Sir Mick Davis, the former CEO of Xstrata and a prominent figure in the mining industry, has announced his latest venture: a $40 million investment in a lime project in Papua New Guinea. The project, owned by Australian company Mayur Resources, aims to produce high-quality lime products for various environmental and renewable energy sectors.
The investment agreement, subject to certain conditions, will give Davis’ Vision Blue Resources (VBR) a 49% equity stake in the Central Lime Project (CLP). The CLP is the first phase of a vertically integrated manufacturing facility that will be able to meet 100% of Papua New Guinea’s raw lime, lime, hydrated lime, and other building material requirements.
The CLP will consist of a co-located quarry, plant site, and deep draft wharf that will enable scalable production of high-grade limestone, aggregates, and lime products. The project will also implement onsite carbon reduction initiatives to minimize its environmental impact.
The VBR investment will cover the total equity funding component of the CLP, while Mayur Resources is working with VBR to secure debt financing of between $70 million and $90 million. The higher end of the debt financing range will allow the CLP to expand beyond its ‘base case’ scenario.
Construction of the CLP’s wharf infrastructure started earlier this year, which Mayur Resources said would potentially allow for early cash flow generation in 2024 through the sale of high-grade limestone. The project will also create hundreds of jobs and replace all of Papua New Guinea’s current imports of lime valued at about K$100 million (A$42.8 million) a year.
Mayur Resources’ managing director, Paul Mulder, said he was thrilled to partner with Vision Blue on the CLP. “Vision Blue recognizes the pivotal role the Central Lime Project can play in meeting the escalating demand for lime across various environmental and renewable energy sectors,” he said.
Davis, who founded Vision Blue in 2020 intending to invest in battery and green metals projects, said the CLP was an attractive opportunity. “The Central Lime Project is a high-quality asset with strong growth potential and a clear environmental, social, and governance (ESG) proposition. We are excited to work with Mayur Resources to bring this project to fruition and deliver value for all stakeholders,” he said.
The investment agreement between VBR and Mayur Resources has not been peer-reviewed or replicated by other investors. However, if the deal is finalized, it will mark a significant milestone for Papua New Guinea’s mining and manufacturing sector, as well as for Vision Blue’s portfolio of green projects.
Source: Mining Weekly
