When Papua New Guinea (PNG) Prime Minister James Marape stood alongside Pacific Lime and Cement managing director Paul Mulder in Kido Village in August, he could barely hide his enthusiasm.
“This project is a game-changer for Papua New Guinea,” Marape declared as he formally announced the Central Lime project’s final investment decision.
The excitement across the audience that day, as well as the PNG Government and a long list of stakeholders, was well-founded. After more than a decade of development, the Central Lime project ticks several boxes in line with PNG’s national goals.
Located in Central Province, the project marks the country’s first new greenfield mine to commence construction in 18 years, breaking a drought that has seen its mining sector dominated by legacy operations. Perhaps more significantly, it will establish PNG’s inaugural downstream manufacturing facility for quicklime and cement production, positioning the Pacific nation as a potential regional supplier rather than an exporter of raw materials.
The transformation from concept to reality has been little short of remarkable.
The project has evolved into Pacific Lime and Cement’s (formerly Mayur Resources) cornerstone project, a venture that PNG’s former Mining Minister Ano Pala described as a “transformative development” with the capacity to employ over 1000 people, while replacing costly imported building materials with locally produced alternatives.
Project overview
The Central Lime Project centres on a substantial 382-million-tonne limestone resource, strategically positioned within a dedicated Special Economic Zone (SEZ) that offers comprehensive infrastructure and fiscal incentives. Such a massive resource base provides decades of mining potential, underpinning the project’s long-term viability and expansion ambitions.
The operation will initially feature two high-efficiency quicklime kilns, each capable of processing 600 tonnes per day, giving the project a combined annual production capacity of 400,000 tonnes of quicklime and hydrated lime. Beyond the core lime production, the facility will also generate 600,000 tonnes of limestone aggregate per year, creating multiple revenue streams from the single resource base.
The project’s industrial footprint extends beyond quarrying operations.
Pacific Lime and Cement has developed an integrated supply chain that includes quicklime kilns, an export wharf, on-site power generation, water desalination facilities and comprehensive processing infrastructure, all contained within the SEZ. This kind of self-contained approach helps to reduce operational dependencies while maximising the value-add potential of the limestone resource.
Mulder said the project has a range of knock-on benefits for PNG’s national economic development, including for its energy transition ambitions.
“Lime demand continues to rapidly expand as a key input in the global energy transition,” he said.
The focus on producing low-carbon quicklime and hydrated lime also positions the project to serve growing markets for sustainable building materials.
And this is just the beginning. The operation’s strategic design allows for significant expansion potential, with plans for scaling up to a five-kiln configuration that would substantially increase production capacity to meet regional demand.
Economic impact
The Central Lime Project’s economic significance extends beyond its limestone quarrying operations. Marape highlighted the project’s transformational potential during the August final investment decision ceremony, saying it would “provide a substantial boost to our economy and demonstrate our commitment to industrial development”.
The employment impact positions the project as a key economic driver for Central Province and PNG more broadly. With more than 1000 direct and indirect expected jobs, the project will inject significant economic activity into a region that has seen limited large-scale development.
Beyond job creation, the project addresses import dependency for essential building materials, a critical economic challenge facing PNG.
The facility will replace costly imported quicklime and cement with locally manufactured alternatives, reducing the country’s trade deficit while keeping construction material spending within the domestic economy. This import substitution effect creates a multiplier benefit, as funds previously flowing overseas will instead circulate through PNG’s economy.
The project’s revenue potential is equally significant. Marape said the operation will “contribute significantly to government revenues through taxes and royalties”, providing a new income stream for national and provincial governments.
The community development agreement finalised earlier this year is designed to ensure direct financial benefits also flow to local landowner groups.
The strategic positioning within the SEZ amplifies economic benefits by creating a framework for development, potentially attracting complementary industries and further investment to the region.
Development timeline
The Central Lime Project’s journey from concept to construction represents more than a decade of persistence, strategic planning and stakeholder engagement. What began as an ambitious vision under Mayur Resources has evolved through multiple phases to reach its current construction status under the Pacific Lime and Cement banner.
