‘Shovel-ready’: Mayur Resources’ three projects in Papua New Guinea ready for finance


Mayur Resources’ first three mineral projects in Papua New Guinea are now ‘shovel-ready’ and ready for financing, according to a letter to investors issued by Managing Director Paul Mulder this week. Mayur’s low share price remains an issue, however.

Location of the Central Cement and Lime project (EL2303). Credit: Mayur Resources

The first two stages of Mayur Resources’ Central Cement and Lime Project in Papua New Guinea’s Central Province, and its Orokolo Bay Iron and Industrial Sands project in Gulf Province, are now ready for financing, according to its developer.

‘The development activities of exploration, feasibility studies, permitting/approval, customer off-take support and receival of construction bids have been completed for these projects,’ says a letter to investors from the company’s CEO, Paul Mulder.

He says the company expects construction for the projects to commence ‘as soon as financing has been finalised’.

The Central Cement and Lime Project, northeast of PNG’s capital, Port Moresby, will be in two stages. The first will focus on producing sufficient quicklime – around 200,000 metric tonnes per annum – to meet 100 per cent of PNG’s domestic needs while also providing surplus for export. The second, a much larger AUD$396 million (K945 million) investment, will aim to produce both clinker and cement.

The smaller Orokolo Bay project aims to produce magnetite, high-grade construction sand and zircon concentrate for export to Japan, Australia, China and Singapore.

‘Zero carbon’ strategy

Mayur Resources’ Paul Mulder

In a recent change of strategy, the company has ‘paused’ its long-standing plans for a coal-fired power plant in Lae in favour of pursuing ‘efforts on renewables (solar/geothermal) and the establishment of its PNG Nature Based REDD+ Forestry Carbon Credit projects’.

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Explaining the change in strategy, Mulder tells investors this will enable Mayur to market its products internationally as ‘zero carbon’.

‘The initiative provides major benefits to landowners but also provides our PNG-produced products with a significant competitive advantage in being able to sell products into international markets that are Net Zero from day 1 of production vs. competitors that have made commitments to be net zero in 2030 to 2050.’

Market cap

Mulder’s letter comes after a nine-month period during which Mayur’s share price on the Australian Securities Exchange has fallen by around two-thirds.

In it, he expresses his disappointment that Mayur’s current share price of just AUD$0.9 per share gives the company a market capitalisation of just AUD$23.5 million (K55.7 million), which he notes is ‘AUD$45.5 million (K108 million) less than what has been spent to date’.

‘Management and our large cornerstone investors feel that the market capitalisation does not come close to valuing (a) the money the company has spent … and (b) a value premium on the money invested to date,’ he says.

He warns that, if the market recognition of the value of the company is not forthcoming, it may affect the company’s ‘capacity to raise’ future funds.

‘Such consideration has been raised with the company by large cornerstone shareholders, who have outlined that a review of [the] company’s direction would be warranted, should the situation outlined prevail or worsen.’


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