Central lime project, Papua New Guinea – update
Name of the Project
Central lime project (CLP).
Location
About 25 km north of the capital, Port Moresby, in Papua New Guinea (PNG).
Project Owner/s
Supplier of cement, quicklime and processed building products Pacific Lime and Cement (PLC), previously Mayur Resources.
Project Description
The CLP will be Asia Pacific’s first carbon-neutral quicklime, clinker and cement project for supply to PNG, Australia and the South Pacific at much lower costs than Asian exporters.
The project is aiming for a base case nameplate production capacity of 400 000 t and will be developed in two phases.
Phase 1 will involve the construction of the quicklime plant, with a capacity of 600 000 t/y of quicklime and 700 000 t/y of limestone.
Phase 2 will involve the development of clinker and cement facilities producing 820 000 t/y and 900 000 t/y respectively.
Opportunities exist for future expansion.
Potential Job Creation
The project is expected to provide employment opportunities for at least 1 000 people.
Net Present Value/Internal Rate of Return
Not stated.
Capital Expenditure
PLC executed definitive debt financing agreements with Appian Capital Advisory for about $115-million in April 2024. This financing, combined with Vision Blue Resources’ (VBR’s) proposed equity investment in the project of $40-million, announced in November 2023, will result in the project’s being fully funded.
Planned Start/End Date
Construction of the CLP started in mid-2023.
Latest Developments
PLC has approved the final investment decision to move ahead with the project, charting a debt-free development path amid a strategic redesign that slashes upfront capital costs.
The project will now be fully funded from PLC’s existing equity reserves, following a A$971-million equity raise earlier this year. The decision to proceed without tapping the previously announced debt facility from Appian Capital Advisory marks a shift in capital strategy, one that, according to the company, will improve forecast free cash flow and reduce risk.
“The equity-only funding model provides the company with funding certainty during the construction of the CLP while . . . offering a path to enhance life-of-project cash flows attributable to equity holders,” MD Paul Mulder has said.
Key Contracts, Suppliers and Consultants
None stated.
Contact Details for Project Information
Pacific Lime and Cement, tel +61 7 3157 4400 or email contact@company.com.
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