Commissioning of Palm Oil Mill

RNS Number : 1474C

Equatorial Palm Oil plc

27 September 2018

 

27 September 2018                                                                                      

EQUATORIAL PALM OIL plc

("EPO" or the "Company")

Commissioning of Palm Oil Mill

Equatorial Palm Oil plc (AIM: PAL), the AIM listed palm oil development and production company with operations in Liberia, West Africa, is pleased to announce the commissioning of its palm oil mill and provide an update on operations.

Palm Oil Mill ("POM")

The POM at Palm Bay estate has now been commissioned and is producing crude palm oil ("CPO") and palm kernels, which are being stored on site awaiting shipment to customers. As announced on 6 March 2018, the POM is being constructed in a modular fashion, with two lines of 30 metric tonnes per hour ("mt/hr"). The first of these 30 mt/hr lines has now been completed and is in operation following completion of initial test production.

As set out in the announcement dated 14 May 2018, the POM will incorporate the latest advancements in mill technology, including a kernel crushing plant ("KCP") and a biogas plant. These are both due for completion in Q1 2019 and will both be the first of their kind in Liberia.

The resulting products from the KCP will be palm kernel oil ("PKO") and palm kernel cake ("PKC"). PKO can be sold for industrial uses in oleochemical applications and PKC is generally used as a high protein ingredient for animal feedstock. Until such time as the Company has sufficient quantities of PKC for export, it will be used as fuel for the boiler in the POM.

The biogas plant as a renewable energy source captures methane emitted from the POM effluent to generate electricity for use in the POM and surrounding office and residential buildings. As a result, the POM is considered to be a highly efficient mill, in that there is no waste or residue.

Several experts in the different operational elements of palm oil mills from Kuala Lumpur Kepong Berhad ("KLK") have been sent to Liberia on short term contracts to work as trainers and support our Liberian workforce in the POM. The first 30 mt/hr line of the POM is expected to process initially between 2,000mt and 2,500mt of fresh fruit bunches per month, however we expect this to increase in the coming months as more workers complete training and generate practical experience in using the mill and harvesting the fresh fruit bunches. Further update on production ramp up will be provided in due course.

Bulking Station and Export Facility

Development work has begun at the bulking station and export facility at the port of Buchanan, where EPO has leased approximately 4.5 acres of land that is in close proximity to the wharf from which vessels will load EPO's oil palm produce for onward shipment to its customers.

Initial land development work has completed and construction work on a 3,000 mt storage tank facility is in progress and completion to take place in Q1 2019 in line with proposed first shipments to customers. Also planned at this site is an office complex and storage facility.

Shipment of oil palm products at this facility is not expected to take place until Q1 2019, when sufficient quantities of CPO will be available for onward shipment via parcel tankers. The early volumes of CPO will be shipped to customers using flexibags. Flexibags sit inside shipping containers, each holding approximately 20 mt of CPO, and will be shipped out of the main port in Monrovia on conventional cargo ships.

Geoffrey Brown, Executive Director of EPO, commented:

"The commissioning of the new POM is a significant milestone for EPO and for the re-development of the palm oil industry in Liberia.

"This is the largest mill now operating in Liberia and, with the commissioning of the KCP and the biogas plant, will be the most advanced in mill technology.

"The commissioning of the mill shows our significant commitment to Liberia and its people as EPO enters this next exciting phase of growth."

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

Equatorial Palm Oil plc Geoffrey Brown (Executive Director)	[phone]
Strand Hanson Limited (Nominated Adviser) James Harris / James Bellman	[phone]
Mirabaud Securities Limited (Broker) Peter Krens	[phone]

Notes to editors:

Equatorial Palm Oil plc is an AIM listed crude palm oil developer and producer with palm oil estates in Liberia, West Africa.  The Company was founded in 2005 and is focused on becoming a global, sustainable producer of high quality palm oil to regional and international markets.

With a significant land position in Liberia through its operating subsidiary Liberian Palm Developments Limited ("LPD"), the Company is geographically well positioned to serve the international and regional markets and is committed to making a positive impact on the communities in which it operates through investment in local schools, health clinics, housing and infrastructure. 

The Company's largest shareholder and 50:50 joint venture partner in LPD is KLK. KLK is one of the largest palm oil producers in the world and the Company will greatly benefit from their many years of expertise in oil palm development.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014.

 

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