PT Sinar Mas Agro Resources & Technology Tbk (SMAR.JK), an Indonesian subsidiary of Golden Agri-Resources Ltd. (E5H.SG), is in an initial stage of talks with Unilever PLC (UL, UN, ULVR.LN) on resuming palm oil sales to the consumer goods giant.

"We are in an initial stage of discussion with Unilever to resume business," Smart President Director Daud Dharsono said in a statement late Wednesday. He also said the company will collaborate with stakeholders on producing "sustainable" palm oil.

Unilever and Nestle SA (NESN.VX) had ceased buying palm oil from Smart due to alleged draining of peat lands and violations of environmental laws. Golden Agri and Smart have subsequently taken steps to meet environmental requirements set by its clients, including joining the Roundtable on Sustainable Palm Oil.

Unilever wasn't immediately available for comment.

Earlier this month, Smart said Nestle had resumed palm oil purchases after the Swiss food company was satisfied that the Indonesian firm and its Singapore-listed parent had made progress in meeting Nestle's sourcing guidelines.

-By Chun Han Wong, Dow Jones Newswires; +65 64154 160; chunhan.wong@dowjones.com