Highlights

  • The Central Lime Project moved from civil construction to equipment installation, with first lime targeted for late Q1 to Q2 CY2027.
  • The first major shipment, carrying more than 50% of kiln and process plant equipment, arrived at Port Kido on 19 October 2026.
  • The PNG Government invested US$16.3 million for a 13% equity interest in the Central Lime Project company.
  • US$10 million of convertible notes will convert into CDIs, removing the need for cash redemption.

Pacific Lime and Cement Limited (ASX:PLA) has released its quarterly activities report for the period ended 30 September 2026. The quarter marked a shift at the Central Lime Project in Papua New Guinea from major civil works to equipment installation, supported by new government equity investment.

Central Lime Project Construction Progress

Kiln and process plant engineering is complete, and off-site fabrication by supplier Shanghai Maiyao Engineering was 95.6% complete. Support columns for both kilns are finished, and equipment erection is expected to begin in early November 2026. The first major shipment from China arrived at Port Kido on 19 October 2026, carrying kiln shell sections, structural steel and plant components for two 600-tonne-per-day quicklime lines.

First lime from Kiln 1 is targeted for late Q1 to Q2 CY2027, with both kilns targeted for completion in Q2 CY2027. The forecast final project cost is A$129 million, within the A$133 million funding envelope. Higher shipping and freight costs were the largest call on contingent funding. The workforce reached 495 people, 97.6% of whom are PNG nationals.

PNG Government Investment and Central Cement

On 27 July 2026, the PNG Government, through Kumul Minerals Holdings Limited, agreed to acquire a 13% interest in Mayur Industrials PNG Limited, which owns the Central Lime Project, for US$16.3 million. The State also holds options to acquire a further 5% of the lime project and up to 30% of the Central Cement Project company.

For the Central Cement Project, four EPC offers were received when tenders closed on 12 October 2026. The two highest-ranked bidders will proceed to the final stage, with a Preferred Tenderer targeted by 18 December 2026. A final investment decision is targeted for Q1 CY2027, subject to funding and Board approval.

Special Economic Zone and Financial Position

A strategic plan for the approximately 4,500-hectare Kido/Rearea Special Economic Zone and a multi-berth international port was completed. On 29 September 2026, CEPA approved the Phase 4 Marine Terminal Expansion, covering an international wharf and breakwater.

Cash was A$16.4 million at 30 September 2026. Noteholders served notices to convert US$10 million of convertible notes and capitalised interest into about 71 million CDIs on 31 October 2026. The Appendix 5B estimates 0.46 quarters of funding, and management expects further sources, including a proposed working capital facility and asset realisations, to cover remaining Central Lime costs.

Key Takeaways

  • The Central Lime Project has entered its equipment installation phase.
  • The PNG Government is now a 13% equity partner in the lime project.
  • Central Cement is progressing toward selecting a Preferred Tenderer by December.
  • Note conversion removes a near-term cash redemption, although funding headroom remains tight.