First revenues from the project are expected in the first half of next year. Credit: Banana Republic images/Shutterstock.com.

Vision Blue Resources has signed an investment agreement with Mayur Resources to invest $40m (£32.2m) for a 49% stake in its Central Lime Project (CLP) in Papua New Guinea (PNG).

The investment from Vision Blue will meet CLP’s equity funding to complete project development and construction and begin commercial production.

With equity funding now in place, Mayur and Vision Blue are working to secure between $70m and $90m in debt financing.

This investment agreement follows a term sheet agreement signed by the two companies in August 2023.

The CLP project is the first stage of a vertically integrated manufacturing facility, which is claimed to meet 100% of the country’s raw lime, lime, hydrated lime and other building material needs.

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It will create a new manufacturing industry that can replace imports into the country while building its ability to export into nearby markets in Australia and in the Asia-Pacific region.

The project will include a co-located quarry, a plant site and a deep draft wharf. These will offer scalable production of high-grade limestone, aggregates and lime products at low operating costs.

It is also said to be one of Asia-Pacific’s first carbon-neutral projects and aims to service critical minerals and battery metals processing sectors.

“We are thrilled to partner with Vision Blue on the Central Lime project. Vision Blue recognises the pivotal role the Central Lime project can play in meeting the escalating demand for lime across various environmental and renewable energy sectors,” said Mayur managing director Paul Mulder.

“Their proposed investment is a testament to the value and potential of this project both from a commercial perspective and for the immense benefits it will bring to local landowners and the PNG domestic economy.

“The enhancement of living standards and benefits for local landowners remain at the forefront of our mission. We look forward to continuing our relationship with the team at Vision Blue and are confident in the mutual success this partnership will bring.”

Completion of the planned investment is subject to clearances from PNG Government bodies.

First revenues from the project are expected in the first half of next year. The annual stage one earnings before interest, taxes, depreciation and amortisation (EBITDA) are forecast to be more than $25m along with over $770m in revenue over a 30-year project life.