The Papua New Guinea (PNG) National Court has dismissed a class action lawsuit filed against Rio Tinto and its former subsidiary Bougainville Copper.The case was dismissed on September 26, after hearings were held in June 2025.
For Rio, this will affirm its ongoing rehabilitation work on the Panguna mine site, in line with the Panguna Mine Legacy Impact Assessment report that was released in December last year.
For Bougainville Copper, having the case removed will give it clear air to move forward with its efforts to restart operations at the mine. Shares in the company rose 39 per cent between the closing prices on September 25 and September 30.
The claim was first filed in July 2024, with a plaintiff leading a set of landowners in seeking redress from the environmental and cultural impacts of the Panguna mine, which ceased operations in 1989.
Both Rio Tinto and Bougainville Copper vowed to defend the claim separately at that time, with Rio Tinto lodging its defence documents in September 2024. The company noted that its focus remained on constructive engagement with local stakeholders through the Impact Assessment.
Justice Thomas Anis considered three issues in his ruling: whether the plaintiff had demonstrated sufficient standing to sue on behalf of others in the class action; whether the action’s lawyers, a Sydney-based firm, were able to lead the case in Papua New Guinea, and whether the action violated Papua New Guinea’s champerty rules. These forbid third party funding of class actions in return for a portion of any settlement.
Justice Anis found in favour of Rio Tinto and Bougainville Copper on all three issues, and dismissed the case “in its entirety”. He ordered that costs be paid to the two defendants on an indemnity basis.
It is understood the plaintiff has an opportunity to appeal the decision, but must do so within 40 days.
A spokesperson for Rio Tinto declined to comment on the proceedings.
Bougainville Copper advised the ASX of the court’s orders, and noted only that it. was “considering the decision in detail”.
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