The latest authoritative government policy on Bougainville's richest commodity is shaping the region's next step towards independence from Papua New Guinea.
The announcement from the Autonomous Bougainville Government, which has long sought its own sovereignty for the best part of five decades, has unequivocally turned down the latest proposed partnership for its copper mine from a rival Chinese-state owned firm.
Bougainville President Ishmael Toroama released a statement saying the island's administration is not prepared to dilute the value of its Panguna mine following investment offers from China Molybdenum Company.
The deal would have impacted the Bougainville government's 72.9 per cent share and resulting dividends over equity participation in Bougainville Copper Limited.
The overwhelming majority share comes from recent transfers from the PNG government after its former owner, Rio Tinto, let go of its shares a decade ago, with more than a third going to each of the two governments and the remainder handed over to the Indigenous landowners of Bougainville.
The move from Rio Tinto came after Bougainvillean called for the Australian arm of the mining multinational to mitigate the environmental and social damage generated by mining activity in the 20th century prior to the shutdown.
The Australian-based Human Rights Law centre instigated an investigation and at the end of 2024, released a report on the world's former largest gold and copper mine.
"During its operation between 1972 and 1989, close to one billion tonnes of mining waste, was directly released into the Jaba-Kawerong River," the report read.
"The environmental devastation that ensued, and the inequities in the distribution (of) the mine's profits caused an uprising by local people which forced the mine to stop operating and triggered a brutal, decade-long civil war."
The violent war over inequitable control of the PNG's government's economic benefits from the mine further accelerated Bougainville's cultural desire towards secession.
More than 98 per cent of Bougainville's electorate voted in favour of nationwide independence from PNG during a 2019 non-binding referendum.
The autonomous region's leaders believe the mine is the fastest way to develop an economy on which Bougainville can build its sovereignty from PNG.
Bougainville Copper Limited is seeking to redevelop the Panguna mine with its five-year exploration licence, which was granted in 2024.
Representatives of Bougainville Copper Limited told the Autonomous Bougainville Government last year the mothballed excavation still has more than 20 years of production left, and could generate revenue in the vicinity of $US28 billion ($A40 billion) for the developing economy.
President Toroama said the Autonomous Bougainville Government had since directed Bougainville Copper Limited to cease discussions with China Molybdenum Company to solely pursue engagement with Lloyds Metals and Energy Limited as its preferred partner from Indian state of Maharashtra.
Bougainville Copper Limited was exploring the possibility of bringing in a significant international partner to support investment, technical expertise, and operational capacity for Panguna's next phase of production.
According to the President's statement, the Autonomous Bougainville Government is eyeing a deal with Lloyds which would constitute a "contract mining or services partnership model" and shouldn't affect the standing of Bougainville Copper Limited's electrical licensing requirements, nor the government's holding of its exclusive shares.
"This direction reflects the Autonomous Bougainville Government's policy position that Bougainville is to retain ownership and control while engaging experienced operators through clearly defined contractual arrangements," President Toroama said.
"The Autonomous Bougainville Government remains committed to progressing the Panguna project in a lawful, transparent, and orderly manner that serves the long-term interests of the people of Bougainville."
