Papua New Guinea's mining sector is set for significant advancement as Mayur Resources Limited recently secured a substantial capital injection to propel the Central Lime Project (CLP) forward.
The latest AU$100 million (PGK 250 million) equity raise by Mayur signals strong investor confidence and underscores the Marape-Rosso Government’s vision for value-added resource development within PNG, the company said.
Mining Minister Hon. Wake Goi commented on this project’s success, emphasizing the government's proactive role in facilitating its progress. With the commitment of the government, the developer and stakeholders, efforts are underway to finalize all requisite approvals and agreements, including the Community Development Agreement, he noted.
This initiative “aligns seamlessly with the government and administration's strategy” to establish Special Economic Zones (SEZs) that foster industrialization, generate employment, and ensure long-term economic sustainability, MP Goi added.
Backed by Tier 1 Australian investment bank Barrenjoey, funds from all over the globe came in to participate in the equity raise, Mayur said in a statement.
This financing will fast-track the CLP, PNG’s first greenfield project that will commence construction 18 years since the last greenfield operations in Ramu Nico and Simberi.
The project diversifies the mining space by downstream processes, adding value to new products to be manufactured -- quicklime, clinker, and cement. This reduces reliance on higher-cost imports and supports industries such as mining, construction, and public works, and adds long-term jobs, the government said.
First production is anticipated to commence 18 months post financial close, Mayur said.
The CLP, strategically located within Mayur’s Single Factory Special Economic Zone in Port Moresby’s North-Western Growth Corridor, is set to become PNG's inaugural industrial downstream manufacturing processing hub.
Minister Goi said the government is actively supporting landowner participation, ensuring that local communities are integrally involved during the construction and operational phases of the project. He noted ongoing discussions with local miners to position them as primary customers for quicklime.
Additionally, government entities such as PNG Water and Public Works are exploring opportunities to source supplies from the CLP, aiming to replace imports entirely. This approach retains manufacturing employment benefits within PNG and also paves the way for more affordable cement production in subsequent phases, MP Goi added.
Plans are being examined to establish a PNG Cement Corporation, which would further process raw materials within the SEZ to produce building materials like bricks, pavers, pipes, and culverts. Surplus production is envisioned for export to markets such as Australia, increasing revenue streams.
“As PNG approaches its 50th anniversary of independence, initiatives like the CLP signify a transformative shift towards domestic processing of raw resources. This strategy aims to strengthen local industries, reduce reliance on imports, and secure sustainable economic benefits,” Goi noted.
The government's endorsement of this substantial capital raise reflects a broader policy of resource-driven industrialization, ensuring that PNG's abundant natural resources are harnessed for longer terms and benefits, he added.
