Perth-based biodiesel producer Mission Biofuels Ltd has announced the Malaysian Government has approved the company's application for a license to establish an additional 200,000 tonnes per annum biodiesel facility.
Perth-based biodiesel producer Mission Biofuels Ltd has announced the Malaysian Government has approved the company's application for a license to establish an additional 200,000 tonnes per annum biodiesel facility.
The facility is to be located adjacent to its current 100,000 tonnes per year capacity biodiesel plant at Kuantan Port in Malaysia.
The Malaysian Government has also informed the company that its application for 100 per cent pioneer tax status, in relation to this new facility, is under consideration.
The pioneer status, if granted, will exempt all statutory income generated by the additional facility from payment of Malaysian income tax for a period of 5 years.
Mission Biofuels has also exercised its option to lease an additional 24,000 sqm site adjacent to where its first 100,000 tonnes per annum biodiesel plant is being constructed.
Mission Biofuels' strategy is to produce biodiesel from crude palm oil and then sell it into the European market.
The company believes its financial strength lies in the low cost of crude palm oil relative to other raw materials used to make biofuels, such as rapeseed oil.
Mission Biofuels expects its Malaysian plant will offer lower labour, land and utility costs compared with its Australian and European counterparts.
Mission Biofuels has already signed a five-year offtake agreement for the sale of all its biodiesel production into the German market with Austrian-based fuel trader Godiver.
The company listed earlier this month at a premium, opening on the Australian Stock Exchange at $1.29, up 29 cents on its issue price.
At market close, shares in Mission Biofuels were up 3.5 cents to $1.50.
Below is the company announcement:
The Malaysian Government has informed Mission Biofuels that the company's application for a license to establish an additional 200,000 tonnes per annum biodiesel facility adjacent to its current site at Kuantan Port in Malaysia has been approved.
The license also allows Mission Biofuels to produce Palm Fatty Acid Distillate and Glycerine, as by-products of the biodiesel production process.
The Malaysian Government, in its letter dated 18 May 2006, also informed the company that its application for 100% pioneer tax status, in relation to this new facility, is under consideration. The pioneer status, if granted, will exempt all statutory income generated by the additional facility from payment of Malaysian income tax for a period of 5 years.
The directors are confident of receiving the pioneer status approval soon.
Mission Biofuels has also exercised its option to lease an additional 24,000 sqm site adjacent to where its first 100,000 tonnes per annum biodiesel plant is being constructed.
The 22 year lease for the site will be on similar terms to its existing lease agreement with the Kuantan Port Consortium Sdn Bhd and is expected to commence from September 2006.
Mission Biofuels is incorporating a new wholly owned Malaysian subsidiary, Mission Biofuels Sdn Bhd and will request the Malaysian Government to issue the manufacturing licence for the additional 200,000 tonnes per annum facility in the name of this new subsidiary.
Mission Biofuels will make further announcements once the expansion plans are finalised and approved by the Board of Directors of the Company.
CROWN CONTRACT - COMMENCEMENT DATE OCCURS
Mission Biofuels further wishes to announce that the conditions precedent to commencement of its contract with Crown Iron Works Company, USA for the supply and erection of equipment for its first 100,000 tonnes per annum biodiesel plant have been fulfilled and the commencement date, as defined under the contract, occurred on 18 May 2006.
