Golden Hope's palm deal

Golden Hope's palm deal

KUALA LUMPUR (Reuter): Golden Hope Plantations Bhd said it plans to spend 600 million ringgit to turn about 72,000 hectares (177,916 acres) of agricultural land in west Kalimantan, Indonesia, into oil palm plantations.

Golden Hope Overseas, a wholly owned unit of Golden Hope Plantations, will team up with Indonesia's PT Multi Cipta Lahan Subur of the Benua Indah Group to carry out the work, Golden Hope Plantations said in a statement released late on Thursday.

Joint-venture agreements for the project were signed in Pontianak, West Kalimantan, on Wednesday.

The eight-year project will have two phases. Golden Hope will hold a 75 percent stake in the first phase and 70 percent in the second, PT Multi Cipta owning the balance.

A kernel crushing plant, a bulking installation and a refinery will be built to support the new plantations for an estimated 100 million ringgit.