The Governor of Central Province has condemned what she describes as an “unlawful and procedurally flawed” move by Papua New Guinea’s Special Economic Zone Authority (SEZA) to cancel the licence for the Central Cement & Lime Project in Kido and Rearea.
Framing the development as both a national and provincial priority, Governor Rufina Peter said the project promises equity ownership, infrastructure investment, employment and commercial opportunities for more than 12,000 landowners. It is set to become PNG’s first fully integrated quicklime and cement operation, supporting downstream building materials industries and strengthening the country’s domestic construction capacity.
According to the governor, SEZA had previously given written assurances confirming the project’s compliance. The licence sits alongside a binding Developer and Operator Agreement endorsed by the state, while independent legal advice from the State Solicitor confirmed the co-existence of the SEZ licence and the underlying mining lease (ML 526), both held by the same entity for the same purpose.
Despite these assurances, SEZA has issued a termination notice, allegedly without lawful process, stakeholder consultation, or adherence to its own legislation. Peter described this as “bureaucratic sabotage” that risks damaging investor confidence and undermining the rule of law.
“The Central Provincial Government will not tolerate political interference or regulatory overreach that jeopardises our people’s future,” she said. “We stand firmly behind this project, which offers a superior free-carry equity structure for landowners, greater certainty, and long-term economic dignity.”
The dispute highlights broader tensions in PNG’s investment environment, where strategic resource projects can become entangled in institutional rivalries and governance gaps. For Central Province, the governor argues, the stakes extend well beyond one project — to the credibility of the regulatory system itself.