19/01/2012 (Proactive Investors UK) - Equatorial Palm Oil (LON:PAL) announced a key milestone, saying it had finished commissioning Liberia's first commercial scale oil palm mill.

The processing mill at the Palm Bay estate now has a production rate at full capacity - of around 5 tonnes an hour with current extraction rates of more than 18 per cent.

Investors welcomed the news and the shares were up 10.34 per cent, at 16 pence, at 9.45am.

The mill was inaugurated in May last year by Liberia's president and it is sourcing fresh fruit bunches from the 3,500 hectares of existing oil palms rehabilitated by the company.

The crude palm oil is to be sold both in Liberia and internationally.

EPO's chairman Michael Frayne said: "Commissioning of this mill is a key milestone for EPO. In addition to revenues from the production of CPO, the mill serves as an excellent training and development facility for our employees as we roll out our large scale planting programme.

"With President Ellen Johnson Sirleaf securing a further six year term, Liberia can enjoy a continued period of political stability under democratic rule. 

"We are proud to be playing a part in the continuing programme of redevelopment and look forward to increasing our contribution to the local economy."

The firm’s long-term plan is to become a sustainable, low-cost African producer of crude palm oil, which is a highly-important food ingredient.

It is found in a variety of everyday food products including chocolate, margarine, pies and even bread. Meanwhile, non-food consumable products like soap often contain palm oil.