Operational Update

RNS Number : 6149I

Equatorial Palm Oil plc

27 March 2015

 



27 March 2015

EQUATORIAL PALM OIL plc

("EPO" or the "Company") 

Operational Update

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

Highlights

·      Commitment to land use study for determination of 'High Carbon Stock' forest

o  Study recommendations due Q4 2015

o  Replanting programme continues with land development deferred until end of the study

·      Proactive stance on Ebola continues and ensuring that complacency does not set in

·      CSR work and policy transparency increased with launch of EPO dedicated community relations microsite

High Carbon Stock ("HCS") Study

Alongside other major industry groups including Kuala Lumpur Kepong Berhad ("KLK") and Sime Darby Plantation, EPO as a subsidiary of KLK, is taking part in a global independent study focussing on responsible land usage by palm oil operators. 

Study conclusions are expected to provide clear parameters for the establishment of new plantations in non-arable areas. The key objectives of the study are to:

(i)    clearly define what constitutes a HCS forest; 

(ii)   provide practical guidance on how to delineate HCS forests on the ground; and

(iii)  establish thresholds for HCS that take account of regional socio-economic conditions and opportunities.

The HCS study is a key component of the Sustainable Palm Oil Manifesto (the "Manifesto"), which was signed by oil palm growers Sime Darby Plantation, IOI Corporation Berhad, Kuala Lumpur Kepong Berhad, Musim Mas Group and Asian Agri, as well as global palm oil trader Apical Group Ltd and global agribusiness group Cargill. The Manifesto includes a commitment to no deforestation, creating traceable and transparent supply chains and protecting peat areas, whilst ensuring economic and social benefits for the local people and communities where oil palm is grown.

A steering committee, independently co-chaired by founder director of 'Forum for the Future', Sir Jonathon Porritt, and former Chief Research Scientist from Australia's Commonwealth and Scientific and Industrial Research Organisation (CSIRO), Dr John Raison, has been established to oversee the HCS study. Final conclusions are expected to be published in Q4 2015.

As part of its commitment to the process, EPO will not develop any new areas of land during the period of the study. EPO still intends to plant 1,000 hectares before the end of September 2015. This land was previously planted with oil palm before the Liberian civil wars and cleared for replanting in 2014 although not yet planted due to the Ebola virus.

As a member of the Roundtable on Sustainable Palm Oil ("RSPO"), EPO is already preserving areas deemed to be of high conservation value under the RSPO principles and criteria.

Ebola

To date no instances of Ebola have occurred on or around our operations at Palm Bay and Butaw estates. EPO continues to communicate with Government of Liberia and major health NGO's in relation to the health crisis, in addition to taking a proactive role in addressing the Ebola outbreak. The Company has contributed medical supplies to key health agencies in Liberia and, locally, has engaged in information and education campaigns run from the two health clinics established at our sites.

EPO is mindful of the significant impact the Ebola virus has had throughout West Africa, with at least 10,000 people having died since the outbreak first began last year. Although there has been a significant reduction in those being infected with the virus, the biggest fear for governments and health organisation is one of complacency, and EPO is continuing to adhere to stringent preventative and precautionary measures at all our sites in accordance with guidelines set by the Government of Liberia in order to prevent both the introduction of the disease and the prevention of infection.

Corporate social responsibility ("CSR") transparency improved - Launch of dedicated community relations Micro Website

EPO is committed to ensuring economic and social benefits for the local people and communities in which we operate, respecting their right to give consent to proposed developments or conservation through the free, prior and informed consent process.

EPO has launched a dedicated micro website for its sustainability and CSR activities. The micro website link will be found on the home page of the EPO website (www.epoil.co.uk) and will allow users to keep abreast of EPO's commitment to sustainability and CSR. Relevant articles, photos and videos will be posted and updated, including information on EPO's reaction to the current Ebola crisis.

Through the EPO website the processes and procedures set down by the RSPO for the development of sustainable palm oil which are fully adhered to by the Company can also be viewed.

 

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

"EPO is committed to the HCS study that is being undertaken. The study will help to shed light both on the biophysical and socio-economic dimensions of what is a critical area of enquiry, taking a fully integrated approach in order to address the concerns of all stakeholders, including those of NGOs, local communities and governments.

"The instances of Ebola in Liberia have significantly diminished which is encouraging. However, the greatest fear is that complacency sets in and EPO leads the way in ensuring its processes and procedures for the combat of this deadly virus is rigorously enforced at all its locations."

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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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