Central Cement and Limestone Project Kicks Off Draft Community Agreement in Papua New Guinea
The Central Cement and Limestone Project has taken a significant step forward with the unveiling of the initial draft of its Community Development Agreement (CDA) in Port Moresby. This landmark development brings together local landowner groups, the Mineral Resources Authority (MRA), and Mayur Resources Limited, the project’s developer, signaling the dawn of a new era of industrial growth for Papua New Guinea.
The ambitious US$350 million (approximately K1.4 billion) initiative is set to revolutionize the nation’s construction sector. The project will be implemented in two phases: an initial investment of US$110 million for quick lime production, followed by a US$240 million phase dedicated to cement manufacturing. With a projected lifespan exceeding 100 years, the project promises to reduce Papua New Guinea’s reliance on imported materials while creating thousands of jobs.
According to Mayur Resources, the project is expected to generate an estimated 1,800 jobs during its construction phase, 500 permanent positions, and over 10,000 downstream-related roles. This is anticipated to provide a significant boost to local economies and livelihoods.
Paul Mulder, Managing Director of Mayur Resources, described the journey to this point as a decade-long process marked by extensive dialogue between developers, landowners, and other stakeholders. “Reaching this stage of drafting the CDA is a relief and a testament to the commitment of all parties involved,” Mulder said. “This includes the National Government, Central government, Hiri-Koiari communities, and the Kido and Lealea landowners.”
Mulder emphasized the importance of transparency throughout the negotiations, noting that all parties prioritized accountability and openness. “This project is designed to serve as a benchmark for transparency—not just for us as developers, but also for the landowners and the State,” he added. “Everyone showed tremendous patience, and it was worth the wait to ensure this process sets a standard for future developments.”
Construction activities are already underway, with work progressing on the project’s wharf infrastructure. The next critical step involves finalizing consultations with stakeholders. Meanwhile, contract tenders for construction have been issued, with bids received and currently under evaluation. Deployment of capital is expected to proceed once consultations are completed and regulatory approvals are secured.
Once operational, the facility is projected to produce up to 400,000 tonnes of quick lime and 1.7 million tonnes of cement annually. This output is expected to replace Papua New Guinea’s dependence on imported quick lime and cement, fostering self-reliance and supporting domestic industries.
The MRA revealed that the CDA draft will undergo a rigorous review process, with submissions required to several government departments. These include the Department of Commerce for a business development plan, the Department of Labour and Industrial Relations for workforce training strategies, the Treasury for fiscal clearance, and the State Solicitor’s Office for legal approval. All processes are expected to be finalized by next month, paving the way for the signing of the final investment decision.
As Papua New Guinea moves closer to realizing this transformative project, anticipation grows for its potential to drive sustainable economic growth and strengthen the nation’s industrial capacity. For many, the Central Cement and Limestone Project represents not just an industrial breakthrough, but a beacon of hope for long-term development and prosperity.
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