Community Memorandum of Understanding Concluded

RNS Number : 3924X

Equatorial Palm Oil plc

05 May 2016

 

5 May 2016

EQUATORIAL PALM OIL plc

("EPO" or the "Company")

Community Memorandum of Understanding Concluded

Equatorial Palm Oil plc (AIM:PAL), the AIM listed palm oil development and production company with operations in Liberia, West Africa today announces that, following a formal consultation process, its Liberian subsidiary ("EPO Liberia") has signed a Memorandum of Understanding ("MOU") with designated community leaders over four key areas on Palm Bay estate to allow development of its oil palm activities.

The MOU was signed between EPO Liberia, Community Elders, Leaders and Residents of Tarlo Town, Blayah Town, Nuhn Town and Qlakpojelay (the "Community") and have come to a joint resolution with regards to the planned development of these areas on Palm Bay estate. A detailed list of signatories which demonstrate an accurate cross section of the Community areas have signed the MOU, including some of the communities not presently in favour of development. 

The signing ceremony, which was witnessed by several local and international press organisations, follows a process whereby EPO Liberia and the Community Elders ("the Parties") have jointly mapped the areas which can and cannot be developed for oil palm. This joint mapping exercise was inclusive of the consenting and non-consenting communities of the Phase 1 development at Palm Bay and was witnessed by the District Commissioner of District #4 of Grand Bassa County.

The Company is pleased to fully disclose the full detail of the agreement which is as follows:

·       The Company will not develop or plant oil palm on the priority land areas where the Community does not want the Company to develop its oil palm plantation.

·       A map presented as Annex 1 to the MOU illustrates the priority land area where the Community does not want the Company to develop its oil palm plantation.

·       The Company will proceed with its land development in areas ceded by Consented communities in the Phase 1 boundary as guided by its Sustainability Policy.

·       The Company will only develop the remainder of the concession land outside of the Phase 1 boundary with adherence to the principles of FPIC ("free, prior and informed consent").

·       The Company is allowed to conduct its FPIC processes within the concession land and will respect the decision of all communities.

EPO's General Manager - Commercial, Sandy Barblett commented: 

"The agreement with local communities follows a substantive process between all parties to actively conclude a pathway forward for sustainable development of our oil palm operations. The MOU with the communities at Palm Bay estate forms the background to allow us to move forward in creating a new palm oil industry in Liberia that conforms to the local community's needs and international best practice standards.

"I believe this MOU shows the tangible benefits of the work EPO has undertaken over the last 2 years to actively engage with all stakeholders and to consider all interests relating to oil palm development on our estates."

EPO's progress on CSR and sustainability can be monitored via the Company's dedicated microsite, which can be found at: www.csr21.org/company/equatorial-palm-oil

Contacts:

Sandy Barblett, EPO [e-mail]
Laurence Read [e-mail]
Strand Hanson Limited (Nominated Adviser) James Harris / James Bellman	[phone]

 

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