Equatorial Palm Oil plc Commissioning of Palm Oil Mill (1474C)
27 September 2018 - 6:12PM
UK Regulatory
TIDMPAL
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."
- END -
For further information, please visit www.epoil.co.uk or
contact:
Equatorial Palm Oil plc +44 (0) 20 7016
Geoffrey Brown (Executive Director) 9885
Strand Hanson Limited (Nominated Adviser) +44 (0) 20 7409
James Harris / James Bellman 3494
Mirabaud Securities Limited (Broker) +44 (0) 20 7484
Peter Krens 3510
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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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