LONDON (ShareCast) - West African palm oil producer DekelOil has reported that construction of a crude palm oil extraction mill has commenced in the Côte d'Ivoire.

The company reported that all equipment relating to the 60 tonnes per hour (tphr) crude palm oil extraction mill had left Abidjan port and said that installation of the mill by a team from Modipalm Engineering SDN BHD, a Malaysian engineering company, had commenced and remained on schedule for completion by the end of this year.

Under the terms of the turn-key contract DekelOil said that Modipalm assumed responsibility for the construction of the mill, with DekelOil providing supervisory support.

Modipalm is expected to deliver the mill to DekelOil once it becomes operational.

With a capacity to produce 70,000 tonnes per annum and with fruit sourced from 27,000 hectares of mature estates secured via service agreements with local smallholders and cooperatives, the mill is to be one of West Africa's largest once it becomes operational at the end of this year, DekelOil added.

Lincoln Moore, Executive Director at Dekeloil, said: "With the mill safely on site and the Modipalm team commencing its construction and installation, we are now one step closer to generating revenues from CPO [Crude Palm Oil] production."

DekelOil’s share price was up 2.44% to 1.05p at 09:14 on Tuesday.

MF

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