The government in the autonomous Papua New Guinea region of Bougainville says it will not allow exploration or mining activities at the Panguna mine site until landowners unite.
An abandoned building at Panguna mine site in Bougainville Photo: supplied
Two companies have been battling to re-open the mine, a move the government had been touting as vital to developing Bougainville's economy.
But at the end of last year President John Momis announced a moratorium on mining at Panguna and in a new statement he says it is 'absolutely clear the landowners and the people of Panguna are divided over their preferred developer.
He said after debate in the ABG House of Representatives it was very clear this decision could not be avoided and has been made in the best interests of the landowners and the people of Bougainville as the region prepares for its referendum next year.
Mr Momis says landowner leadership at Panguna remains unresolved creating factional groups with opposing views and positions on how the mine should be developed.
He says as long as the landowners remain divided the moratorium will remain in place.
Mr Momis says the ABG had invested a lot of effort trying to unite the landowners but while most Bougainvilleans are in favor of reopening the mine, the Panguna landowners are holding the region to ransom.