Highlights

  • Pacific Lime and Cement shares rose 3.51% on 16 February 2026, followed by announcing a long-term quicklime agreement with Newmont
  • Newmont will take volumes representing roughly one-third of the Central Lime Project’s planned production capacity.
  • Agreement underpins development of PNG’s first domestic quicklime manufacturing facility.
  • Project aims to replace imported quicklime with locally produced supply.

Pacific Lime and Cement Limited (ASX:PLA) (PNGX:PLC) shares rose 3.51% to AUD 0.30 on 16 February 2026, following the release of a favourable operational update that the Company entered into a long-term supply agreement with global gold producer Newmont Corporation. Despite today’s gain, the stock remains down 15.71% over the past year.

The Company has secured Newmont as a foundation customer for its Central Lime Project in Papua New Guinea (PNG). The contracted supply is expected to account for roughly one-third of the project’s planned production capacity once operational.

Management described the agreement as a key commercial milestone, as it underpins the development of what is intended to be PNG’s first domestic quicklime manufacturing facility.

Strengthening PNG’s Industrial Backbone

The Central Lime Project is being developed to reduce reliance on imported quicklime currently shipped into PNG. According to the Company, supplying locally manufactured product is expected to improve supply-chain reliability while aligning with environmental and social objectives, including lower transport emissions and increased in-country economic participation.

The project precinct forms part of a designated Special Economic Zone intended to encourage domestic processing and manufacturing capability.

From Foundation Deal to First Production

The Newmont agreement is structured as a long-term supply arrangement that will take effect once construction and commissioning of the Central Lime Project are completed, subject to standard conditions. Deliveries will originate from PLC’s integrated project precinct, located within a designated Special Economic Zone established to promote domestic processing and manufacturing capability in Papua New Guinea.

While detailed pricing, escalation mechanisms, and volume scheduling remain confidential, the Company confirmed the terms align with standard market-based industrial supply agreements.

Management indicated that securing a cornerstone customer meaningfully strengthens the project’s commercial position, reducing development risk as PLC advances toward first production. The Company is continuing discussions with additional domestic and regional customers while progressing construction readiness, quality systems, and logistics planning in collaboration with Newmont.

Commenting on the milestone, Managing Director Paul Mulder said the agreement marks a pivotal step not only for PLC but also for PNG’s broader industrial ambitions, reflecting more than a decade of groundwork to establish Tier-1 compliant domestic quicklime production. Newmont’s Lihir General Manager, Dawid Pretorius, added that the partnership is focused on long-term shared value creation and strengthening local industrial capability rather than short-term cost considerations.

FAQs

  1. Why did Pacific Lime and Cement shares rise today?

The stock moved higher after the Company announced a long-term quicklime offtake agreement with Newmont, securing a major foundation customer for its Central Lime Project.

  1. How significant is the Newmont agreement?

The contracted volumes represent approximately one-third of the project’s planned production capacity, providing meaningful commercial support as the project moves toward first production.

  1. When will supply begin?

The agreement will commence following completion of construction and commissioning of the Central Lime Project, subject to standard conditions.