Pacific Lime Secures PowerChina Financing for 2026 Magnetite Production
Pacific Lime and Cement Limited has secured a strategic partnership with global construction giant PowerChina to accelerate development of its Orokolo Bay Industrial Sands Project in Papua New Guinea, targeting production by 2026.
- PowerChina replaces Pacific Unison as development partner for Orokolo Bay Project
- PowerChina to finance, build, operate, and market the project with first cashflow expected in 2026
- Pacific Lime retains 100% ownership and 60% profit share of the project
- Project includes strong community engagement, local employment, and environmental safeguards
- Potential for expansion into critical minerals processing and downstream steelmaking
Strategic Partnership with a Global Powerhouse
Pacific Lime and Cement Limited (PLC) has announced a significant development in its decade-long journey to bring the Orokolo Bay Industrial Sands Project (OBP) in Papua New Guinea to fruition. The company has formed a strategic national partnership with PowerChina PNG Limited, a subsidiary of one of the world's largest construction and engineering conglomerates. This move replaces the former partner, Pacific Unison, and is set to inject the financial muscle, technical expertise, and operational capacity needed to accelerate the project’s timeline.
PowerChina, ranked 100th on the Fortune Global 500 list, brings a global footprint and a proven track record in delivering large-scale infrastructure projects across multiple continents. Their involvement is expected to fast-track the OBP’s construction and operational readiness, targeting first cashflow within the calendar year 2026.
Ownership, Profit Sharing, and Governance
Despite PowerChina’s operational role, PLC retains 100% ownership of the OBP and a majority 60% share of net profits. The agreement is structured to align incentives through a profit-sharing mechanism, ensuring both parties are committed to delivering the project on schedule and within budget. Importantly, the partnership includes open-book governance and joint oversight of project accounts, safeguarding transparency and community interests.
PLC continues to serve as the custodian of the project, maintaining stewardship over landowner relationships and statutory compliance. This governance framework prioritizes statutory payments, royalties, and landowner compensation, reflecting a commitment to sustainable and inclusive development in PNG’s Gulf Province.
Project Scale and Future Potential
The OBP has been under development for over ten years, supported by extensive technical studies and more than 2,000 drill holes. The initial phase focuses on producing 300,000 tonnes per annum of high-grade magnetite, with potential to scale up to 500,000 tonnes. Beyond magnetite, the project holds promising deposits of critical minerals such as titanium, vanadium, and zircon, which could support downstream processing and steelmaking operations in the future.
PowerChina’s financing and operational expertise are expected to unlock these opportunities, positioning the OBP as a key contributor to PNG’s industrial growth and resource diversification. The project also dovetails with PLC’s broader strategic portfolio, including its flagship Central Lime and Cement Projects, which aim to supply essential building materials domestically and regionally.
Community and Environmental Commitments
The partnership emphasizes strong community engagement, local employment, and environmental safeguards. Infrastructure upgrades and skills transfer programs are planned alongside construction, promising tangible benefits for Gulf and Central Province communities. The open governance model ensures that community and government interests remain front and center throughout the project lifecycle.
As the OBP advances towards commissioning and first shipments targeted for the latter half of 2026, PLC and PowerChina will continue collaborating closely with PNG authorities and landowners to meet health, safety, environmental, and social commitments.
Bottom Line?
With PowerChina’s backing, the Orokolo Bay Project is poised to become a cornerstone of PNG’s industrial future, but close attention will be needed on execution and community outcomes.
Questions in the middle?
- What are the detailed financial terms and risk-sharing arrangements between PLC and PowerChina?
- How will geopolitical considerations impact the partnership with a Chinese state-owned enterprise in PNG?
- What is the timeline and feasibility for expanding into critical mineral processing and steelmaking downstream?
