A project to convert Simbu province's vast limestone resource into cement will begin this year, said Peter O'Neill, Papua New Guinea's Prime Minister.

The Prime Minister told Parliament that the province's Chuave district has a limestone resource that will be commercially developed under a project that has already been brought before Cabinet for its approval.

"The NEC has approved PGK28m (US$10m) for this project. We are now insisting that a credible partner be found to fully develop this project.

"Once this partner is confirmed, the government will transfer the money to the project," Mr O'Neill said.
He added that the funds would be allocated for a feasibility study to be carried out and a viable partner to be found to start the project. The cement plant is set to transform the economy of the province, whose people rely on small holder coffee, animal husbandry and subsistence farming for their livelihood.

"This project has evoked the people's expectations, and we can't keep them waiting. We have to proceed with it," the Prime Minister said.

It is understood the plant will initally manufacture 2500tpd of cement and will be jointly sponsored by the Department of Commerce, Trade and Industry and the Independent Public Business Corporation (IPBC).

Cement will be supplied to a number of major projects being planned, including the Purari Hydro in the Western province, the Daru port, and emerging mining and petroleum projects in the country.