Pacific Lime and Cement (ASX:MRL), formerly Mayur Resources, has announced it secured the final investment decision (FID) to proceed with the Central Lime Project in Papua New Guinea. Pacific Lime and Cement focuses on developing natural resources in Papua New Guinea, including lime, cement, iron ore, and industrial sands. The company aims to become a regionally significant supplier of lime and cement products.
The FID follows a strategic redesign aimed at reducing upfront capital expenses. The company plans to fully fund the project from existing cash reserves, supplemented by access to additional contingent funding if required, allowing full-scale construction to commence. Managing Director Paul Mulder stated the decision reflects confidence in the project’s economics, market demand, strategic positioning, and support from the Papua New Guinean government and community.
Mulder emphasised that the equity-only funding model provides funding certainty during construction and improves long-term cash flows for equity holders. The Central Lime Project is anticipated to generate hundreds of direct jobs and thousands of indirect jobs. The project is expected to establish a local lime supply to support construction and industrial development in Papua New Guinea.
By moving forward with the FID, Pacific Lime and Cement has reduced the project’s capital structure risk. The company expects that the revised strategy will improve forecast free cash flow, creating a better platform for long-term growth in the building materials sector.
