04/03/2026
Last week, SERACS Ltd organized an exposure trip for Panguna landowner and leaders across the project footprint to visit OTML’s operations in Western Province. The trip was made possible through our role as an Independent Observer in the CMCA Review process, along with our successful completion of the Landowner Identification Study (LIS) and strong relationships with landowners and BCL. The visit was aimed to foster learning and dialogue.
For context, following the 2001 BPA, the ABG wanted to transfer powers over mining, oil, and gas from PNG. This process was formalized through a 15-step framework via the Alotau MoU in 2008, leading to the Bougainville Mining Act 2015, which established ABG’s legal authority. In 2018, ABG refused to extend EL01 license for BCL. However, after discussion on judicial review in late 2023, ABG granted a five-year extension of EL01 on 31st January 2024 to BCL, marking a significant development for Panguna Project.
OTML was selected for the trip due to its similarities in ore body and project footprint with Panguna, and because both operate under their respective mining laws: OK Tedi Act 2013 & Environment Management Act 2019 for OTML, and the Bougainville Mining Act 2015 for Bougainville. Environmental regulation in Bougainville remains under CEPA, as powers have yet to be fully decentralized.
The visit was intentionally strategic, focusing on understanding OTML’s evolving operations, ranging from extraction techniques to environmental mitigation, processing technologies, and community engagement. A key insight was how OTML has continuously re-engineered itself, transforming its economic contributions and setting a valuable reference for Panguna’s potential redevelopment, especially in terms of modern processing and structured state participation through Kumul Minerals Holdings Ltd.
Engagement with OTML’s Community Relations team provided insights into the review process of the CMCA. Discussions highlighted how structured agreements can evolve and how landowners’ business development pathways have expanded beyond basic services to diversified contracts across business units. A particularly valuable part of the visit was engaging directly with LANCOs operating under OTML contracts. These interactions offered practical insights into governance, risk management, performance standards, and how local enterprises can grow alongside large mining operations.
Such exposure trips are vital for informed decision-making, rooted in the principles of FPIC outlined in the BMA 2015. They promote leadership based on careful observation, evidence, and dialogue, equipping landowners with the technical, commercial, and governance insights necessary for a responsible, sustainable future for Panguna.
We thank OTML management for facilitating this trip, BCL for its support to landowners, and the landowners for their curiosity and engagement.
The journey of learning continues. Tampara!
