LONDON (Alliance News) - United Cacao Ltd SEZC said Tuesday it has been invited by Peruvian authorities to submit two land privatisation applications covering 12,097 hectares in Peru.
The company said that, based on its previous experience, the process will take around eighteen months and will require a full environmental impact assessment to be undertaken.
Additionally, Peruvian law requires that 30% of any agricultural land area acquired under Peru's Legislative Decree 653 be preserved in perpetuity as a natural reserve.
As such United Cacao expects the net developable area if awarded to be around 6,500 hectares. It does not expect to incur any meaningful costs until the final award of the land.
"We are delighted to have been invited by the state authorities to submit these land privatization applications for freehold agricultural land. Our senior management team and legal counsel are well-versed in the land privatization process under Legislative Decree 653 and are confident of a successful outcome in due course," said Chairman and Chief Executive Officer Dennis Melka in a statement.
Shares in the cacao plantation company were down 4.9% at 95.10 pence Tuesday.
By Hana Stewart-Smith; firstname.lastname@example.org; @HanaSSAllNews
Copyright 2016 Alliance News Limited. All Rights Reserved.