Cost Benefit Analysis of Re-Developing the Panguna Copper-Gold Deposit in the Autonomous Region of Bougainville

Abstract

The Cost-Benefit Analysis (CBA) was undertaken primarily to investigate the potentials of raising revenue from the mining sector, with a specific focus on redeveloping the Panguna mineral resource. The policy domains were identified by the CBA study to increase internal income from mining activities in Bougainville and bridge the fiscal gap. The social and political factors were in accord with the socio-economic and environmental complaints connected to the civil conflict in 1989. Nonetheless, these past problems have become stepping stones to explore new frontiers of mineral policies that are socially inclusive. Bougainville is the only autonomous region in the world whose legislature recognizes the landowners as owners of minerals below the ground and seas. The Bougainville Mining Act 2015 was enacted and intensified capacity building to create systems to redistribute benefits in a fairly manner. The comparative analysis shows the remaining Panguna resource may outperform the former Panguna mine's net benefits. The CBA study also identified enabling factors that may ascertain mineral-driven economic and social developments. The law regarding local ownership of minerals could lead to partnerships that are workable and low-risk, thus, reduce costs and maximize the benefits of mining.