Olam International investing in NR project in Gabon

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Olam International investing in NR project in Gabon

Friday, March 23, 2012

5 Q$ x: N( c4 ?# }* o; J" R! _Singapore - Olam International and the Gabon government will together invest $183 million to set up a joint venture company to develop rubber plantations in the African nation. A total of 28,000 hectares of rubber plantations will be developed initially, while up to 22,000 hectares of additional plantations could be developed in the second phase, depending on the progress made in the first phase. Olam will hold an 80 percent stake in the joint venture, with the Gabon government holding 20 percent, it added. The project will be funded with 60 percent debt and 40 percent equity, which means Olam’s equity investment amounts to about $59 million. Planting is expected to start in 2013 and be completed by 2019, and the project is expected to generate about 62,000 tons of dry rubber a year at full maturity, the company said