Pacific Lime and Cement has locked in a long-term quicklime supply deal with Newmont, anchoring Papua New Guinea’s first domestic quicklime manufacturing project and advancing local industry development.
- Long-term quicklime offtake agreement with Newmont
- Contract covers one-third of Central Lime Project’s production capacity
- Supports PNG’s buy-local and ESG initiatives
- Reduces reliance on imported quicklime and transport emissions
- Agreement contingent on project completion and commissioning
A Milestone for PNG’s Industrial Landscape
Pacific Lime and Cement Limited (ASX – PLA) has taken a significant step forward by securing a cornerstone offtake agreement with Newmont Corporation, the world’s leading gold producer, for its Central Lime Project in Papua New Guinea. This deal marks the first large-scale commercial commitment to locally produced quicklime in PNG, a critical industrial input for mining and construction.
The agreement commits Newmont to purchasing approximately one-third of the project’s nameplate production capacity, providing a solid foundation for Pacific Lime’s ambitions to establish PNG’s first domestic quicklime manufacturing operation. This not only underpins the commercial viability of the Central Lime Project but also signals growing confidence in PNG’s capacity to supply Tier-1 mining standards locally.
Strategic and Environmental Implications
Replacing imported quicklime with a local supply chain offers multiple benefits. For Newmont, it enhances supply-chain resilience by reducing exposure to international logistics disruptions, a critical factor in today’s volatile global trade environment. Additionally, sourcing quicklime domestically aligns with Newmont’s environmental and social governance (ESG) goals by cutting transport emissions and fostering local economic development.
For Papua New Guinea, the project promises to generate local employment, develop skills, and build nationally significant industrial capability. Situated within a designated Special Economic Zone, the Central Lime Project is poised to become a cornerstone of PNG’s industrial growth, supporting broader economic and ESG objectives.
Commercial and Project Outlook
The multi-year offtake agreement is set to commence following the completion and commissioning of the Central Lime Project, subject to customary conditions. While specific commercial terms remain confidential, the arrangement reflects market-based pricing and delivery mechanisms typical of long-term industrial supply contracts.
Securing Newmont as a cornerstone customer materially de-risks the project, providing Pacific Lime with a strong platform to engage additional domestic and regional customers as it moves toward first production. The company is actively collaborating with Newmont on operational readiness, quality assurance, and logistics planning to ensure a smooth transition to supply.
Looking Ahead
Pacific Lime’s Managing Director Paul Mulder highlighted the significance of the agreement, noting it validates over a decade of work to establish a domestic quicklime industry capable of meeting global mining standards while delivering social and environmental benefits. Newmont’s Lihir General Manager, Dawid Pretorius, emphasised the shared value created through this partnership, underscoring a commitment to long-term social and economic benefits for PNG.
As the Central Lime Project advances, this offtake deal not only strengthens Pacific Lime’s commercial prospects but also sets a precedent for industrial projects in PNG to meet the demanding requirements of Tier-1 global mining companies.
Bottom Line?
With Newmont on board, Pacific Lime’s Central Lime Project is poised to reshape PNG’s industrial supply landscape.
Questions in the middle?
- What is the expected timeline for the Central Lime Project’s construction and commissioning?
- Which other domestic or regional customers might Pacific Lime secure next?
- How will pricing and volume terms evolve as the project scales production?