Pacific Lime and Cement (ASX:PLA) said the project development agreement for the Central lime and Central cement projects was formally ratified by Papua New Guinea's National Executive Council, and executed by the Governor-General, as Head of State, according to a Friday Australian bourse filing.

The lime project is under construction, with an around 400,000 tonne-per-annum quicklime facility being built. Newmont (ASX:NEM) is contracted for around one-third of the nameplate capacity.

The development includes a 5,000 tonne-per-day clinker manufacturing facility, with around 1.65 million tonnes-per-annum cement grinding capacity.

The Papua New Guinea government will acquire up to an 18% stake in the Central lime project for $23.14 million, and up to a 30% stake in the cement project at the agreed net present value.

Its shares fell 2% in recent trading on Friday.