What's Happening?
Brisbane-based Pacific Lime and Cement (PLC) has entered into a significant long-term agreement with Newmont, a major player in the gold and copper industry, to supply quicklime from its Central Lime project in Papua New Guinea. This agreement marks the first large-scale commercial commitment to locally produced quicklime in the country, with Newmont becoming a cornerstone customer. The contracted volumes will account for about one-third of the Central Lime project’s production capacity. The project aims to replace imported quicklime, thereby supporting local employment and reducing reliance on international suppliers. The agreement also enhances supply-chain resilience for Newmont by minimizing exposure to global logistics disruptions and aligns
with environmental goals by reducing transport emissions.
Why It's Important?
This agreement is pivotal for Papua New Guinea as it establishes the country's first domestic quicklime manufacturing operation, potentially substituting tens of millions of dollars in imports. It supports local economic growth by creating jobs and fostering skills development. For Newmont, the deal ensures a stable supply of quicklime, crucial for its gold operations, while reducing logistical risks associated with international supply chains. The environmental benefits include decreased emissions from reduced transportation distances. This development underscores a commitment to sustainable practices and local industry support, which can lead to broader economic and social benefits for the region.
What's Next?
With the foundation offtake agreement in place, Pacific Lime is poised to advance the Central Lime project towards production. The company plans to engage in further discussions with potential customers to expand its market reach. For Newmont, the focus will likely be on integrating this new supply chain into its operations and monitoring the project's impact on its logistical and environmental strategies. The success of this agreement could encourage other companies to consider similar local sourcing strategies, potentially leading to more domestic industrial projects in Papua New Guinea.
