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M.P. Evans Group PLC
M.P. Evans Group PLC (incorporated in England & Wales; formerly Rowe Evans Investments PLC), 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 not only for its traditional use as a food but 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 the end of December 2008, approximately 2,000 hectares have been cleared and planted. In addition, a local smallholders' co-operative will own some 4,000 hectares of oil palms which will be developed and managed by GPL.
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 highly suitable for oil-palm cultivation in terms of soil conditions, terrain and climate. As part of the agreement a smallholders' co-operative, comprising approximately 6,000 hectares, will be developed in the vicinity of the project and will be managed by the Group. At the end of December 2008, 5,000 hectares had been planted with a further 2,000 hectares cleared in readiness for planting.
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.
In addition, the Group owns 40% of Bertam Properties Sdn. Berhad which, in turn, owns the remainder of the old Bertam Estate (560 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 well 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 6 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. Part of the aggregation is in the process of being developed in terms of water management and pasture improvement. 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, to help employees build on skill levels and to extend their education and qualifications.
* 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.
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12 May 2009