Mayur Resources Ltd (ASX:MRL) is encouraged by letters of support from customers in Papua New Guinea (PNG) and Australia, including blue-chip end users and traders.
These are for up to 266,000 tonnes per annum (tpa) of quicklime and hydrated lime products from the company’s Central Cement and Lime (CCL) Project near Port Moresby in PNG.
In addition, the company has also received a formal expression of interest to supply up to 700,000 tpa of high-grade limestone to a large end-user in the Pacific region.
The company is also continuing other discussions, in PNG and Australia, for further large volumes of lime products and should these also convert to letters of support the company will update the market accordingly.
Mayur is now working towards converting this support into binding sales agreements.
“Recognises CCL value proposition”
Mayur’s Lime and Cement business chief operating officer Trent Alexander said industry participants throughout the Australasia region recognised CCL’s value proposition.
He said: “Mayur’s CCL Project offers a large, high-quality limestone resource and an advantageous coastal location enabling the production of competitively priced products.
“This is a clear indication of market demand in the region where customers are actively seeking new sources of superior lime products to diversify their supply chains.
“We see further future demand for lime products being driven by growth in various sectors including gold and battery metals processing, water treatment and other environmental applications.”
Phase2 of CCL Project
CCL Project, on the coast 25 kilometres northwest of Port Moresby, is a quicklime and clinker/cement manufacturing facility.
The letters of support received for 266,000 tpa represents around 67% of the total 400,000 tpa of quicklime capacity planned for phase 1 of the CCL Project.
A phase 1 definitive feasibility study (DFS) is being undertaken to double the 200,000 tpa of quicklime capacity contained in the original CCL project DFS.
Alexander said Mayur’s strategy of prioritising the delivery of the quarry and quicklime plant as phase 1 of the CCL Project was being validated as the company sought to finalise the other aspects of this nation-building project for PNG.
He said: “In addition to the lime products, Mayur is continuing offtake discussions with customers for clinker and cement from Phase 2 of the CCL Project.”