DekelOil issue Côte d’Ivoire update

PUBLISHED: 05 Jan 2014 @ 17:54 | Comments (0) |

DekelOil (LSE:DKL), operator and 51% owner of an established, vertically integrated palm oil project in Côte d’Ivoire, has issued an update on its operations including excellent progress towards final commissioning of its 60 t/hr Crude Palm Oilextraction mill by Modipalm Engineering SDN BHD, the leading Malaysian engineering company.

The mill is on course to become fully operational and generate first revenues in February 2014, at which point it will become one of West Africa’s largest with a capacity to produce 70,000 tonnes per annum.

Highlights:

·The construction phase of the Mill is nearing completion and technical tests focussed on elements such as the reception and kernel crushing facility have been successfully tested

·Soft commissioning is on track to commence on 1 January 2014 before commercial operations commence on 15 February

·All Mill and logistic operational management and the majority of the operational teams are in place and undergoing training

·The first logistic collection point to provide effective and timely deliveries of fruits for processing is now operational

·Contract signed to transport fruit from the logistics collection point to the Mill.

·Planning with local cooperatives is advancing positively, focussed on ensuring adequate and efficient delivery of feedstock from 5,000 contracted local smallholders to the Mill

·Positive developments are in line with DekelOil’s strategy to build a major, asset-backed West African palm oil company

DekelOil Executive Director Lincoln Moore said, “2014 will be a transformational year for DekelOil as we focus on generating material revenues from CPO production during the peak harvesting season between March and June, following a thorough soft commissioning phase. Achieving this exciting milestone within a year of listing on AIM will set us apart from many of our peers within the junior palm oil market, and this announcement highlights the strong progress we continue to make with regards to the construction of the Mill and the implementation of our critical logistics plans.

“Further moves are in place with regards to negotiating off-take contracts and employing key personnel to oversee our operations, and we look forward to providing regular updates in the coming weeks as we unlock future value milestones and move towards becoming a leading, vertically integrated West African palm oil company.”

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