Pacific Lime and Cement (ASX:PLA) has secured a long-term quicklime offtake agreement with mining giant Newmont Corporation (ASX:NEM).
Announced on Feb. 16, this cornerstone partnership marks a pivotal turning point for the Central Lime Project, situated in PNG’s Central Province.
Under the terms of the deal, Newmont will purchase approximately one-third of the project's total nameplate production capacity, providing the financial and commercial bedrock necessary to launch the nation's first domestic large-scale quicklime manufacturing operation.
By sourcing quicklime locally, Newmont aims to insulate its operations from the volatility of international logistics and reduce its carbon footprint through decreased transport emissions.
The shift aligns with PNG's "buy-local" framework, intended to replace expensive offshore imports with high-quality, domestically produced industrial inputs that meet Tier-1 global standards.
For the local economy, the project is a beacon of industrial growth. It is expected to catalyse employment, foster advanced technical skills, and establish a robust supply chain within a designated Special Economic Zone.
While specific pricing remains confidential, the commercial framework includes market-based escalation mechanisms to ensure long-term sustainability.
The partnership effectively de-risks the Central Lime Project, signaling to regional investors that PNG-based industrial processing can satisfy the rigorous operational and ESG requirements of the world's leading mining companies.
At the time of reporting, Pacific Lime and Cement's share price was $0.30.