BAL Bioenergy AF.(See LSE:SBLM)

 

TIDMBAL 
 
RNS Number : 7116P 
BioEnergy Africa Ltd 
30 March 2009 
 

BioEnergy Africa Ltd / Index: AIM / Epic: BAL / Sector: Renewable Energy 
30 March 2009 
BioEnergy Africa Ltd ('BioEnergy Africa' or 'the Company') 
Operations Update, Restructuring & Director Changes 
 
 
BioEnergy Africa Ltd, the AIM listed company formed to develop the production of 
ethanol from sugar cane projects in southern Africa, announces the following 
update on the Company including progress made at its Massingir Project 
('Massingir') in Mozambique and a restructuring of the Board. 
 
 
Development at Massingir is progressing and the Company remains committed to 
fulfilling the conditions set out in the initial DUAT granted by the Government 
of Mozambique. Considerable advances have been made in the period since the 
Company acquired Massingir, with site clearing, as part of the first phase of 
estate development, remaining a priority. By February, more than 800 hectares 
had been cleared of trees and shrubs, and some 170 hectares had been windrowed 
prior to planting. 
 
 
In accordance with the Company's community responsibilities under the terms of 
the initial investment agreement with the Government of Mozambique, 
approximately 125 family drip systems have been implemented, with excellent 
results on the first vegetable harvests. This is seen as a training facility for 
involving local people in the wider irrigated community systems. Some 20 
hectares of maize have been planted on irrigated land for the local community. A 
further 40 hectares is being planted in the coming weeks in addition to the 
Company providing further irrigated land for local villages, designed to enable 
the development of profitable agricultural activities for the local population. 
The Company has also acknowledged the requirements of the nomadic peoples who 
previously used the estate for grazing their livestock. Dipping and veterinary 
services will be provided on the borders of the project, which will not only 
provide invaluable services in this rural area, but could also be a potential 
future source of revenue for BioEnergy Africa. 
 
 
In spite of the progress made, the current global economic climate and resultant 
reduced interest in non-carbon related fuel products has prompted a strategy 
review by the Company. The primary focus of this review is the reduction of 
overheads in order to preserve cash and the identification of where value can be 
created for shareholders. The ability for companies in this sector to raise 
finance for highly capital intensive projects has been greatly curtailed, a 
situation that the Board is well aware of. With this in mind, the Company is 
reviewing its development strategy to ensure the capital raised in August 2008 
is preserved while at the same time ensuring that the obligations of the Company 
re the DUAT are achieved. In line with this, the employment of Nick Brooks and 
Jorge Neves has been terminated and they have ceased to be Directors of the 
Company. Izak Cornelis Holtzhausen, who has held the position of Development 
Director from the outset, and who has been involved in all aspects of the 
project including financing and on ground implementation over the last three 
years, is re-assuming control of the Massingir Project in its entirety. The 
Board would like to thank Nick and Jorge for their contribution and wishes them 
well in the future. 
 
 
** ENDS ** 
 
 
For further information please visit www.bioenergy-ltd.com or contact: 
 
+--------------------+------------------------------+---------------------+ 
| Phil Edmonds       | Bio Energy Africa Ltd        | Tel: 0854 108 6060  | 
+--------------------+------------------------------+---------------------+ 
| Jonathan Wright    | Seymour Pierce Ltd           | Tel: 020 7107 8000  | 
+--------------------+------------------------------+---------------------+ 
| Sarah Jacobs       | Seymour Pierce Ltd           | Tel: 020 7107 8000  | 
+--------------------+------------------------------+---------------------+ 
| Hugo de Salis      | St Brides Media & Finance    | Tel: 020 7236 1177  | 
|                    | Ltd                          |                     | 
+--------------------+------------------------------+---------------------+ 
| Susie Callear      | St Brides Media & Finance    | Tel: 020 7236 1177  | 
|                    | Ltd                          |                     | 
+--------------------+------------------------------+---------------------+ 
Notes 
 
 
BioEnergy Africa Ltd is an AIM listed company formed to develop the production 
of ethanol from sugar cane projects in southern Africa. The Company's initial 
project is the 30,000 hectare Massingir Fuel Ethanol Project in Mozambique where 
it is targeting the initial production of 600,000 litres of ethanol a day rising 
to 1,200,000 litres of ethanol a day at full capacity. BioEnergy Africa has an 
experienced Board with established contacts in southern Africa and experience of 
introducing natural resources start-up companies to AIM. 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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