Lloyds Metals Allowed to Ready Restart of Giant Papua New Guinea Copper Mine

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessLloyds Metals Allowed to Ready Restart of Giant Papua New Guinea Copper MineAn Indian iron ore producer was authorized to work toward restarting a giant Papua New Guinea copper mine that’s been closed for almost 40 years and was once a flash point in a brutal civil war.Author of the article:William Clowes and Paul-Alain Hunt You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — An Indian iron ore producer was authorized to work toward restarting a giant Papua New Guinea copper mine that’s been closed for almost 40 years and was once a flash point in a brutal civil war.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountLloyds Metals & Energy Ltd. was authorized on Aug. 7 to carry out “an approved programme of preparatory works and feasibility activities” to “properly assess and plan the future redevelopment of the Panguna mine,” the Autonomous Bougainville Government said in a statement. While the mining lease containing the shuttered mine belongs to a government-owned firm called Bougainville Minerals Ltd., Lloyds is the “approved development partner” of that company, according to the statement.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againThe project is part of a global dash for copper as the trend toward electrification is expected to boost demand for the wiring metal in the years ahead. The efforts to revive the dormant asset also reflect the desire for economic development in Bougainville – impoverished islands that are currently an autonomous region within Papua New Guinea but seeking independence.Lloyds has a fast-growing iron ore business in India and recently invested in two copper mining companies in the Democratic Republic of Congo. The firm, which is little-known outside its home country, managed to beat off competition from one of the world’s largest copper producers, China’s CMOC Group Ltd., to emerge as the Bougainville government’s favored partner for the ambitious — and likely costly — venture.Panguna’s remaining reserves are estimated at 5.3 million tons of copper and 19.3 million ounces of gold, which would be worth about $160 billion at today’s prices. However, the mine was closed down in 1989 under the ownership of Rio Tinto Group due to local protests over environmental damage and revenue distribution, which degenerated into a civil conflict that killed as many as 20,000 people. A decade ago, Rio gave away its majority interest in the firm which then held the license.Lloyds intends to revalidate the resource base, according to a presentation published by the company on Aug. 10.Bougainville Minerals – via Lloyds – isn’t yet permitted to begin construction or production, according to the statement. Those phases will require separate approvals and the “redevelopment of Panguna will proceed one step at a time,” it said.The 25-year mining lease was granted to Bougainville Minerals in June after the government revoked an exploration license covering the same area from Australia-listed Bougainville Copper Ltd. The government already controlled almost 74% of Bougainville Copper, with half of that stake held by Bougainville Minerals.—With assistance from Preeti Soni.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.