Pacific Lime and Cement Limited has formalised a Project Development Agreement (PDA) with the Papua New Guinea government for its Central Lime and Cement Project, a move officials described as a “sovereign milestone” after more than a decade of planning.
The PDA, initialled by the State Negotiating Team representing the government, was publicly announced by the Hon. Richard Maru, Minister for International Trade and Investment, on Tuesday. The agreement now awaits ratification by the National Executive Council (NEC) and will be formally signed at Government House by PNG Governor General Sir Bob Dadae.
The PDA sets the legal and policy framework for the project under the PNG Mining Act 1992 and Special Economic Zones Authority Act 2019, and finalises a Community Development Agreement initially signed in February 2025. It is legally binding under PNG law and enforceable through international arbitration if necessary.
Key provisions of the agreement include a 13 percent equity stake in each of the project’s two Special Purpose Vehicles — Quicklime and Cement — available to the PNG government, with an option to increase to 18 percent post-commissioning. Valuations reflect discounts recognising the government’s contribution, including fiscal concessions and regulatory support.
Up to eight percent of the government’s equity stake will be allocated to project-area landowners and the Central Provincial Government, funded by the state. Pacific Lime and Cement will provide an additional two percent free-carried equity to local landowners, consistent with prior commitments.
The project has also been granted full Special Economic Zone fiscal treatment, including corporate tax concessions, import duty relief, and contractual stabilisation provisions for the remaining term of the SEZ licence, running until at least 2035.
The PDA contains measures to protect government and landowner equity from dilution, guarantees oversight through open-book governance, and provides for transparent reporting. Any future initial public offering of the Cement SPV will offer at least ten percent of shares to PNG citizens.
The Central Lime and Cement Project has been formally deemed of national significance under PNG law, reflecting its importance to the country’s industrial and infrastructure development.
Managing Director Paul Mulder said: “The PDA reflects a comprehensive alignment between PLC, the PNG Government (at State, Provincial and District levels), and landowner stakeholders. By combining sovereign equity participation, SEZ incentives, and free-carried local equity, the project now stands on firm ground to deliver long-term value to all shareholders and national partners. We are grateful for the trust the Marape-Rosso Government and landowners have in us, and we look forward to progressing one of PNG’s most important industrial developments.”
