Pacific Lime and Cement Limited (ASX: PLA) has signed a strategic partnership with PowerChina PNG Limited to finance, build and operate the Orokolo Bay Industrial (Magnetite) Sands Project in Papua New Guinea’s Gulf Province.
PowerChina joins Mayur Iron PNG Limited, PLC’s wholly owned subsidiary and project owner, as development partner at Orokolo Bay, replacing former partner Pacific Unison. Pacific Unison’s role under the Joint Cooperation Agreement was terminated, as previously announced on October 31, 2025.
PLC noted that PowerChina’s parent company is one of the world’s largest construction enterprises, delivering large-scale civil engineering and infrastructure projects globally and ranking around the 100th position in the 2025 Fortune Global 500 list.
“We are excited to welcome PowerChina to our Orokolo Bay Industrial Sands Project as a development partner. PowerChina subsidiaries and project offices span over four continents and are involved in engineering, procurement, and construction (EPC); power; renewables (wind, solar); and large-scale infrastructure such as ports and industrial parks. PowerChina’s experience, reputation and financial strength makes it a trusted partner for national infrastructure and industrial growth initiatives,” PLC managing director Paul Mulder said.
“Under this agreement, PowerChina, will provide development capital, with the company and its parent (PLC) maintaining 100% equity ownership of the Orokolo Bay Project. With profit share as the adopted remuneration mechanism, it aligns the parties to a clear delivery schedule that targets completion of construction and commencement of production in calendar year 2026. This strategic and critical partnership provides the development capital, capability and certainty needed to transform Orokolo Bay into a near-term, fully operational, revenue-generating asset.”
Financing, construction and operations targeting first cash flow in 2026
Under the new arrangements, PowerChina will fund, construct, operate and market product from the Orokolo Bay Project on an accelerated schedule, with a target of first cash flow in calendar year 2026 and first shipments in the latter part of the second half of that year. PLC will retain the majority of project profit over the life of the asset.
The Orokolo Bay Project, located within Mining Lease 541 and Exploration Licence 2305, has been advanced by the company for more than a decade. Work to date includes more than 2,000 drill holes and a suite of technical and development studies from initial concepts through to a Definitive Feasibility Study. This extensive technical base is expected to allow PowerChina to move directly into staged construction and operational readiness.
“The Orokolo Bay Project is underpinned by an extensive technical foundation of field programs and detailed studies on the resource and project development, from concept through to Definitive Feasibility. The work completed by PLC over this 10-year period means PowerChina will enter the project immediately, continuing with construction while preparing for operations," Mulder said.
“Importantly, PLC, as the long-term developer with PNG Landowners and PNG Government, remains the project owner and custodian of Orokolo Bay. Through magnetite production, shared value will be generated for the company, PowerChina, and its PNG landowner stakeholders. This is a model that protects the company and its parent (PLC’s) balance sheet, accelerates delivery, and positions the project to generate meaningful employment, community development and shared value in partnership with the government and people of PNG.
“The progress of the OBP creates the opportunity for subsequent development of our valuable critical mineral resources, including titanium vanadium and zircon. With PLC, PowerChina is an early mover in identifying the opportunity of these resources, which have the potential support downstream processing opportunities, including critical mineral extraction through an iron and steelmaking process.”
Initial development will focus on production of high-grade magnetite. The partners are also assessing options to process critical minerals contained in the deposit — including vanadium, titanium and zircon — and to pursue downstream opportunities in iron and steelmaking as the project matures.
Funding from PowerChina is expected to support an initial production capacity of about 300,000 tonnes per annum of high-grade magnetite, with scope to lift output to approximately 500,000 tonnes per annum under scenarios outlined in the previously released Definitive Feasibility Study. PowerChina will be responsible for working capital, operating costs, and sales and marketing.
Open-book governance model prioritises landowner and statutory payments
Mayur Iron PNG will continue to act as steward of local community and government interests, leading landowner engagement and statutory compliance. The agreement with PowerChina provides for open-book governance and joint oversight of project accounts, with statutory payments, royalties and landowner compensation ranking ahead of other recoveries in the project cash waterfall.
The Orokolo Bay development is expected to deliver local employment, participation in the supply chain and skills transfer, alongside planned infrastructure upgrades, environmental safeguards and community development programs for Gulf and Central Province communities.
Partnership complements PLC’s Central Lime and Central Cement strategy
The collaboration with PowerChina sits alongside PLC’s broader portfolio of “national building” assets, particularly its flagship Central Lime and Central Cement Projects.
Phase one of that program includes an existing wharf and quicklime kilns, while phase two contemplates development of an integrated cement plant to support domestic manufacture of key building materials in Papua New Guinea.
PLC said the relationship with PowerChina may also extend to co-development opportunities across its asset base where aligned with Papua New Guinea’s economic and social priorities.