Ebola and Operational Update

RNS Number : 0187W

Equatorial Palm Oil plc

04 November 2014

 



4 November 2014

EQUATORIAL PALM OIL plc

("EPO" or the "Company")

Ebola and Operational Update

Equatorial Palm Oil plc (AIM: PAL), the AIM listed palm oil development and production company with operations in Liberia, West Africa today updates the market with respect to the Ebola virus in Liberia and an operational update.

Ebola

There have been no instances of Ebola on or around our operations at Palm Bay and Butaw estates. We currently have over 1,500 employees in Liberia of whom 12 are expatriate staff. No expatriate employees have left the country because of Ebola nor have any indicated they wish to do so.

We have introduced a number of preventative and precautionary measures at all our sites in accordance with Government guidelines. We have established numerous hand sterilisation points and provided "Thermo Flash" thermometers to check the temperature of both our workers and visitors to our locations. Our clinics are all equipped with isolations gowns, gloves and face masks for use, if necessary, in screening patients. Furthermore, our health clinic staff provide outreach services to neighbouring villages to ensure that everyone in the vicinity of our concession areas fully understand the necessary procedures that must be followed to prevent both the introduction of the disease and the prevention of infection. Recently we have increased our alert level to include restrictions on non-essential domestic travel for our employees.

EPO has donated necessary medical equipment and supplies to the County Task Force in Grand Bassa, and Sinoe counties, where our concessions lie and also to the County Task Force of River Cess County. Furthermore our joint venture partner, Kuala Lumpur Kepong Berhad ("KLK"), from Malaysia has donated $110,000 together with other Malaysian oil palm corporates arranged by the Malaysian government for the purchase of rubber gloves, which is an essential item in the fight against the Ebola disease.

EPO has joined the Ebola Private Sector Mobilisation Group ("EPSMG") which comprises over 70 companies and 40 public bodies/NGOs with operations in or near Ebola countries. Like EPO, these companies have made long term commitments to these countries and their people and intend to honour these commitments. We have strong ties to the local communities that depend on our operations. Despite the challenging environment, we are continuing where possible with normal operations, with the health and safety of our employees being the absolute priority at all times.

We have enormous respect for the organisations and selfless individuals working to contain this outbreak and bring the epidemic to an end. We are in regular dialogue with the Liberian government, NGOs and other task forces involved in supporting their work.

Operations of Liberian Palm Developments Ltd ("LPD")

Our operations to date are continuing on as normalised basis as possible except that it is not easy to travel between places given the numerous check points where officials are checking for Ebola. We expect to plant up to 2,500 hectares of oil palm up to the end of calendar year 2014 over both of our estates, which, although lower than our target for the year as announced on 18 April 2014, will be a considerable effort given the Ebola challenges faced by our staff in Liberia.

The directors believe 2015 will be a transitional year for the Liberian operations as the Palm Bay estate will move from previously planted areas of oil palms to new expansion areas. LPD has committed to ensuring that it has free, prior and informed consent from the communities in which it operates before any development work is undertaken at these sites. Accordingly, the government inspectors from the Liberian Department of Agriculture will be involved in the process. At present that process understandably has been slowed down by the Ebola virus on the basis there are certain restrictions on the free movement of persons travelling in the country.

Geoffrey Brown, Executive Director of EPO (who is currently in Liberia), commented:

"Ebola is without doubt a horrific virus. But it is a virus that with the right understanding, precautions and processes in place should be avoidable and containable. We very much welcome the support of the international community to help countries such as Liberia and that gives EPO and its employee's great confidence.

"Our employees are our most significant asset and it is testament to their dedication that our operations at our estates continue as best we can. EPO is dedicated to supporting the Liberian government and the communities in which we operate in order to flight Ebola."

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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 / Andrew Emmott / James Bellman	[phone]
Mirabaud Securities LLP (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 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.

 

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