|
M.P. Evans Group PLC
M.P. Evans Group PLC (incorporated in England & Wales), is listed on AIM. The Group's assets consist of oil-palm plantations (both majority and minority held) in Indonesia and Malaysia, the latter with real-estate development value, and beef-cattle interests in Australia.
It is the board's intention to increase its total Indonesian areas under oil palm to some 70,000 hectares of environmentally-sustainable oil palm. This, in turn, will lead to an increase in the Group's equivalent annual palm oil production from 60,000 tonnes to around 400,000 tonnes. Demand for palm oil is strong in its traditional use as a food, and additionally as a feedstock for the bio-fuels industry.
In addition to the expansion in Indonesia, the board's policy is to expand the Group's Australian beef-cattle interests so that, ultimately, approximately 70% of the Group's assets will be in Indonesian oil-palm plantations and 30% in Australian beef cattle. The Group's activities, by country, are as follows:-
Indonesia
Existing mature plantations
The Group has a majority interest in 10,000 hectares of oil-palm plantations in Sumatra. These consist of some 7,400 hectares on three estates which are in close proximity, Pangkatan, Bilah and Sennah Estates, in the Labuhan Batu district of North Sumatra. In addition, a 40-tonne-per-hour crude palm oil processing mill was commissioned in 2005 on Pangkatan Estate. Simpang Kiri Estate (2,600 hectares) is located in the south-east corner of the province of Aceh. The Group also has a substantial interest in two other projects in Sumatra - PT Agro Muko (32%) and PT Kerasaan Indonesia (38%). The former is a 23,000-hectare project in the province of Bengkulu with 17,000 hectares of oil palm, two palm oil mills, 2,200 hectares of rubber and a crumb-rubber factory. The latter owns a 2,400-hectare oil-palm estate, Kerasaan, in North Sumatra.
New projects
Bangka Island
In 2005 the Group invested in a 90% share of an Indonesian company, PT Gunung Pelawan Lestari ("GPL"), which, it is planned, will develop 12,000 hectares of environmentally-suitable land into oil palm over the next three to four years. The other 10% of GPL is owned by an Indonesian businessman, Mr Karli Boenjamin. As at September 2009, approximately 2,800 hectares had been planted. It has recently been agreed that 680 hectares of the planted land will be sold, at cost, to the smallholder co-operative schemes. This does not affect the ultimate target that the smallholders' co-operatives will own some 4,000 hectares of oil palm. These will be developed and managed by GPL and the co-operatives' fruit will be processed by GPL's mill. The board believes that this will help to enhance local community relations and accelerate the rate at which land is released for development.
East Kalimantan
In 2006 agreements were signed with two Indonesian partners, Messrs. Halim Jawan and Sudihugeng Hardjojo, in relation to the Group's development of 24,000 hectares of land near Samarinda in East Kalimantan. The largely open land is deemed environmentally highly suitable for oil-palm cultivation in terms of soil conditions, terrain and climate. As part of the agreement smallholders' co-operatives, comprising approximately 6,000 hectares, will be developed in the vicinity of the project and will be managed by the Group. As with GPL the co-operatives' fruit will be processed by the Group's mills. As at September 2009, 8,300 hectares had been planted with a further 1,400 hectares cleared in readiness for planting for the Group's own areas. Of the planted area, 1,400 hectares have been allocated to the smallholder co-operative schemes.
Malaysia
Until recently, the Group owned six small oil-palm estates in Peninsular Malaysia, totalling around 3,750 hectares which possessed, in varying degrees, real-estate development potential. In line with the Group's strategy, five of these estates have now been sold for a total of approximately US$80 million with another US$27 million received in dividends and loan repayments from the 40%-owned Bertam Properties Sdn. Berhad. These primarily derive from property sales.
Bertam Properties Sdn. Berhad owns the remainder of the old Bertam Estate (555 hectares) which is currently being developed into housing, industrial and leisure facilities. The Group also owns 20% of Kennedy Burkill & Co. Berhad, a Malaysian plantation and property group, as well as a 30% share in Asia Green Environmental Sdn. Bhd., a company that has developed an environmentally-sustainable system of converting empty bunch and palm-oil mill effluent into compost.
It is estimated that the unsold portion of Malaysian assets and investments stands at over US$50 million.
Australia
The Group owns 34.37% of The North Australian Pastoral Company Pty Limited ("NAPCo"), one of the biggest cattle companies in Australia which owns some 5.8 million hectares of land in the Northern Territory and Queensland with a normal carrying capacity of some 200,000 head. In southern Queensland, the Group owns four adjoining cattle-fattening properties known collectively as "the Woodlands aggregation", comprising a total of 31,000 hectares. The aggregation is nearing the completion of a project to develop water management and improve pastures. The full benefits of these improvements will be a significant increase in cattle-carrying capacity.
Environmental and corporate social responsibility
* The Group is committed to producing environmentally-sustainable palm oil.
* The Group is a member of the Roundtable for Sustainable Palm Oil ("RSPO") whose wide variety of members covers interests from non-governmental organisations to supermarkets. The Group endorses the general principles adopted by the RSPO in relation to environmental, social and ethical practices. The Group has set in motion the process to obtain RSPO certification for its palm-oil production.
* The Group ensures that any new plantation development is undertaken only in open or lightly-timbered areas. By definition, these development areas will not be suitable habitats for orang-utans. Full environmental impact assessments are conducted on new project areas by internationally-recognised, independent environmental consultants.
* The Group has undertaken a scheme at Pangkatan palm-oil mill by which liquid-waste products are applied to empty bunches to create nutritious compost which is applied in the field reducing the requirement for inorganic fertilisers.
* The Group gives priority to the health and safety of its employees and those affected by its activities.
* The Group undertakes to train and motivate its workforce and to help employees build up their skill levels.
* In Indonesia, the Group provides, inter alia, medical care, free housing, clean water and sanitation to its workforce as well as kindergartens and school transport.
|
|
23 Sep 2009