PAPUA New Guinea’s government has exercised equity participation rights to take a 13 per cent stake in Pacific Lime and Cement’s Central Lime Project for $US16.3 million.
Pacific Lime and Cement said the shareholding agreements and equity acquisition documents tied to the government’s participation had now been executed, cementing the state’s first capital commitment under a project development agreement signed in March.
The stake is being acquired in Mayur Industrials PNG Limited, the project special purpose vehicle that owns the Central Lime Project, at a discounted valuation based on the project’s base-case net present value, the company said.
KMHL also has the option to buy an additional 5 per cent for about $US6.8 million within 180 days after operations begin, with first quicklime output forecast for the first quarter of 2027.
The agreement gives KMHL the right to acquire up to 30 per cent in the company’s separate Central Cement Project vehicle, with the option exercisable two months before a final investment decision expected in the fourth quarter of 2026.
That valuation will be determined by an independent expert, with the discount capped at 15 per cent.
Pacific Lime said the government’s investment marked a key milestone for the projects, which it says are designed to create Papua New Guinea’s first integrated lime and cement manufacturing platform.
“The PNG Government’s decision to invest directly in the Central Lime Project is a landmark milestone that further strengthens the sovereign and institutional foundations of what we are building,” Managing Director Paul Mulder said.
He said the investment reflected more than a decade of collaboration with the government and landowners and would help ensure the project’s benefits were shared locally.
KMHL Managing Director Sarimu Kanu said the project would reduce Papua New Guinea’s reliance on imported quicklime and support domestic industry.
“This will ensure locally sourced quicklime will support our copper, gold and nickel processing facilities whilst delivering stronger, more durable roads and critical infrastructure across the country,” Kanu said.
The company also pointed to Papua New Guinea’s recent trade defence legislation as a framework to support domestic industry against unfairly traded imports, saying it was engaging with authorities on processes aligned with international frameworks including the IMF and World Trade Organisation.
Special Adviser to the Prime Minister Isaac Lupari said the new trade defence measures were an important step in supporting domestic manufacturing.
“Projects such as the Central Lime Project are critical to reducing import dependency, strengthening local supply chains, and ensuring that national infrastructure development is underpinned by reliable, high-quality local inputs,” Lupari said.
Pacific Lime said it is preparing for first quicklime production while continuing work toward a cement final investment decision targeted for 2026, after which construction on the lime project would ramp down and cement activities would accelerate in 2027.
