Pacific Lime and Cement maps out PNG industrial precinct

• Strategic plan completed for Kido/Rearea industrial precinct and international port
• Central Lime and Central Cement remain the precinct’s anchor industries
• Long-term vision targets manufacturing, logistics and export opportunities

Special Report: Pacific Lime and Cement’s Central Lime and Central Cement projects will anchor a strategic plan for a proposed industrial precinct and multi-berth port in Papua New Guinea.

The plan covers a 4500-hectare gazetted Special Economic Zone (SEZ) about 35km from Port Moresby and 7km from the PNG LNG project.

It builds on industrial precinct studies and modelling that Pacific Lime and Cement (ASX:PLA) has undertaken since February 2025 and sets out a staged framework for the precinct.

Under the plan, the SEZ will be developed into a broader industrial and logistics hub, with its lime and cement projects providing the initial manufacturing base.

With input from European port specialists MTBS, the port development plan has been aligned with industrial land use, shared utilities and future expansion opportunities.

The private international port is under construction, designed to International Ship and Port Facility Security (ISPS) Code standards, with expansion plans approved.

Building an industrial gateway

A key feature of the precinct is the combination of long-term land tenure, port infrastructure and SEZ status.

Land is held under 99-year State leases through 50:50 joint ventures with recognised landowner companies, giving landowners free-carried equity and opportunities to establish supporting businesses.

The PNG State, through Kumul Minerals Holdings, holds a 13% equity interest in the international port and in PLA subsidiaries’ share of the State lease land.

Qualifying businesses may be eligible for 10 years of fiscal concessions, including exemptions from corporate tax, dividend withholding tax, foreign contractor withholding tax and import duties.

PLA is targeting the ability to prepare additional industrial sites within about six months, subject to tenant demand.

“Lime and cement remain PLC’s priority and the cornerstone of the integrated precinct,” managing director Paul Mulder said.

“The SEZ and port have always been intended to support the Central Lime and Central Cement projects, and completing this planning allows us to make better use of that infrastructure without diverting focus or capital from those projects.

“With the core infrastructure established, we expect majority of further development to be funded by third parties, with PLC, our landowner partners and the State benefiting as landholders.”

The broader plan identifies opportunities in downstream building materials, gas and energy-related industries, fuel storage, logistics, fabrication, warehousing, data centres and workforce training.

An indicative first stage covers about 560 hectares, while longer-term planning envisages up to 3,017 hectares of industrial, logistics, utility and urban development over 30 years.

PLA expects incoming tenants and strategic investors to develop their own facilities, leaving the company to focus on its lime and cement projects while potentially earning leasing and sublicensing income through its landholding interests.

Discussions with international development finance institutions about enabling infrastructure, including a proposed wharf expansion, remain non-binding.

PNG’s nation-building ambitions

The Kido/Rearea plan aligns with Papua New Guinea’s policy focus on domestic manufacturing and reducing reliance on imported industrial products.

Figures from the PNG National Statistical Office show merchandise imports reached K28.85 billion in 2025, up 12.5% from K25.63 billion in 2024.

The government’s Special Economic Zones Foundation Policy 2025–2032 identifies downstream processing, import substitution and value-added exports among its priorities.

Adding interest, the Asian Development Bank’s 2026–2030 country partnership strategy also supports better transport and energy connections and a more diversified economy.

Central Lime’s planned quicklime production could help replace imports, with quicklime used in mineral processing and other industries.

For PLA, infrastructure at Kido is already supporting project delivery: the first major shipment of quicklime kiln equipment arrived at Port Kido, carrying more than half the equipment and materials required for its two planned production lines.

The project has moved towards mechanical erection, assembly and installation, with first production targeted for the first quarter of 2027.

PLA will continue prioritising delivery of Central Lime and Central Cement while engaging with prospective tenants and infrastructure partners.

The next steps include continuing DFI discussions and tenant engagement alongside the lime and cement projects.

This article was developed in collaboration with Pacific Lime and Cement, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions

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