In 1969, construction began on Conzinc Riotinto Australia’s huge copper and gold mine at Panguna on the island of Bougainville in what was then the Australian-administered Territory of Papua New Guinea. The mining project was unlike any Australians had previously undertaken, and its construction created complexities which Australian managers and industrial relations systems had not previously encountered. The complexity of employment relations on this project was increased by the political environment of colonial rule and the responses of Australian workers and unions. This article looks at the development of the first industrial agreement during the mine’s construction phase and places it in the context of the creation of a sustainable bargaining structure, which succeeded in mitigating industrial conflict for two decades before the outbreak of a wider armed conflict.