Mayur Resources (ASX:MRL) receives clinker and cement offtake support in PNG

• Mayur Resources (MRL) receives offtake support for clinker and cement from the Central Cement Lime (CCL) Project in Papua New Guinea
• The letters of support for more than one million tonnes per annum of the materials come from customers in the Australian and Pacific markets
• This adds to previous indications of support for 400,000 tonnes per annum (tpa) of quicklime and hydrated lime, as well as 700,000tpa of limestone
• MRL says the regional market interest could enable faster development under phase two of the CCL project
• Shares are sitting steady at 19 cents at 2:19 pm AEST

Mayur Resources (MRL) has received offtake support for more than one million tonnes per annum (Mtpa) of clinker and cement from the Central Cement Lime (CCL) Project in Papua New Guinea.

The milestone adds to separate offtake support for 400,000 tonnes per annum (tpa) of the company’s quicklime and hydrated lime products from phase one, as well as 700,000tpa of limestone.

In a statement today MRL said the latest letters of support came from customers located in the Australian and Pacific markets, who were seeking long-term cement and clinker supplies.

Accordingly, the company said the news confirmed regional market interest in products from CCL, which would likely enable faster phase two development of the fully permitted project.

While these indications of interest remain subject to conditions precedent, MRL said such in-principle commitments could be crucial for investors and financiers in terms of propelling the ongoing development of the project.

Mayur Resources Managing Director Paul Mulder said customers saw the benefit of having cement and clinker manufacturing capability in far closer proximity to their operations versus other current South East Asian suppliers.

“This milestone is significant, given the current escalation in the cost of shipping and seaborne transportation; the projected demand for cement in the region; and mandatory requirements from an ESG perspective to significantly reduce direct and indirectly generated emissions and carbon footprints,” he said.

“Importantly with our senior executive team now back in PNG, we are seeing a significant increase in momentum with CCL and are now working on the ground to ensure the remaining cement and clinker capacity is reserved for key PNG domestic offtakers.”

Mayur’s lime and cement business’ chief operating officer Trent Alexander said the commitments from Australian and Pacific customers represented about 60 per cent of MRL’s intended capacity of 1.72Mtpa of clinker and cement products.

“This recent boost in commitments from other jurisdictions will allow the potential acceleration of phase two to be delivered sooner than anticipated,” he said.

“We are continuing discussions in PNG now as more potential customers signal their interest to secure significant volumes of low carbon and low alkali cementitious products,” Mr Alexander added.

Mayur Resources shares were sitting steady at 19 cents at 2:19 pm AEST.