PNG Oil Palm

Finance
PNG Post Courier Thursday 23rd June, 2005

Palm oil company set to reach mark

NEW Britain Palm Oil Limited is on target to reach its six month
before tax profit target of K64.6 million, the company said yesterday.
But this will depend on shipping schedules not being disrupted.
In its report to the Port Moresby Stock Exchange, NBPOL said oil
production to May this year was 96,834 metric tonnes against a budget
of 94,908 metric tonnes. Crude palm oil was sold at $US441 (K1436) a
tonne against a budgeted price of $US435 (K1416).
This year, NBPOL said it would improve its overall communication
capabilities and an agreement had been reached with Telikom PNG under
which the telecommunication company would install satellite
communication links and maintain the equipment.
The Numundo oil mill would also increase production capacity from 60
to 80 tonnes a hour.
“Plans are underway to expand the kernel mill at Kumbango to
increase its production capacity from seven to 10 tonnes a hour,”
the company said.
“The oil refinery commissioned in 2003 had said its fractionation
plant expanded by 30 per cent a day with increased production being
achieved from this month.”
They said the mini estates under the lease-lease back arrangement with
the Government and landowners continued to expand and during the year,
Lolokuru on the Talasea Peninsula and Rigula on Malilimi would be
planted with an additional 2000ha of oil palm.
In the Solomon Islands, work had started with the construction of
housing, mill rehabilitation, poisoning of older palms and
investigations for further land acquisition.
NBPOL said in West New Britain Province, the company would continue to
expand its oil palm production capacity with an increase in oil palm
hectarage for both the estates and the small-holders.
“Over the next 10 years, it is envisaged that the company’s oil
palm production base could expand in West New Britain to approximately
80,000ha, producing 1.6 million tonnes of fresh fruit bunches,” it
said.
“This can not be done, however, unless the Government can progress
the construction of an all weather road link from Kimbe to
Silovuti.” NBPOL has been successful in obtaining approval to
maintain roads under the tax credit scheme and last year, the company
spent K2.6 million on roads.
“Despite this level of private sector support, the overall
provincial and national road infrastructure does not appear to be
given the priority it should get , especially considering the
Government emphasis on an export driven economy,” NBPOL said.