Pacific Lime and Cement has signed a key government agreement regarding its flagship Central Lime and Cement project.
The Project Development Agreement was signed in early December by the Papua New Guinea (PNG) government’s state negotiating team and publicly announced by Minister for International Trade and Investment Richard Maru.
The agreement will now be ratified by the Natiional Executive Council and the PNG Governor General, after which it wlil take full effect.
The PDA provides the legal and policy framework for project implementation under both the PNG Mining Act 1992 and the Special Economic Zones Authority Act of 2019. It builds upon and also finalises the Community Development Agreement (CDA) initialled in February 2025.
The agreement provides for state equity participation. The PNG government will have the right to acquire a 13 per cent equity stake in each of the two special purpose vehicles (SPV) focused on quicklime and cement; and then a further 5 per cent option, which can be exercised after the commissioning of each SPV’s production facility.
Up to eight per cent of the state’s 13 per cent equity stake in each SPV will be allocated to landowners in the project area, as well as the government of Central Province.
Pacific Lime and Cement will provide a further two per cent free-carried equity stake in each SPV to local landowners directly. This is in line with commitments made in the CDA.
The project development agreement also sets out the fiscal incentives and rules associated with the Central Lime and Cement project’s special economic zone (SEZ) status.
Pacific Lime and Cement managing director Paul Mulder said the deal reflected a comprehensive alignment between the company and each of the national, provincial and district levels of government.
“By combining sovereign equity participation, SEZ incentives, and free-carried local equity, the project now stands on firm ground to deliver long-term value to all shareholders and national partners.,” he said. “We are grateful for the trust the government and landowners have in us, and we look forward to progressing one of PNG’s most important industrial developments.”
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