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Obtala Resources agriculture JV in Tanzania gets key govt approval

Published: 09:14 21 Oct 2011 BST

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Obtala Resources Ltd (LON:OBT) said the Tanzanian agriculture joint venture which it entered in April 2011 has been granted an environmental impact assessment (EIA) certificate for its farm land in southern Tanzania.

The firm's agricultual business Montara Continental acquired a 70 percent stake in the Montara Land Company, which operates a 200 square kilometre concession in the Songea District in the Ruvuma Region.  The remaining 30 per cent is held by local partner Lutukira Mixed Farm.

Montara Continental intends to plant groundnuts, sunflower, sesame, soya and seed maize on the project with the bulk of the crop produced being sold back to the seed suppliers in the form of an off-take agreement. The balance of the crop will be used next year as additional land is cleared and planted.

The area is being used as a "proof of concept" and will become a training centre for the surrounding farmers as part of a planned out-grower scheme, as the project grows. The field camp has been established and is operational, and farming equipment has been purchased and is being delivered to site. 

Montara Continental will continue to invest in Tanzania and Mozambique with the objective of realising profits from both expanded processing and farming operations.

Obtala chairman Francesco Scolaro said: "Montara remains on course with our development plans for the project and hope to have the first harvest in March 2012. With food prices expected to increase over time we believe Montara can develop a food industry in East Africa which operates efficiently while ensuring the long term cultivation of the land.

Obtala is a diversified multi-national group with a presence in mining and mineral exploration, and developing interests in energy, agriculture and strategic investments.

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