PNG to take equity in Central Lime and Cement Projects following landmark agreement
Local Landowners and the Central Province and National Governments will have equity in Pacific Lime and Cement’s development at Kido, following the signing of a Project Development Agreement [PDA].
The PDA initialed by Chairman for State Negotiating Team, Mr. Dairi Vele, was announced by Minister for International Trade and Investment, Richard Maru, at PNG Investment week in Sydney last week. It will be ratified by the National Executive Council and formally signed by the Governor-General in the coming days.
The agreement delivers long-term certainty for participants and confirms strong alignment between the Company and PNG for what will be a nation building project that will help secure PNG’s domestically produced lime and cement supply.
The national partnership promises wide-reaching benefits for local landowners and communities. It ensures that the people of Papua New Guinea are not just participants, but owners and beneficiaries of the Central Lime and Cement Project.
Under the agreement the PNG Government secures a 13% equity stake in both the quicklime and cement operations, with an option to increase to 18% post-commissioning.
Of the State’s stake, up to 8% will be allocated to landowners and the Central Provincial Government, fully funded by the State. In addition, Pacific Lime & Cement will provide 2% free-carried equity directly to landowners, delivering them a meaningful share in future revenues.
The project is granted full Special Economic Zone status, with corporate tax concessions, import duty exemptions, and stable terms through to at least 2035.
The PDA includes safeguards to prevent equity dilution and commits to open-book governance and regular reporting, protecting the interests of landowners and the State.
In any future public listing of the cement business, a minimum of 10% of shares will be offered to PNG citizens, ensuring ordinary Papua New Guineans can invest in and benefit from the project’s growth.
Managing Director Paul Mulder said: “Our project will provide hundreds of jobs during construction and operations, but more importantly, it creates a value adding industry that will provide PNG with locally produced construction materials. This will open up opportunities for new residential, civil and commercial infrastructure and will drive PNG’s economic growth into the future.
“The agreement PDA reflects the strong alignment between PLC, the PNG Government, and our landowner partners. With SEZ incentives and local equity participation, the project now has the certainty it needs to deliver long-term value.”
“We are grateful for the trust shown by the Marape-Rosso Government and our local stakeholders,” Mulder added. “This project is a catalyst for sustainable development and industrial progress for Papua New Guinea,” he said.
Pacific Lime and Cement took a final investment decision on the Central Lime Project in August. The project is now under construction, while the Central Cement Project has all key approvals in place and expected to start construction in 2026.