According to an official, a firm awarded special economic zone designation for a K1.3 billion cement and lime project hopes to lower construction material prices in the country.
Mayur Industries is a Mayur Resources Ltd subsidiary.
Trent Alexander, the project's chief operating officer, stated that the project will now be able to establish cheaper building material costs for PNG.
The Central Cement and Lime (CCL) project will be able to compete with roughly 1,000 economic zones in Southeast Asia, including India and China, thanks to the designation accorded to it.
He said that surplus output might be sold to neighbouring countries, making PNG's exports more competitive.
The Globe Bank estimates that there are between 3,500 and 4,000 special economic zones in the world.
PNG, according to Alexander, has been unable to generate vertically integrated quicklime, clinker, and cement.
Thailand, Malaysia, Japan, and China were all required to import.
“There simply has never been a viable economic business case that justified the establishment of such a facility that competes with Asian imported alternatives and those manufacturing facilities established in the various types of economic zones (set up by South East Asian governments).
“The SEZ license covered the same area as the mining lease already granted for the CCL project, located across Kido and Rea Rea. It would now offer further reason for global manufacturing/industrial investors to at least equitably consider putting their capital into PNG and not just prioritise other South East Asian countries and their economic zones, over Papua New Guinea.”
It will give income tax relief, import tariff exemptions, and other advantages to Central, landowners, Mayur's manufacturing company, and new investors in order to lower the high cost of construction materials.
Reference:
The National (20 September 2021). “Project aims to cut costs”.
