Mills

The Group operates mills in North Sumatra, East Kalimantan and Bangka in which it processes all of its crop produced in these regions. In addition, fresh fruit bunches produced at its Simpang Kiri estate in Aceh is processed at a third party mill under a tolling contract. Crop from its 38%-owned Kerasaan Estate, is processed in a neighbouring mill owned by the SIPEF group, the majority owner of the estate. A further three mills will be built as soon as the crops on our existing and newly-acquired plantations warrant it.

Our mills are operated to the highest standards and produce very high levels of crude palm oil from the fruit they process. This oil extraction rate is less than 20% for the industry as a whole. We produce on average more than 24%, with levels of up to 26% in our newer mills.

Average oil-extraction rate, 2016
(Per cent)

Source: Company data

Summary information about how all of the Group's fresh fruit bunches are processed is given in the tables below:

 
OVERVIEW
Pangkatan
mill
Bumi Permai
mill
Tengkalat
mill
Pati Sari
mill
Bukit Maradja
mill
Operated by M.P. Evans Group M.P. Evans Group M.P. Evans Group Third party SIPEF Group
GPS location 02° 06' 44"(N)
99° 56' 44"(E)
00° 17' 44.84"(S)
116° 45' 39.65"(E)
01° 37' 18.44"(S)
105° 59' 18.39"(E)
04° 05' 18.7"(N)
97° 57' 39.3"(E)
03° 00' 44.26"(N)
99° 14' 08.06"(E)
Group companies
supplying mill
Pangkatan,
Bilah, Sennah
Prima Mitrajaya
Mandiri, Teguh
Jayaprima Abadi
Gunung Pelawan
Lestari
Simpang Kiri Kerasaan
Group smallholder
co-operative scheme
No Yes Yes No No
Third party
smallholder fruit
Yes Yes Yes N/A No
 
OUTPUT
Pangkatan
mill
Bumi Permai
mill
Tengkalat
mill
Pati Sari
mill
Bukit Maradja
mill
2016 production (t):
CPO
PK
 
36,200
8,00
 
60,000
11,000
 
21,100
4,600
 
8,300
1,800
 
23,000
5,400
of which: RSPO certified
CPO
PK
 
34,500
8,400
 
54,900
10,100
 
-
-
 
-
-
 
23,000
5,400
hence: RSPO %
CPO
PK
 
95%
98%
 
91%
92%
 
0%
0%
 
0%
0%
 
100%
100%
 
METHANE CAPTURE
Pangkatan
mill
Bumi Permai
mill
Tengkalat
mill
Pati Sari
mill
Bukit Maradja
mill
Methane capture No Yes Yes No Yes
Biogas generation N/A Yes Yes N/A No
 
CERTIFICATION
Pangkatan
mill
Bumi Permai
mill
Tengkalat
mill
Pati Sari
mill
Bukit Maradja
mill
RSPO
(first certified)
Yes
Oct 2012
Yes
Jun 2014
No
Expected 2017
No
N/A
Yes
May 2010
ISCC
(first certified)
Yes
Aug 2014
Yes
Jul 2016
No
Expected 2017
No
N/A
Yes
Jan 2011
ISPO
(first certified)
Yes
Jan 2014
Yes
Apr 2017
No
Expected 2018
Yes
Jul 2016
Yes
Jul 2016

 

The Group's objective is that all its mills achieve RSPO certification within 18 months of commencing operation. The Group began accreditation for the Pangkatan mill as soon as it took over direct management of this operation in January 2010. The first Kalimanatan mill was accredited in 2014; the Bangka mill began the process of accreditation as soon as it was commissioned in May 2016, and is on track to receive accreditation in 2017. All the Group's estates, including the smallholder co-operatives attached to the Group's new projects, are covered by this accreditation.

Indonesian Sustainable Palm Oil (“ISPO”) certification, mandatory in Indonesia, is similar in most respects to those of the RSPO. Pangkatan Mill was ISPO certified in early 2014 and Bumi Permai Mill in early 2017; the Tengkalat Mill in Bangka is in the final stages of the audit and accreditation process.