Installation of Commercial Pa

RNS Number : 0968Y

Equatorial Palm Oil plc

16 December 2010

 



16 December 2010

Equatorial Palm Oil

("EPO" or "Company")

Installation of Liberia's Only Commercial Palm Oil Mill

Equatorial Palm Oil plc (AIM: EPO) the Liberia, West African focussed sustainable oil palm plantation developer, is pleased announce that the installation of the new oil mill (the "Mill") for the Palm Bay Plantation ("Palm Bay"), located 160km south east of Monrovia, is proceeding on schedule.

The Mill will be Liberia's only commercial palm oil processing mill following the successful commissioning by the end of December 2010. The Mill has been constructed on site by Modipalm Engineering Sdn. Bhd. ('Modipalm'), a leading Malaysian manufacturer of palm oil mills. Modipalm's engineers are currently carrying out production test runs on site and it is expected that commercial production of crude palm oil ("CPO") will commence in January 2011. The engineering team will remain on site to train EPO mill operators to ensure that production of CPO is optimised. 

The Mill will have a throughput of five tonnes of fresh fruit bunches per hour and is expected to produce approximately one tonne of CPO per hour once commercial production is established. CPO will be produced from existing rehabilitated areas owned by EPO, which holds a land position of circa 34,398 hectares at Palm Bay. The Mill will provide training and educational facilities for future crude oil mills that EPO is planning to build over the next five years in Liberia.

EPO has also agreed that if additional capacity is available, the Mill will produce CPO from fresh fruit bunches bought from out growers and small farm holders in the region. It is expected that the CPO produced will be sold domestically within Liberia.

Michael Frayne, Chairman of Equatorial Palm Oil, commented:

"We are extremely pleased to have the Mill built and in operation, having worked closely with Modipalm's specialist engineering team. We look forward to moving into commercial production in January 2011 and operating the only commercial palm oil mill in Liberia. EPO remains focused on becoming the leading CPO in West Africa and we will keep all our stakeholders fully informed of further developments."

Enquiries:

Equatorial Palm Oil plc Company Michael Frayne, Chairman	[phone]
Shore Capital & Corporate Ltd. NOMAD and Joint Broker Pascal Keane Edward Mansfield	[phone]
Mirabaud Securities LLP Broker Peter Krens	[phone]
Pelham Bell Pottinger Financial  / Corporate PR Klara Kaczmarek Charles Vivian	[phone] [phone]

About Equatorial Palm Oil

EPO's objective is to become a producer of sustainable, low-cost CPO and 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.

 

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