IJM Plantations to invest $185 million in Malaysian palm oil production

In Malaysia, IJM Plantations will invest $185 million to develop land in East Kalimantan for palm oil production. The group has increased its plantations to 60,000 hectares in the past two years, and will add another 30,000 hectares with this development. 27,000 hectares are currently planted.

The company is constructing a biodiesel plant in Sabah, and said that they are proceeding with construction and installation of a first processing module with 9 Mgy capacity.

The Sabah Land Development Board (SLDB) demonstrated jatropha biodiesel in a Toyota Land Cruiser trial conducted at the Sabah Development Corridor Expo. The SLDB has proposed expansion of jatropha capacity in Malaysia as a poverty-reduction program, saying that farmers could earn RM 1500 per month from farming 6-acre plots of jatropha curcus, from seedlings provided by Borneo Alam Ria Biomatrix.

The SLDB general manager said that Nihon Biotech, Kelana Stabil and TKM Resources have indicated that they would invest up to RM 300 million in jatropha cultivation and would purchase the fuel for export to the US, Japan and South Korea.

Sabah also announced this month that it would seek $304 million over 18 years from the Federal Government to assist in the development of its Palm Oil Industrial Cluster (POIC) in Lahad Datu.

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