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IJM Plantations to boost oil palm estates in Indonesia


28 August 2007 General News
IJM Plantations to boost oil palm estates in Indonesia-IJM Plantations to boost oil palm estates in Indonesia
The plantation arm of IJM Corp Bhd, a construction and property group, wants to enlarge its estates to 40,000ha and plant more oil palm trees. It now owns 32,000ha oil palm estates in east Kalimantan, Indonesia.

IJM managing director and chief executive officer Velayuthan Tan Kim Song said the company already has a 4,000ha oil palm nursery which it expects to start producing by the first quarter of next year.

"Indonesia is a good place to expand due to better yields, cheap labour, good logistics, abundant rainfall and good land terrain and close to our home operations in Sabah.

"We would like to acquire new oil palm land in Sabah but there's none available ... prime oil palm land is already scarce," Tan said after the company's annual general meeting in Selangor yesterday.

IJM Plantations is one of the country's smallest planters that is strong in Sabah with almost 30,000ha of estates.

Tan said future prospects for the company look good as crude palm oil (CPO) prices are expected to hover between RM2,000 and RM2,200 a tonne in 2008 due to flood problems in Europe and the US as well as crop failures in South America.

On its plan to build a palm oil-based biodiesel plant, Tan said the plan is still on despite concerns of high CPO prices at the moment. CPO is the feedstock to make biodiesel.

"We look at investment in the long term and biodiesel is still a favourable business to go in," said Tan.

He said the 90,000-tonne-a-year biodiesel plant in Sabah is built on a modular basis, of which the initial 30,000 tonnes will be operational by the second half of 2008. It will be fully operational by 2009.

Tan said IJM Plantations is also keeping its options open on merger and acquisition initiatives.

He added that the company has not set any dividend policy and will pay them out accordingly. It paid a dividend of nine and seven per cent (less 28 per cent tax) in 2006 and 2005 respectively
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MG Biogreen plams 10 palm waste management plants By Goh Thean Eu This email address is being protected from spambots. You need JavaScript enabled to view it.
August 28 2007
FERTILISER maker MG Biogreen Sdn Bhd, an associate company of Samling Group via Glenealy Plantations (Malaya) Bhd, plans to build 10 palm waste management plants over the next three years, as palm oil mills become more environmentally conscious and demand for carbon credits grows.
Each waste management plant will cost about US$2 million (RM6.94 million), and the funding for the construction will come from internal as well as external funds. Total cost of the project is yet to be determined, as each plant may have different equity participation.

"We are currently in talks with a few parties, mainly palm oil mills in Malaysia and Indonesia, to build these plants," said MG Biogreen senior vice-president Dennis Lau.

He was speaking to reporters after the signing of an Emission Reduction Purchasing Agreement (Erpa) with Japan's Kansai Electric Power Co Inc.

The agreement allows MG Biogreen to sell up to 400,000 carbon credits generated by its palm oil waste composting plant in Lahad Datu, Sabah, until the end of 2012.

Lau expects the sale of carbon credits to contribute an annual revenue of over RM1 million.

"We are expecting to generate much more carbon credits once the other waste management plants are built," Lau added.

Carbon credits are measured in units of certified emission reductions, with each CER equivalent to one tonne of carbon dioxide reduction. The more carbon dioxide reduction the entity can register, the more carbon credits the entity will have.

These carbon credits can then be sold to companies or countries which exceeded its carbon dioxide emission quotas.

Also present at the signing ceremony were Kansai Electric's office of environment matters chief manager Masahiro Izumi, carbon asset management company KYOTOenergy Pte Ltd chief executive officer Michel Buron and emission brokerage firm TFS Energy's Jasmine Haneef.

"This is our second ERPA negotiated for a Malaysian company in the last three months," said Buron.

"As carbon asset manager, we have an unique approach in positioning ourselves on the seller's side to optimise revenues from its carbon asset, by tailoring solutions to the seller's financing needs and risk profile," he added.

In less than a year from its entry into the Malaysian market, KYOTOenergy has successfully negotiated and transacted over 600,000 carbon credits. It aims to transact two million carbon credits per year by 2012.   ------------------------------------------------------------------------------------- LATEST NEWS   Sarawak Plantation to expand palm oil acreage in Kalimantan  
August 28 2007
SARAWAK PLANTATION TO BUY LAND IN KALIMANTAN TO EXPAND PALM OIL ACREAGE
SARAWAK Plantation Bhd, a main board plantation company, plans to secure between 30,000 and 50,000 hectares in Kalimantan, Indonesia, in the next three years to expand its palm oil acreage.

The company, which has about 27,000ha, is already in talks with the Indonesian government.

"We will identify more land outside and inside Sarawak to expand our palm oil plantations," group managing director, Mohamad Bolhair Reduan, told reporters after the company's listing on Bursa Malaysia today.

Mohamad Bolhair said the identified land in Kalimantan was suitable for palm oil plantations.

Sarawak Plantation is mainly involved in developing, cultivating and managing oil palm plantation on a large scale and milling of fresh fruit bunches.

The company's shares opened at RM3.40 for a premium of 40 sen over its offer price of RM3.00 with 6,913 lots traded. It eased to RM3.14 after more than an hour of trade.

"We hit RM3.40 at the opening bell and it then consolidated. I think it is a good start. We are not worried about the immediate term but more concern about the long-term development of the price," he said.

The company was incorporated on October 28, 1997 as the vehicle company for the privatisation of Sarawak Land Development Board's assets.

Upon listing, the Sarawak State Government owns 38 per cent in the company through State Financial Secretary Inc, Yayasan Sarawak, Yayasan Budaya Melayu Sarawak and Dayak Cultural Foundation.

Another substantial shareholder is Cermat Ceria Sdn Bhd, which owns 37 per cent.

The company registered RM142 million in revenue and RM63 million in net profit last year. - Bernama

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