In a report from the Epoch Times on May 3, 2024, a former Wall Street investment banker lobbied the US Congress for help with the future of a Pacific island nation and its massive Panguna mine, stating that “China has set its sights on Bougainville’s vulnerable position and valuable Panguna mine.”
A Washington think tank expert familiar with Pacific island issues labeled the Chinese Communist Party as the “demon” of the Pacific region.
Bougainville is an autonomous region of Papua New Guinea seeking independence and believed to hold the Panguna mine with rich reserves of gold, silver, and copper worth $100 billion, significant for its independent future and potential contribution to global economic development.
The Panguna mine in Bougainville could potentially become the next battleground between China and the US in the South Pacific.
Papua New Guinea is the third-largest island nation in the world with an area of approximately 463,000 square kilometers. It is located in the South Pacific, bordered by Australia to the south, Indonesia to the west, and Solomon Islands to the east. With a population of around 9.95 million (estimated population: around 17 million), Papua New Guinea is the most populous Pacific island nation, with its capital in Port Moresby.
Bougainville, an island near the Solomon Islands belonging to Papua New Guinea, has been seeking independence since the mid-1970s and became an autonomous region within Papua New Guinea. It held a referendum in 2019, with over 98% of votes in support of independence.
President Ishmael Toroama, elected in 2020, set 2027 as the deadline for complete independence from Papua New Guinea, pending approval from the PNG parliament. Negotiations between the two parties are ongoing, but reports suggest a rift in the talks.
Bougainville was once one of the most prosperous regions in Papua New Guinea due to the Panguna mine, the world’s largest open-pit copper-gold mine until grievances over income distribution and environmental damage led to a violent crisis in 1988, resulting in up to 20,000 deaths and the closure of the mine.
In 2001, an agreement was reached between the Papua New Guinea government and the Bougainville Revolutionary Army, granting Bougainville some autonomy, including control over mining rights, laying the groundwork for the 2019 referendum. President Toroama, a former BRA leader, played a vital role in the peace negotiations.
Bougainville, with a population of around 300,000, has improved social stability but lacks basic infrastructure like paved roads, even between the main cities of Buka and the former capital, Arawa.
The mountains surrounding Arawa are believed to harbor vast wealth, with the Panguna mine lying about 22 kilometers southwest of the city. Every day, dozens of locals trek up the mountains, sifting through mineral-rich soil for gold in unauthorized mining sites.
John D. Kuhns, aged 74, a former Wall Street banker turned entrepreneur, has been in Bougainville since 2015, seeking opportunities to reopen the Panguna mine, not just for funding Bougainville’s independence but also for potential millions in profits. He believes that with advancements in clean technology driving global demand for copper, reviving the Panguna mine with multi-billion-dollar equipment is feasible.
Kuhns highlighted that restarting the Panguna mine on a large scale after 35 years of dormancy would require an investment of $3-4 billion.
In November 2023, Kuhns accompanied President Toroama to Capitol Hill in Washington, DC, where discussions with US congressmen focused on reopening the Panguna mine to fund Bougainville’s freedom and independence, aligning as a strong ally for the US.
Amid China’s expanding economic and military presence in the Indo-Pacific region, it is extending its influence to the island nations of the South Pacific. In 2022, China signed a security agreement with Solomon Islands, allowing its warships safe port access, drawing significant concern from the US, Australia, and New Zealand. This agreement places the port just 2,000 kilometers from the Australian coast.
Solomon Islands’ former Prime Minister Manasseh Sogavare, who signed this deal with China, severed diplomatic ties with Taiwan.
Jeremiah Manele, recently elected as Solomon Islands’ new Prime Minister on May 2, previously served as Sogavare’s foreign minister and may continue his pro-Beijing policies. Sogavare warned that if his party is ousted by “Western powers,” Solomon Islands might not receive China’s “generosity” anymore.
Papua New Guinea is much closer to Australia’s northern coast, spanning about 160 kilometers.
Chinese Foreign Minister Wang Yi’s visit to Papua New Guinea in April presented a free trade agreement and emphasized China as its most reliable partner. Earlier this year, Palau and Marshall Islands raised concerns about Chinese pressure and urged the US for billions in aid.
Gordon Peake, a Bougainville expert at the US Institute of Peace, described China as the “demon” of the Pacific region.
Kuhns, concerned about the potential reality of pro-China candidates winning in Bougainville’s elections, supports Bougainville’s independence efforts while aiming to mitigate the risk of Chinese influence.
He stated, “I’m not here to be a saint, but I think I do a good job.”
Kuhns revealed he provided funding for Toroama’s presidential campaign in 2020, covering security costs. He also financed Toroama’s US trip in November and facilitated meetings with congressmen in Papua New Guinea earlier.
Toroama’s goals included showcasing himself as a committed partner to US officials and discussing the deployment of US Coast Guard vessels in Bougainville with Congress members. He also hoped to find a mediator to revive independence negotiations with Papua New Guinea.
Days after these meetings, Kuhns, in talks with then National Security Council coordinator for Indo-Pacific affairs, now Deputy Secretary of State Kurt Campbell, discussed the situation in Bougainville. The State Department spokesperson confirmed this meeting.
Bougainville’s political instability provides an opportunity for Chinese influence. Toroama noted conversations with Chinese companies on the Panguna issue in Guangzhou in March.
In next year’s Bougainville elections, Toroama may face a challenge from his 2020 rival Sam Kauona, who promoted his “China Plan,” prioritizing Chinese projects if elected. Kauona praised Solomon Islands’ security agreement with China and expressed openness to a similar deal.
Kuhns expressed worry about the potential of a China-leaning president in Bougainville’s future elections due to their susceptibility to Chinese influence.