MAYUR Resources is in advanced discussions with a large-scale international investor looking for a stake in the company’s proposed Central Cement and Lime project outside Port Moresby.
The company in its annual report released on Friday said it followed a 20-year mining lease it was awarded by the Government last August.
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| Port Moresby |
According to the report, the project has been granted special economic zone status, confirming its support from local authorities and securing a range of concessions including tax relief and duty exemptions.
“This significantly strengthens the financial outcomes for the project, enabling it to compete with other similar businesses established in special economic zones elsewhere in Asia,” the report said.
“With a number of multi-billion-dollar resource and infrastructure projects in the pipeline in PNG, the demand for cement and quicklime is expected to increase dramatically.”
The company will deliver the project in two phases. Phase one is the quicklime plant and phase two is the clinker and cement facilities which will be developed thereafter, with development costs supported with cash flow from the first phase.
“The procurement strategy for the project has continued with the engineering, procurement and construction scope to include a minimum of two quicklime kilns to take advantage of economies of scale and shared infrastructure.
Mayur said the proposed project was a vertically integrated manufacturing facility that had the potential to meet 100 per cent of PNG’s cement, clinker and quicklime requirements, with exports into the Australasian region, thereby displacing Asian imports into the region.
Located on the coast, 25km north of Port Moresby, and seven kilometres from Exxon’s PNG LNG facility, the project’s co-located quarry, plant site and deep draft wharf would enable very low operating costs while providing direct access to both the seaborne domestic and export markets such as Australia and other South Pacific nations.
Statement
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