presentation released on August 10, Lloyds indicated its intention to revalidate the resource base as part of its reopening strategy.