A pivotal moment came when wharf construction got underway in 2023, marking the project’s transition from planning to active development.
This infrastructure development served dual purposes – enabling early barging operations for material transport while laying the groundwork for the broader industrial complex.
Pacific Lime and Cement prioritised this construction phase specifically to create early cash flow opportunities through initial limestone sales.
Then, in February this year, the project gained significant financial momentum. Pacific Lime and Cement raised approximately $97 million in a two-tranche institutional placement, which was underwritten to $53.1 million. This has helped to ensure the company is fully funded for the entire development of Stage 1 and Stage 2 of the Central Lime Project
Community engagement reached a crucial milestone with the finalisation of the community development agreement earlier this year.
These comprehensive stakeholder consultations, involving landowners, various levels of PNG government and community representatives resulted in unanimous agreement on terms.
The company’s strategic evolution was formalised through its rebranding from Mayur Resources to Pacific Lime and Cement, a move completed just prior to the final investment decision ceremony in August. This rebrand, reflecting the transformation from resource developer to integrated industrial materials supplier, coincided with renewed government support, including reaffirmation of the SEZ status with its package of fiscal incentives.
The final investment decision ceremony in Kido Village represented the culmination of this development journey, with Marape’s presence underlining the project’s national significance and clearing the path for full-scale construction to commence.
Current progress
The Central Lime Project’s infrastructure development has progressed through multiple phases, with the strategic wharf construction serving as the foundation for broader site development. The facility has completed its second phase, achieving a critical milestone by enabling roll-on roll-off vessel access for bulk commodity cargo transfer to and from the site.
The wharf’s third construction phase, which is already underway, is designed to accommodate Handymax class ocean-going vessels, a significant upgrade that will take approximately nine months to complete. This enhanced capacity will enable the project to efficiently export products to regional markets while receiving larger shipments of construction materials and equipment.
Beyond marine infrastructure, the project has commenced bulk earthworks ahead of schedule, including initial development of a 27.6km mine access road that will connect the operation to existing transport networks. Geotechnical investigations for major bridge abutments are also underway, helping to ensure the road infrastructure can handle the heavy vehicle traffic associated with a large-scale mining operation.
Community integration remains a priority, with Central Lime Project completing earthworks for a new sports field in Kido, demonstrating commitment to local development alongside industrial construction. Equipment mobilisation is also well advanced, with key infrastructure items including fuel storage tanks, a modular water desalination plant, and materials for fencing, camp facilities and maintenance upgrades already en route to the site. Construction equipment scheduled for third-quarter arrival includes excavators, tipper trucks, service trucks, light towers and power generators.
Pacific Lime and Cement has also established a substantial corporate presence in Port Moresby, with a newly completed office designed to accommodate approximately 50 personnel as project activities intensify.
Future outlook
The Central Lime Project’s initial two-kiln configuration is the first target for expansion when resources and progress allow.
Pacific Lime and Cement has designed the operation with scalability in mind, with its plans to increase capacity to a five-kiln configuration set to substantially boost production to meet growing regional demand for lime products.
This potential is underpinned by the size of the limestone resource, providing decades of mining inventory to support sustained growth. The integrated infrastructure within the SEZ – including power generation, water desalination and the upgraded wharf facilities – creates a platform capable of supporting significantly larger operations without requiring proportional infrastructure investment.
Mulder envisions the project positioning PNG as a regional hub for lime and cement production, serving markets across the Asia-Pacific region.
“PNG will become a pivotal contributor to the regional and global lime industry,” he said.
The SEZ framework also creates opportunities for attracting complementary industries and downstream processing operations, potentially developing an industrial cluster around the core lime production facility. This could transform the site from a single-operation mine into a broader complex.
With early limestone sales targeted for 2026 and full production ramping up shortly thereafter, the Central Lime Project stands ready to deliver on its promise as PNG’s industrial game-changer, creating jobs, reducing imports and positioning the nation as an important new regional supplier of essential building materials.
