Lime-cement project arouses interest from lenders – Mayur
In an update to the Market Update Report last month, Mayur Resources Limited announced that its central cement and lime project in Central Province has taken a further step towards development, the interests of lenders being manifested globally.
Together with the principal debt arranger, KPMG Corporate Finance is receiving letters of interest from a number of lenders wishing to participate in the debt financing of the US $ 350 million project.
KPMG approached a variety of debt providers around the world, including commercial banks and export credit agencies related to engineering, procurement and construction providers for the 100% Mayur-owned project. .
The project has a target annual production of 1.65 Mt of cement / clinker and 200,000 t of quicklime for the supply of PNG and Australia.
A process of raising capital for the phased project is also being implemented jointly by KPMG and Morgans Financial alongside the debt financing.
Mayur said step 1 (investor identification and engagement) is now complete and step 2 of the bidding process is underway, with Mayur currently in dialogue with a number of
He added that more updates will be available on the commercial nature of the talks.
Mayur chief executive Paul Mulder said he was very encouraged to see the high level of international interest in the company’s flagship project.
âThe main appeal of the project is that it provides exposure to a low cost, long life, vertically integrated Level 1 operation of clinker, cement and quicklime in a growing economy on the doorstep of Asia, âMulder said.
âIt not only serves PNG’s future cement and lime needs, but also takes advantage of the cyclical and structural changes that are well underway in the Australian cement industry, which is now characterized by aging cement plants, rising costs and the growing shift to imports of clinker and cement. “