| Panguna mine | |
| Pushpin Map: | Papua New Guinea Bougainville Island |
| Coordinates: | -6.315°N 155.495°W |
| State/Province: | Autonomous Region of Bougainville |
| Country: | Papua New Guinea |
| Owner: | Bougainville Copper |
| Opening Year: | 1972 |
| Closing Year: | 1989 |
| Type: | Open pit |
The Panguna mine is a large copper mine located in Bougainville, Papua New Guinea. Panguna represents one of the largest copper reserves in Papua New Guinea and in the world, having an estimated reserve of one billion tonnes of ore copper and twelve million ounces of gold.[1] [2] The mine has been closed since 1989 and has ceased all production.
The discovery of vast copper ore deposits in Bougainville's Crown Prince Range led to the establishment of the copper mine in 1969 by Bougainville Copper Ltd (BCL), a subsidiary of the Australian company Conzinc Rio Tinto of Australia. The mine began production in 1972, with the support of the Papua New Guinea National Government as a 20% shareholder. In contrast to this, the Bougainvilleans received 0.5–1.25% share of the total profit. The site was at the time the world's largest open-pit copper/gold mine, generating 12% of PNG's GDP[3] and over 45% of the nation's export revenue.[4] Profits derived from the mine helped fund Papua New Guinea's independence from Australia, in 1975.[5]
Mining at Panguna included the direct discharge of tailings into tributaries of the Jaba River.[6] The mine caused devastating environmental issues on the island, and the company was responsible for poisoning the entire length of the Jaba River, causing birth defects, as well as the extinction of the flying fox on the island. Bougainville Copper had set up a system of racial segregation on the island, with one set of facilities for white workers and one set for locals. This prompted an uprising in 1988, led by Francis Ona, a Panguna landowner and commander of the Bougainville Revolutionary Army (BRA). The outcome of the uprising was the Bougainville conflict, between the BRA, who sought secession from PNG, and the Papua New Guinea Defence Force. The ten-year conflict resulted in over 20,000 deaths, the eventual closure of the mine on 15 May 1989, and the complete withdrawal of BCL personnel by 24 March 1990., it remains closed.[7]
In June 2016, Rio Tinto relinquished its role by divesting its interests in the mine to national and local governments.[8] In 2020, the Human Rights Law Centre lodged a complaint with the Australian government regarding adverse environmental and human rights impacts of the mine.
The environmental impacts of the mine continue to this day. Many people have had to relocate to higher ground to avoid contaminated drinking water.[9] Heavy metals such as copper, zinc, and mercury are found in the surrounding rivers.[10] Rio Tinto has refused to fund remediation works, stating that it fully complied with the relevant laws during mining operations.[8]
The autonomous government of Bougainville wants to reopen the mine for the purposes of seeking an independent funding source.[10] Estimates place the cost of reopening the mine at $5 to $6 billion.[10]