Deal #2236

Land area

Intended size

300 000 ha

Size under contract (leased or purchased area)

[2010, current] 110864.0 ha

Size in operation (production)

[2012] 3000.0 ha
[2014] 7300.0 ha
[2015, current] 21000.0 ha

Comment on land area

In phase 1 only 50000 are cultivated. Olam is planning to develop at least 180,000 hectares by 2018 or 2019, including 100,000 hectares of industrial palm oil plantations (in two phases) and up to 30,000 hectares of smallholder palm plantations and 50,000 hectares of rubber plantations. Another sources states 50 000 hectares of oil palm over 4-5 years, and 28 000 hectares of rubber plantations over 6 years. A company source states that Olam Palm Gabon is managing a total area of 110,864 ha, setting aside more than 50% of the land to protect HCV areas, riparian buffers and wetlands.

Intention of investment

[current] Non-food agricultural commodities, Agriculture unspecified, Conservation

Comment on intention of investment

oil palm activities started in 2012. Rubber initiative announced in 2012. Oil palm factory was inaugurated in August 2015. 50% of the land will be used for conservation - HCV (High Conservation Value) areas and riparian buffers.

Nature of the deal

Lease

Negotiation status

[2010, current] Concluded (Contract signed)

Implementation status

[2012] Startup phase (no production)
[2012, current] In operation (production)

Comment on implementation status

planting palms is expected to commence in early 2012 and be completed by 2016. Clearing of secondary forest in the Kango plantation had taken place by the end of April 2012.

Leasing fees

Annual leasing fee

5 000

CFA Franc BCEAO

per ha

Comment on leasing fee

Olam claims that it will pay a lease rent of CFA Franc 5,000 (US$10) per hectare from the 17th year. The first 16 years are free.

Contract farming

Yes

On leased / purchased

Yes

On leased area/farmers/households

[current] 30000.0 ha