ASX-listed Pacific Lime and Cement has approved the final investment decision (FID) to move ahead with its flagship Central Lime Project (CLP) in Papua New Guinea, 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 the company says 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 also offering a path to enhance life-of-project cash flows attributable to equity holders,” said MD Paul Mulder.

The FID was announced at a ceremony in Central Province, attended by Papua New Guinea Prime Minister James Marape, senior government Ministers, and local landowner representatives. PLC presented cheques totalling PGK2.73-million to the Kido and Rearea landowner companies, while the Central provincial government contributed PGK1-million.

“This marks a pivotal milestone in Pacific Lime and Cements’ journey to becoming a regionally significant supplier of lime and cement,” said Mulder. “This decision reflects our confidence in the project’s robust economics, strong market demand and strategic positioning, and the high-level support we have received in both government and in the community of PNG.”

The CLP, which includes construction of two quicklime kilns, is expected to enter production within 18 months. It is projected to generate hundreds of direct jobs and thousands of indirect employment opportunities while establishing a nationally significant domestic lime supply for industrial and infrastructure use.

“Beyond financial metrics, the CLP represents a significant opportunity to deliver lasting benefits to Papua New Guinea,” Mulder said. “We are committed to working in partnership with local communities and government stakeholders to ensure that the project delivers shared value.”

While the Appian facility remains undrawn, PLC and Appian will continue to explore future collaboration opportunities. A revised investor presentation outlining development and expansion strategies accompanies the announcement.

“With FID now secured, we are focussed on executing the development phase with discipline and efficiency, and we look forward to bringing this nationally significant project into production in the coming 18 months,” said Mulder.