Lloyds Metals Cleared to Prepare for Restart of Giant Papua New Guinea Copper Mine

India’s Lloyds Metals and Energy Ltd. has received permission to begin preparatory work and feasibility activities aimed at reviving the massive Panguna copper mine on Bougainville in Papua New Guinea, a project that has remained closed for almost four decades.

The authorisation, granted on August 7, 2026, allows Lloyds Metals to undertake an approved programme of preparatory and feasibility work at the long-shuttered mining operation. The development marks an important step toward potentially restarting one of the world’s major historic copper mines.

Panguna was operated by Bougainville Copper Ltd. from 1971 until mining activities were halted in 1989 amid conflict on the island. The mine’s closure became closely associated with the Bougainville civil war and its broader political and social consequences.

Lloyds Metals has been working with Bougainville Copper and the Autonomous Bougainville Government (ABG) on a potential redevelopment framework. In April 2026, Lloyds and Bougainville Copper signed a non-binding cooperation agreement allowing the Indian company to conduct technical, commercial, financial, environmental and social due diligence on the Panguna project.

The ABG had earlier selected Lloyds Metals as its preferred mining partner under a proposed contract-mining or services partnership model. The arrangement is significant because Bougainville’s government has sought a structure that supports redevelopment while protecting its ownership interests in the mining project.

Lloyds has also established Lloyds Panguna Metals and Energy Ltd., a Papua New Guinea-based subsidiary intended to engage with Bougainville Copper and pursue cooperation, joint-venture and mining-related arrangements for Panguna.

The potential revival comes at a time when global copper markets are facing concerns over long-term supply. Copper is increasingly important for electricity grids, renewable energy, electric vehicles, industrial equipment and data-centre infrastructure, increasing interest in large undeveloped and previously operating deposits.

However, restarting Panguna will involve substantial technical, environmental, social and financial challenges. The preparatory phase will be crucial in determining the mine’s economic viability and the conditions required for any future redevelopment.

If successfully revived, Panguna could become a strategically important new source of copper and significantly expand Lloyds Metals’ international mining footprint. For Bougainville, the project could also represent a major potential source of economic activity and government revenue.