The share price of Bougainville Copper (BCL) more than doubled on Friday as the ASX-listed company announced a five-year extension of its exploration licence for the Panguna project in central Bougainville, which is part of Papua New Guinea.
At a ceremony on Friday, to mark the granting of the extension, Bougainville President Ishmael Toroama reportedly described Panguna as a high-impact project and that the issuance of the licence would pave the way for the redevelopment.
This will start with advanced stage prefeasibility and feasibility stage exploration activities over the coming years.
Panguna is one of the world’s biggest known copper deposits.
Chairperson Melchior Togolo said the company was excited at the prospect of leading the redevelopment work.
“This is a result of constructive collaboration, underpinned by mutual respect, with a common goal to make Bougainville economically strong, create opportunities for business development and for employment of our people,” he said.
“The ABG, Landowners and Bougainville Copper have been working on resolving differences since the refusal of EL01 extension in January 2018. Today marks the successful culmination of these joint efforts.
"Panguna promises to be a transformative investment for Bougainville that will support greater levels of economic self-reliance for the region,” Melchior added.
The EL01 extension clears the way for BCL to increase its activities in the Panguna project area in accordance with the Bougainville Mining Act 2015.
The company’s stock closed 128% higher at A$0.80 a share on the ASX.