Pacific Lime and Cement advances Papua New Guinea port expansion plans
Pacific Lime and Cement Limited (ASX: PLA) has secured commitments for an A$50 million equity placement and signed a non-binding financing term sheet with the United States International Development Finance Corporation (DFC), supporting the development of an integrated industrial and port precinct in Papua New Guinea.
The announcement, dated November 9, 2026, outlines the company’s plans to accelerate the expansion of its international port facilities at Kido/Rearea, alongside associated cement, lime and industrial developments. Pacific Lime and Cement is targeting a final investment decision on the port expansion during the first quarter of 2027, while capital cost estimates and funding arrangements are being finalised.
The proposed development includes an expanded international port with nine berths, forming part of a wider Special Economic Zone (SEZ) covering approximately 4,500 hectares of land held under registered long-term tenure. The industrial precinct is intended to accommodate manufacturing, logistics and other commercial activities, with the company’s lime and cement operations serving as anchor tenants.
Capital raising supports port and industrial development
Pacific Lime and Cement has received firm commitments from institutional and other eligible investors for an A$50 million placement before costs. Of the total proceeds, A$27 million has been allocated to SEZ precinct and port expansion development, including engineering and design activities, tenant engagement, strategic partnerships and work required ahead of final investment decisions.
A further A$10 million is earmarked for early works and pre-investment activities associated with the Central Cement Project. The remaining proceeds will cover corporate expenditure, financing-related activities, working capital and transaction costs.
The company is also progressing discussions with potential industrial tenants and strategic partners, with initial binding tenant agreements targeted for the fourth quarter of 2026.
Alongside the equity placement, Pacific Lime and Cement has executed a non-binding term sheet with DFC for a proposed US$15 million senior unsecured convertible note with an eight-year maturity.
The proposed financing would support pre-development activities across the company’s lime, cement and international port projects, including environmental and social impact assessments, engineering and project preparation.
Under the indicative arrangements, DFC would receive a right of first refusal over certain future project financing opportunities associated with the industrial platform. However, the proposed convertible note remains subject to due diligence, regulatory requirements, internal approvals and definitive documentation.
Pacific Lime and Cement has indicated that potential future project-level debt financing requirements across the broader industrial platform could reach US$400 million. This estimate remains indicative and does not represent a financing commitment from DFC.
Port expansion linked to wider industrial strategy
The Kido/Rearea development is intended to combine port infrastructure with industrial production and logistics facilities within a designated Special Economic Zone.
In addition to the proposed nine-berth international port, the company’s plans include a regional strategic fuel reserve, for which expressions of interest are being sought, and a 2,330-lot land subdivision.
These developments are intended to support the establishment of a broader industrial precinct capable of accommodating additional businesses and investment partners.
The company is simultaneously advancing its Central Lime Project, with initial lime production targeted between late March and the second quarter of 2027. Pre-construction and early works for the Central Cement Project are also scheduled to begin during the current quarter, ahead of a targeted final investment decision in early 2027.
Paul Mulder, Managing Director of Pacific Lime and Cement, said the company remained focused on progressing its existing construction programme while developing the wider industrial platform.
The proposed port expansion has not yet reached a final investment decision, and the company has not announced a confirmed construction timetable or commissioning date for the expanded facility.
Pacific Lime and Cement will continue working with DFC on the proposed financing arrangements while progressing engineering, commercial agreements and investment preparations for its port and industrial developments.
