Tuesday, August 17, 2010

Golden Agri

Golden Agri: may invest in private equity fund, Verdant Fund LLP, the sole shareholder of Golden Veroleum (Liberia), which is in process of being granted a concession by the Govt of Liberia (GoL) to develop ~220k ha of land for oil palm cultivation over next 20 yrs. Initial development will commence with 15k ha. This is inline with company’s strategy to expand its businesses, both upstream and downstream…

Separately, Malaysia's IOI Corp was reported to have stopped buying palm oil from PT SMART (main subsidiary of Golden Agri) 3-4 weeks ago, after an environmental audit last week gave a mixed evaluation. Given that IOI supplies the bulk of its crude palm oil to Europe, there is a lot of pressure to ensure that their supply chain is clean, and IOI is still undecided on whether to resume purchases...

Based on shipping records, IOI buys about 20-40k tonnes of CPO from SMART monthly. This compares with the 777k tons of CPO produced by Golden Agri in 1H10.

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