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(Alliance News) - Palm oil producer Dekeloil Public Ltd said Tuesday it has started construction works for its 10,000 tonnes per annum raw cashew nut processing project at Tiebissou in Cote d'Ivoire.
Key activities undertaken includes the drilling of bore holes, with three cubic metres per hour of water identified at two sites, each of which is sufficient to support the boiler and processing requirements.
An electrical contractor has been appointed to start establishing a connection to the grid, and infrastructure works including land clearing and earthworks have been scheduled to start at the end of the wet season in August.
The project has been confirmed to qualify for a new tax incentive scheme, which is expected to generate cash savings of EUR350,000 during the construction phase.
For ten years, Tiebissou will be wholly exempt from corporation tax and exempt for 75% of corporation tax for the next five-year period.
Construction works is due to take 12 months to complete with first production expected in June 2020.
"The commencement of the construction site and construction phase at Tiebissou is a milestone event for the company. We would like to take this opportunity to thank the local government officials and members of the community for sparing the time to attend the opening ceremony at the site and for the support they have shown for the project. In addition, the process to transfer Tiebissou to the new tax code has been completed," said Executive Director Lincoln Moore.
Shares in Dekeloil were down 4.9% at 2.90 pence on Tuesday.