Mayur Resources Limited is pleased to announce the execution of definitive agreements with Pacific Unison Holdings Limited for the construction and operation of the Orokolo Bay Industrial Sands Project, located in Gulf Province, Papua New Guinea.
The execution of these agreements follows the previously announced terms sheet signed in December 20241 and represents a significant milestone in the development of the Project. After more than a decade of planning and work completed at OBP, the agreement with Pacific Unison enables OBP to become a producing asset, aligning with Papua New Guinea’s economic and social development goals. While the current focus is on the production of magnetite, this initiative enhances the nation’s internal capabilities and may, in the future, provide the opportunity to use domestically produced magnetite as the key raw material - a development that would mark a first for PNG.
Highlights
- Commitment of up to USD 11.2 million from Pacific Unison, which is expected to fully fund the construction and commissioning of the OBP magnetite only plant, with targeted commencement of production in Q4 2025 with an annual output target of 500,000 tonnes of Magnetite2.
- Mayur retains 100% equity ownership of the Project and 50% of all future profits while Pacific Unison leads the required funding, construction and development of the OBP. This arrangement enables Mayur to focus its funding and resources on the development of its flagship Central Cement and Lime Project, located in PNG, whilst retaining 50% of all future profits from the OBP, while Pacific Unison funds 100% of the required capital development funding.
- Bringing the OBP into production alongside the Central Cement and Lime Project reflects Mayur’s commitment to developing the ‘building blocks’ of a nation within Papua New Guinea – which includes iron, cement, lime, construction sand and other vital building materials.
- Successful development of Orokolo Bay will provide the opportunity to develop the broader portfolio of industrial sands projects and potentially lay the foundation for other downstream processing and production industries.
Commenting on the execution of these agreements, Paul Mulder, Managing Director of Mayur Resources, said:
“Identifying and securing the right long-term partner has taken some time, however via the execution of these definitive agreements, we feel confident in the rapid development of the Orokolo Bay Project up to a nameplate production capacity of 500,000 tonnes of Magnetite per annum2. We feel the parties are well aligned in the commercial arrangements and have a shared vision for the Project’s significant economic and community outcomes not only during production, but also in post-mining industries being established in the agriculture sector.”
“Bringing the Orokolo Bay Project into production alongside our flagship Central Cement and Lime Project will generate attractive cashflows and importantly, compliments Mayur’s commitment to developing the building blocks within PNG – domestically produced and affordable downstream iron, cement/lime are the key pillars that will build PNG, and also displace imports and set up an export industry.”
Hon. Chris Haieveta, Governor of Gulf Province said:
“As Governor of Gulf Province, I am proud to reaffirm my full support for the Orokolo Bay Project, a gulf province-building initiative I have championed since taking office. It is a transformative project that will drive economic growth, create over 130 direct and 450 indirect jobs, and create province-building capacity using local skills and resources. This marks a pivotal step for PNG having its own domestic iron ore resources for export, but to also consider development of PNG’s own small-scale iron and steel industry, being a critical ingredient to build our nation, alongside cement.”
About the Orokolo Bay Project
The OBP is situated within Mining Lease 541 (ML 541) and Exploration Licence 2305 (EL 2305) and is the primary Project within Mayur's industrial sands portfolio.
The Project is fully permitted and offshore construction of equipment is already underway. Initial production targeted to commence late calendar 2025.
Broader Mineral Sands Portfolio Synergy
The signing of these agreements and partner Pacific Unison already commencing construction works has laid the foundation for Mayur advancing its broader portfolio of higher-grade titanium and vanadium mineral sands projects in PNG. These projects, including Amazon Bay and Kiwai Island, are distinguished by their superior grades of critical minerals, which are essential for large-scale power generation and battery storage solutions. Titanomagnetite, a key resource in these projects, offers unique advantages due to its dual composition of titanium and iron, making it highly sought after in industries such as aerospace, renewable energy, and advanced manufacturing. Similarly, vanadium plays a critical role in vanadium redox flow batteries (VRFBs), which are increasingly being deployed for grid-scale energy storage due to their exceptional efficiency, scalability, and long lifespan. It also acts as a key ingredient to strengthen steel.
Next Steps
As stated, construction and procurement activities have already commenced, funded by Pacific Unison.
Simultaneously, Mayur will maintain active engagement with local communities, having already established a construction camp, and manage all regulatory requirements to ensure the Project’s execution proceeds smoothly, and aligns with broader PNG Government economic and development goals. This agreement reflects Mayur’s dedication to delivering value to its shareholders while contributing to Papua New Guinea’s economic growth and sustainable development.
