RH ventures into palm oil

Source:
The National - Wednesday, March 23, 2011
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By BOSORINA ROBBYTHE Rimbunan Hijau (PNG) Group is diversifying its business interest in the country by venturing into palm oil production.The Sigite Mukus Integrated Rural Development project located in East New Britain was revealed yesterday by RH executive director Ivan Lu at the launch of a report on the economic impacts of palm oil in PNG.Lu said although the initial stages of development took almost three years to process, with more still to complete, RH has succeeded in securing 40,000 hectares of land from landowners, while equipment were sent early this year to begin work.“The Sigite Mukus project includes an investment of more than K600 million involving three palm oil mills.“It is expected to contribute royalties, payments, levies and other community funding worth K800 million over the life of the project.“This is around K35 million per year,” Lu said.He said this would have a significant effect in driving economic development in East New Britain and the rural communities, where continued growth was vital if PNG were to bring 40% of the population out of poverty.He said after 20 years in PNG, RH understood the importance of economic development to the nation, where economic growth, investment and employment had been strong in recent years.Lu said with strong economic indicators now, RH’s move into the palm oil industry was the latest investment in their long-term commitment to PNG.He said responsible palm oil development offered huge potential to generate economic growth for the people of PNG for many years. “Many people in PNG and around the world assume that all we do is timber.“But we are a diverse company with interests in retail, media, property development, transport and logistics and now agriculture.“In 2006, just under 50% of our turnover came from non-forestry operations,” he said.