Pacific Lime and Cement Limited (ASX: PLA) has announced that the Government of Papua New Guinea has officially exercised its equity participation rights in the Central Lime project. Through its state nominee, Kumul Mineral Holdings Limited, the government will acquire a 13% interest in the project’s dedicated subsidiary, Mayur Industrials PNG Limited, for a consideration of US$16.3 million. This transaction marks the first capital commitment by the state under the project development framework established in March 2026.

The government also retains an option to purchase an additional 5% equity interest for roughly US$6.8 million. This secondary option is exercisable within 180 days of the commencement of operations, with the company currently forecasting the first production of quicklime to occur in the first quarter of 2027.

"The PNG Government's decision to invest directly in the Central Lime Project is a landmark milestone that further strengthens the sovereign and institutional foundations of what we are building."

"This development enables PNG to reduce reliance on imported quicklime from distant markets such as the Middle East and Asia and instead source high-quality, cost-competitive product that is locally manufactured by Papua New Guineans."
— Paul Mulder, Managing Director; Sarimu Kanu, KMHL Managing Director

The Central Lime project is part of a broader industrial initiative that includes a separate cement development. As part of the ongoing project structure, Kumul Mineral Holdings Limited also holds the right to acquire up to 30% of the Central Cement Project, which is currently targeting a final investment decision in the fourth quarter of 2026. The company intends for these integrated operations to serve as a cornerstone of the nation’s domestic infrastructure supply chain, reducing dependency on overseas imports.

These assets are supported by a significant land position, with the company holding a 99-year lease over approximately 5,200 hectares situated within a designated Special Economic Zone. This zone provides the project with specific legislative benefits, including a 10-year exemption from corporate income tax, payroll tax, and various import and export duties. With construction ongoing at Central Lime and the government now formalised as an equity partner, management is transitioning focus toward finalising the development plans for the secondary cement phase. The company expects construction activities for the lime project to begin ramping down as cement-related operations scale up during the first half of 2027, maintaining the development momentum established by the initial capital injection and the underlying project development agreement.

Read the full announcement: PNG Govt Acquires 13% Stake In Central Lime Project