Delivery of palm oil processi

RNS Number : 4784Q

Equatorial Palm Oil plc

04 August 2010

 



Equatorial Palm Oil plc / Index: AIM / Epic: PAL / Sector: Food Producers

4 August 2010

Equatorial Palm Oil plc ('EPO' or 'the Company')

Delivery of palm oil processing mill

Equatorial Palm Oil plc, the AIM listed, Liberian focussed, sustainable oil palm plantation developer, is pleased to announce the Company's first palm oil processing mill has been delivered on schedule at EPO's Palm Bay Plantation ('Palm Bay').  The mill, which was manufactured by Modipalm Engineering Sdn. Bhd., a leading Malaysian manufacturer of palm oil mills, is being constructed over the next few months by a specialised team of engineers who will then remain on site to oversee an active training programme to ensure that production of Crude Palm Oil ('CPO') is optimised.  Production of CPO is targeted to commence in Q4 2010 and will provide early stage cashflow to assist in the development of the Company's circa. 169,000 hectare land position in Liberia.

Once fully functional, the mill will be able to process five tonnes of fresh fruit bunches per hour.  These bunches will be obtained from existing oil palms at Palm Bay, where reactivation of 3,000 hectares of plantation is underway, as well as from local out growers. 

EPO Chairman Michael Frayne said, "Delivery of our first, and currently Liberia's only commercial palm oil processing mill, marks another key milestone in EPO's development plans to become CPO producers by the end of 2010.  Revenue from this initial production will contribute to funding our development programme, which is already well underway, with batches of oil palm seeds now arriving each month at our nurseries to coincide with the planned planting schedule." 

* * ENDS * *

 For further information please visit www.epoil.co.uk, www.modipalm.com.my, or contact: 

Michael Frayne	Equatorial Palm Oil plc	Tel: [phone]
Peter Krens	Mirabaud Securities LLP	Tel: [phone]
Pascal Keane	Shore Capital & Corporate Limited	Tel: [phone]
Edward Mansfield	Shore Capital & Corporate Limited	Tel: [phone]
Hugo de Salis	St Brides Media & Finance Ltd	Tel: [phone]
Elisabeth Cowell	St Brides Media & Finance Ltd	Tel: [phone]

Notes to editors:

About Equatorial Palm Oil

EPO's objective is to become a producer of sustainable, low-cost CPO and to this end it has extensive operations located near the coast in Liberia, West Africa.  The Company's operational strategy is expected to be implemented through three core business activities: the rehabilitation of existing oil palm plantations; the development of new plantations; and the development of out-grower small holdings.  The Company has secured Government ratified Investment Agreements in Liberia for the investment, rehabilitation and participation by the Group over a sizeable acreage of existing oil palm plantations.  EPO's operations have already commenced at the Butaw Plantation and Palm Bay Plantation.

 

END

 

 

MSCQXLFBBVFFBBE