Pacific Unison may fully fund OBP’s magnetite plant with up to $11.2m. Credit: Mayur Resources.

Mayur Iron PNG, a subsidiary of sand mining company Mayur Resources, has finalised agreements with Pacific Unison Holdings for the construction and operation of the Orokolo Bay Industrial Sands Project (OBP) in Papua New Guinea’s Gulf Province.

The agreements follow a term sheet signed in December 2024 and mark a step towards production, with a focus on magnetite output.

Pacific Unison has committed up to $11.2m to potentially fully fund the construction and commissioning of the magnetite-only plant at the OBP.

Mayur retains full equity ownership of the OBP and half of all future profits, while Pacific Unison will manage the funding, construction and development.

Pacific Unison will be granted a mining services contract for the OBP upon the successful completion of the construction works.

Furthermore, Mayur Iron PNG will create a subsidiary under a sales and marketing agreement to handle OBP output sales and marketing, with Pacific Unison Holdings having the option to own up to 49% and similar management rights.

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The OBP, located within Mining Lease 541 and Exploration Licence 2305, is a key part of Mayur’s industrial sands portfolio and is fully permitted, with offshore equipment construction already in progress.

The OBP will become a producing asset after more than ten years of planning. Construction and procurement activities, funded by Pacific Unison, have already begun.

Production is expected to commence in the fourth quarter of 2025, with an annual target of 500,000 tonnes (t) of magnetite.

Mayur Resources managing director Paul Mulder said: “Identifying and securing the right long-term partner has taken some time. However, via the execution of these definitive agreements, we feel confident in the rapid development of the Orokolo Bay Project up to a nameplate production capacity of 500,000t of Magnetite per annum.

“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.”

This partnership allows Mayur to concentrate on its Central Cement and Lime Project in Papua New Guinea.

It will also enable the company to advance its portfolio of high-grade titanium and vanadium mineral sands projects, which are also located in Papua New Guinea.

These projects, including Amazon Bay and Kiwai Island, contain critical minerals vital for industries such as aerospace, renewable energy and advanced manufacturing.