Oil palm landowners close mill

On Monday this week, landowner groups from within the Wide Bay area gathered and closed the gates leading to the Liguria Oil Palm Mill in the Wide Bay area of East New Britain province.

The closure comes six weeks after East New Britain Palm Oil Limited [ENBPOL], the owner of the mill failed to adhere to eight recommendations.

The recommendations were issued by the National Government after the investigation into concerns raised by oil palm farmers in the Gazelle Peninsula and Open Bay areas, alleging exploitation and illegal price-fixing by the East New Britain Resource Group, the mother company of ENBPOL.

Mata Akun, chairlady of Pomio Oil Palm Growers Association, says the mill operations will remain shut until they get a favorable response from ENBPOL.

The investigation was approved by the National Executive Council.

Based on the outcome of the investigation, International Trade and Investment Minister, Richard Maru, asked the East New Britain Resource Group to comply with the eight recommendations made in the investigation, giving them a four-week window period to respond.

Amongst the recommendations made are the repayment of about K38 million as outstanding payments owed to the landowners and oil palm growers in the Gazelle Peninsula and Open Bay areas, and also to establish a new market price formula that benefits the growers.

At least one other ENBPOL's mill, the Narragit Oil Palm Mill, located at Wuna Palading in the Gazelle Peninsula, is expected to face a cease of operations.

Minister Maru two months ago, had issued a stern warning to the East New Britain Resource Group that if recommendations are not met, the government is ready to take them to court.