Pacific Lime and Cement Advances Central Lime Project with PNG Government Equity Participation

Infrastructure Milestones Unlock Logistics and Community Access

Pacific Lime and Cement Limited (ASX:PLA) has achieved a breakthrough quarter on its Central Lime Project, with the completion and opening of a 27.6-kilometre access road and two river bridges, connecting the Kido and Rearea communities directly to Port Moresby for the first time. The Geva and Ibiri Bailey bridges, capable of supporting 60 tonnes, have enabled single-lane access to the Kido peninsula, with a two-lane upgrade due by the end of September 2026. This infrastructure not only facilitates project logistics but also delivers tangible benefits to local communities, marking a pivotal step in the project’s integration with regional transport networks.

Construction Progress and Workforce Expansion

The construction of kiln foundations for the incoming lime kilns has materially advanced, alongside the receipt of 369 tubular foundation piles for the Phase 3 wharf extension, each measuring 40 metres in length and weighing over 20 tonnes. Plant erection is slated to commence in late September 2026, signaling momentum towards operational readiness. The workforce has surged from 175 to 391 personnel within the quarter, with local employment nearly doubling to 203, reflecting the company’s commitment to community engagement and capacity building. Safety remains a focus, with only one lost-time injury reported during this period.

PNG Government’s Strategic Equity Injection

Post-quarter, the Papua New Guinea Government, through its nominee Kumul Mineral Holdings Limited (KMHL), executed binding agreements to inject US$16.3 million for a 13% equity stake in the Central Lime Project’s project vehicle, Mayur Industrials PNG Limited. This move, approved by the National Executive Council, cements sovereign backing and institutional support for the project. KMHL retains options to increase its stake by an additional 5% within 180 days of operations commencing and to acquire up to 30% in the Central Cement Project ahead of its expected final investment decision in late 2026. This equity participation aligns government interests with those of the company and project-area landowners, enhancing the project's financial and political foundations. The PNG Government’s involvement also provides access to non-dilutive funding sources, complementing existing working capital facilities.

Central Cement Project Advances with IFC Support

Meanwhile, the Central Cement Project continues to progress under the advisory partnership with the International Finance Corporation (IFC). Key workstreams including a refreshed Definitive Feasibility Study, market assessment, environmental and social impact reviews, and financial modelling are advancing towards a targeted final investment decision later this year. The IFC’s involvement underscores the project’s alignment with international sustainability and financing standards, a critical factor for long-term viability.

Broader Portfolio Development and Financial Position

Pacific Lime and Cement is also advancing its Orokolo Bay Industrial Sands Project, with SinoHydro PNG conducting technical assessments and marine logistics tenders underway to validate export pathways. The Mayur Renewables division maintains regulatory engagement on geothermal and solar PV/battery storage projects, alongside carbon credit initiatives through the Kamula Doso Conservation Project. Financially, the company closed the quarter with A$16.7 million in cash, having spent A$24.5 million on exploration and development activities primarily related to the Central Lime Project. Convertible notes totaling US$10 million remain outstanding, with maturity set for October 2026. Despite cost pressures linked to geopolitical developments and global shipping costs, management confirms these remain contained within the project’s approved funding envelope, supported by government equity and other financing mechanisms.