30th Mar 2009 13:00
BioEnergy Africa Ltd / Index: AIM / Epic: BAL / Sector: Renewable Energy
30 March 2009
BioEnergy Africa Ltd ('BioEnergy Africa' or 'the Company')
Operations Update, Restructuring & Director Changes
BioEnergy Africa Ltd, the AIM listed company formed to develop the production of ethanol from sugar cane projects in southern Africa, announces the following update on the Company including progress made at its Massingir Project ('Massingir') in Mozambique and a restructuring of the Board.
Development at Massingir is progressing and the Company remains committed to fulfilling the conditions set out in the initial DUAT granted by the Government of Mozambique. Considerable advances have been made in the period since the Company acquired Massingir, with site clearing, as part of the first phase of estate development, remaining a priority. By February, more than 800 hectares had been cleared of trees and shrubs, and some 170 hectares had been windrowed prior to planting.
In accordance with the Company's community responsibilities under the terms of the initial investment agreement with the Government of Mozambique, approximately 125 family drip systems have been implemented, with excellent results on the first vegetable harvests. This is seen as a training facility for involving local people in the wider irrigated community systems. Some 20 hectares of maize have been planted on irrigated land for the local community. A further 40 hectares is being planted in the coming weeks in addition to the Company providing further irrigated land for local villages, designed to enable the development of profitable agricultural activities for the local population. The Company has also acknowledged the requirements of the nomadic peoples who previously used the estate for grazing their livestock. Dipping and veterinary services will be provided on the borders of the project, which will not only provide invaluable services in this rural area, but could also be a potential future source of revenue for BioEnergy Africa.
In spite of the progress made, the current global economic climate and resultant reduced interest in non-carbon related fuel products has prompted a strategy review by the Company. The primary focus of this review is the reduction of overheads in order to preserve cash and the identification of where value can be created for shareholders. The ability for companies in this sector to raise finance for highly capital intensive projects has been greatly curtailed, a situation that the Board is well aware of. With this in mind, the Company is reviewing its development strategy to ensure the capital raised in August 2008 is preserved while at the same time ensuring that the obligations of the Company re the DUAT are achieved. In line with this, the employment of Nick Brooks and Jorge Neves has been terminated and they have ceased to be Directors of the Company. Izak Cornelis Holtzhausen, who has held the position of Development Director from the outset, and who has been involved in all aspects of the project including financing and on ground implementation over the last three years, is re-assuming control of the Massingir Project in its entirety. The Board would like to thank Nick and Jorge for their contribution and wishes them well in the future.
** ENDS **
For further information please visit www.bioenergy-ltd.com or contact:
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Phil Edmonds
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Bio Energy Africa Ltd
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Tel: 0854 108 6060
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Jonathan Wright
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Seymour Pierce Ltd
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Tel: 020 7107 8000
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Sarah Jacobs
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Seymour Pierce Ltd
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Tel: 020 7107 8000
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Hugo de Salis
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St Brides Media & Finance Ltd
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Tel: 020 7236 1177
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Susie Callear
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St Brides Media & Finance Ltd
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Tel: 020 7236 1177
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Notes
BioEnergy Africa Ltd is an AIM listed company formed to develop the production of ethanol from sugar cane projects in southern Africa. The Company's initial project is the 30,000 hectare Massingir Fuel Ethanol Project in Mozambique where it is targeting the initial production of 600,000 litres of ethanol a day rising to 1,200,000 litres of ethanol a day at full capacity. BioEnergy Africa has an experienced Board with established contacts in southern Africa and experience of introducing natural resources start-up companies to AIM.
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