Singapore-Olam International Ltd., a global integrated supply chain manager and processor of agricultural products and food ingredients, has announced that it has entered into an 80-20 joint venture with the Republic of Gabon to construct a port-based ammonia and urea complex for a total investment of US$1.3 billion. The complex is targeted to begin operations in the first half of 2014 and run at a full capacity of 2,200 mt/d of ammonia and 3,850 mt/d of urea by fiscal year 2015, producing a total of 1.3 million mt/y of urea. Olam says it has signed a 25-year competitive fixed-price natural gas contract with Gabon to secure a guaranteed quantity and quality of gas as feedstock for the plant. Gabon will hold 20 percent of the venture and guarantee its portion of the debt. The jv will be granted a 10-year tax holiday after the plant starts commercial production, followed by a 10 percent concessional tax rate thereafter. The project will have zero customs duty and VAT for the lifetime of the project. In addition, Olam has signed an agreement to develop a 50,000 hectare palm plantation in the country, with an investment of $236 million. Olam will hold a 70 percent stake and Gabon 30 percent. According to Olam, Gabon has committed to the jv a land bank of 300,000 hectares of palm and rubber plantation development in multiple phases, with the 50,000 hectares developed as phase one.
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