Mayur Resources moves closer to new cement and lime project go-ahead

Mayur Resources' vision to build Papua New Guinea’s first cement project is becoming clearer after the company announced it had signed all the landholder compensation agreements required for the development of its flagship Central Cement and Lime project, near Port Moresby, Papua New Guinea.

Ongoing due diligence is continuing with potential strategic funding partners for the US$350m project which has a target annual production of 1.65Mta cement/clinker and 200,000tpa of quicklime for supply to Papua New Guinea, Australia and Pacific markets.

The backing of 35 local landholders emphasises the significant community support for the project while providing major impetus for the company's mining lease application currently being assessed by the Mineral Resources Authority.

Memorandum of Agreement negotiations have also commenced that will complement a granted mining lease, whereby PNG State fiscal incentive regime, landowner spin off businesses and other central province and PNG state support arrangements will be captured.

Mayur's Lime & Cement CEO Kevin Savory, who hosted the signing ceremony in Port Moresby, said the project provided immense value to all stakeholders.  "We are grateful for the support of our Central Cement & Limestone Project which will dramatically improve the socio-economic outcomes for local communities as well as Papua New Guinea which has declared a strongly focussed agenda for nation building and import displacement amid a rising economic trajectory," Mr Savory said.

"It not only serves Papua New Guinea's future cement and lime requirements but also responds to Australia's increasing shift to imports of clinker and cement brought about by ageing cement plants and rising costs."