5th Mar 2014 09:54
LONDON (Alliance News) - Dekeloil PLC Wednesday said it has successfully met the conditions regarding its tax exemption application in the Ivory Coast, meaning profits from its palm oil extraction mill there are now fully exempt from corporation tax for a 13 year period.
The palm oil producer said the tax exemption greatly enhances the economics of the mill after the site began crude palm oil production ahead of schedule in February.
The company said that, with effect from January 1, profits at the mill receive a 100% corporation tax exemption for 13 years, with the exemption falling to 50% in 2027, and to 25% in 2028.
The 60 tonnes per hour, 70,000 tonnes per year crude palm oil extraction mill is an integral part of Dekeloil's strategy to build a major, asset-backed West African palm oil company.
Dekeloil is currently increasing production capability at the mill in time for peak harvesting season, which is due to commence in March.
The company expects the mill to process a minimum of 150,000 tons of fruits and produce a minimum of 35,000 tons of crude palm oil in 2014, before looking to increase palm oil production in 2015 and beyond towards its full capacity of 70,000 tonnes per annum.
Dekeloil shares were down 10% to 1.53 pence Wednesday morning, after jumping to 1.84 pence in early trading.
By Tom McIvor; [email protected]; @TomMcIvor1
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