Papua New Guinea's Minister for Mining, Hon. Wake Goi, officially opened the Central Cement & Limestone Project (CCLP) Consultative Forum on November 27th at the Hilton Hotel, Port Moresby.
The forum, in compliance with Section 3 of the Mining Act 1992, focused on advancing the project's Community Development Agreement (CDA).
Attendees of the forum included, representatives from the government, the project developer Mayur Resources Limited, stakeholders and local landowner groups to consolidate perspectives into a unified CDA. Discussions emphasized benefit-sharing and compliance with laws and policies.
Located in Kido, Central Province, CCLP is a significant economic opportunity with 382 million tonnes of high-grade mineral resources, ensuring long-term operations.
Minister Goi highlighted its role in boosting foreign exchange and creating local manufacturing opportunities, stating: “The government’s take from this project will assist in boosting revenues and aligns with our focus on creating value within PNG.”
The project, under Mining Lease 526, will produce quicklime, clinker, and cement in phases, addressing national infrastructure needs while reducing reliance on imports. Construction is set to begin in 2025.
Economic and Strategic Impact
Mayur Resources Managing Director Paul Mulder underscored the project's potential to transform PNG’s economic landscape.
PNG currently imports 250,000 tonnes of quicklime annually, costing approximately USD $35 million. The project will replace these imports with locally-produced quicklime, providing an annual export potential of USD $26 million and supporting regional demand.
“Nation-building starts with two key materials: iron and cement,” Mulder said, outlining plans to establish PNG’s first locally-produced lime and cement industry under a “rock-to-road” policy.
The phased development will initially produce 400,000 tonnes of quicklime annually, scaling up to include 900,000 tonnes of cement. This will position PNG as a competitive exporter to Australia and Pacific nations, leveraging its geographic advantage and cost-effective logistics.
Mulder also highlighted the project's contributions to employment, supporting industries, and environmentally-responsible practices. Infrastructure, including quarries, kilns, roads, and a wharf, represents a USD $110 million investment designed for scalable expansion.
Landowner Collaboration and Development Progress
Landowner collaboration has been a cornerstone of the project, Mayur Resources noted. Compensation agreements and land access were secured in 2020, following consultations and pre-forum workshops.
Minister Goi praised the progress, urging stakeholders to approach negotiations collaboratively to ensure the project’s success.
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“Landowners have consented to development, and key infrastructure, such as the jetty for the wharf, is under construction,” he said.
The project has secured significant international financing, including:
- US$50 million equity investment from Appian Capital Advisory LLP (ACAM) and Associates, broken into US$40 million in project equity and US$10 million convertible for corporate purposes.
- US$11 million in Senior Secured Financing.
- US$70 million in base facility to bring stage 1 into production
- US$22.2 million expansion facility to expand the lime project to 4 kilns
- US$22.2 million cost over-run facility provides equity investors with funding certainty through the construction phase.
Mayur Resources Limited Managing Director Paul Mulder said additional funding ensures cost overrun coverage and further expansion of lime production.
Mulder emphasized the broader implications of the project, noting its role in addressing Australia’s demand for cement and lime, which currently depends heavily on imports.
With limited investments in Australian cement production, PNG’s proximity offers a logistical edge, particularly for exports to Townsville, just two days away by sea.
Stakeholder Support
Minister Goi commended the collaboration among provincial leaders, landowners, and Mayur Resources. He reaffirmed the Marape-Rosso government’s commitment to the project as a national priority.
“The government is committed to seeing this project commence construction in 2024 and move into full-scale development and operation during our term,” he said.
MRA Managing Director Jerry Garry emphasized the importance of landowner inclusion, calling them the “most valuable stakeholders” in any extractive industry.
He praised the forum’s role in accommodating landowner aspirations and urged collective efforts to ensure the project's success. “As we modernize our country, cement is key to building long-lasting homes and infrastructure,” Garry stated.
The Central Cement & Limestone Project marks a pivotal step for PNG’s economic development, transitioning from import dependency to local production and export capability.
“Currently, PNG imports 250,000 tonnes of quicklime annually for gold, nickel, and copper processing, at significant cost. This project will replace imports, provide locally-produced quicklime, and open export opportunities,” said Mulder.
This potential adds around US$26 million per year in export revenue, improving the balance of trade giving the downstream processing.
Government and stakeholder backing ensures the project is set to contribute significantly to National growth and regional trade.
