Mayur Secures $11.2M to Launch Orokolo Bay Magnetite Production by Q4 2025

A Decade in the Making: Funding Secured for Orokolo Bay

After more than ten years of planning and groundwork, Mayur Resources Limited (ASX: MRL) has reached a pivotal milestone for its Orokolo Bay Industrial Sands Project (OBP) in Papua New Guinea’s Gulf Province. The company announced definitive agreements with Pacific Unison Holdings Limited, securing up to USD 11.2 million to fund the construction and commissioning of a magnetite-only processing plant. This funding is expected to propel the project into production by the fourth quarter of 2025, with an annual output target of 500,000 tonnes of magnetite.

The OBP represents a strategic asset within Mayur’s broader industrial sands portfolio, and this agreement marks the transition from development to operational phase. Mayur retains full equity ownership of the project while sharing future profits equally with Pacific Unison, which assumes responsibility for all capital funding and construction activities. This arrangement allows Mayur to focus its resources on its flagship Central Cement and Lime Project, while still benefiting from OBP’s future cash flows.

Economic and Community Impact in Papua New Guinea

The project is more than a commercial venture; it aligns closely with Papua New Guinea’s national goals for economic growth and industrial development. The Governor of Gulf Province, Hon. Chris Haieveta, emphasized the transformative potential of the OBP, highlighting its capacity to create over 130 direct jobs and 450 indirect jobs, while fostering local skills and resources. The production of domestically sourced magnetite could also lay the groundwork for PNG’s first small-scale iron and steel industry, a significant step towards import substitution and export diversification.

Mayur’s Managing Director, Paul Mulder, underscored the project’s role in building the foundational materials PNG needs, iron, cement, lime, and construction sand, to support infrastructure development and economic resilience. The partnership with Pacific Unison, a PNG-based company with expertise in construction and mining services, further strengthens the local content and capacity-building aspects of the project.

Strategic Synergies and Future Growth Potential

The OBP’s successful development is expected to catalyse progress across Mayur’s wider portfolio of mineral sands projects, including high-grade titanium and vanadium deposits at Amazon Bay and Kiwai Island. These minerals are critical for emerging technologies such as renewable energy storage and advanced manufacturing. The dual titanium-iron composition of titanomagnetite and the growing demand for vanadium in grid-scale batteries position Mayur’s assets at the intersection of resource security and clean energy transitions.

Construction is already underway, with offshore equipment fabrication and village infrastructure progressing. The governance structure established between Mayur and Pacific Unison includes a joint executive board to oversee strategic and operational decisions, ensuring transparency and alignment throughout the project’s lifecycle.

Looking Ahead: Execution and Market Implications

With funding secured and construction in motion, the OBP is poised to become a key contributor to PNG’s mining sector and Mayur’s growth trajectory. The company’s commitment to environmental, social, and governance (ESG) standards and community engagement will be critical as the project advances. Investors will be watching closely to see if the OBP can meet its production targets and deliver on its promise of economic and social benefits.

Mayur’s strategic focus on developing ‘building blocks’ for PNG’s industrial base, combining mineral sands, cement, lime, and renewable energy, could position the company as a cornerstone of the country’s resource-driven development in the coming decade.