Mayur Resources (ASX:MRL) has secured up to US$11.2 million ($17.87 million) of funding from Pacific Unison Holdings for the construction and operation of the Orokolo Bay Industrial Sands Project in Papua New Guinea.
Under the definitive agreements with Pacific Unison, the funding is expected to fully fund construction and commissioning of the project’s magnetite-only plant. Production is expected to begin in Q4 2025, with an annual output target of 500,000 tonnes of magnetite.
Mayur, which has a market capitalisation of $125.65 million, will retain full ownership of the project and 50% of all future projects, while Pacific Unison leads the required funding, construction, and development of the project.
The signing of these agreements and partner Pacific Unison already starting construction works has laid the foundation for Mayur advancing its broader portfolio of higher-grade titanium and vanadium mineral sands projects in Papua New Guinea.
Mayur says these projects, including Amazon Bay and Kiwai Island, are distinguished by their superior grades of critical minerals, which are essential for large-scale power generation and battery storage solutions.
Titanomagnetite, a key resource in these projects, offers advantages due to its dual composition of titanium and iron, making it highly sought after in industries such as aerospace, renewable energy, and advanced manufacturing.
Similarly, vanadium plays a critical role in vanadium redox flow batteries (VRFBs), which are increasingly being deployed for grid-scale energy storage due to their exceptional efficiency, scalability, and long lifespan. It also acts as a key ingredient to strengthen steel, the company adds.
Managing Director Paul Mulder says identifying and securing this long-term partner has taken some time, however, the company is confident in the rapid development of the Orokolo Bay Project.
“We feel the parties are well aligned in the commercial arrangements and have a shared vision for the project’s significant economic and community outcomes not only during production, but also in post-mining industries being established in the agriculture sector,” Mulder says.
“Bringing the Orokolo Bay Project into production, alongside our flagship Central Cement and Lime Project will generate attractive cashflows and importantly, compliments Mayur’s commitment to developing the building blocks within PNG — domestically produced and affordable downstream iron, cement/lime are the key pillars that will build PNG, and also displace imports and set up an export industry.”
The company notes this arrangement enables Mayur to focus its funding and resources on developing its flagship Central Cement and Lime Project in Papua New Guinea.
Governor of Gulf Province Chris Haieveta says Orokolo is a transformative project that will drive economic growth, creating over 130 direct and 450 indirect jobs.
“This marks a pivotal step for PNG having its own domestic iron ore resources for export, but to also consider development of PNG’s own small-scale iron and steel industry, being a critical ingredient to build our nation, alongside cement,” Haieveta says.
Mayur will continue engaging with local communities, having already established a construction camo, and manage all regulatory requirements to ensure the project’s execution runs smoothly.
Mayur Resources is focused on developing natural resources and renewable energy in Papua New Guinea. The company’s diversified project portfolio includes iron, industrial sands, lime, cement, battery minerals and renewable power generation.
Write to Aaliyah Rogan at Mining.com.au
Images: Mayur Resources
