Update on Addax Bioenergy operation in Sierra Leone

24 June 2015

Over the next six months, AOG, as main shareholder, and Addax Bioenergy SA have decided to downscale their sugarcane bioethanol operation in Makeni, Sierra Leone, and to conduct a review of all options for the future.

Since its inception in 2008, this Greenfield project, run by AOG subsidiary Addax Bioenergy, has had to overcome a number of unforeseeable events. These have had a significant impact on the timeframe, costs and revenues initially planned. They include the Ebola outbreak in May 2014, which not only has had a terrible human toll on the country, but has also led to substantial delays as most of Addax Bioenergy’s contractors declared “force majeure” and left the site.

Taking advantage of the naturally-low level of activity during the rainy season when no revenues are earned, costs will be reduced and operations downscaled. The number of expatriate consultants will be reduced. At the same time, most local employees will be maintained and assets kept in good working order.

The review process will explore all options for the operation’s future. AOG and Addax Bioenergy intend to work closely with H.E. President of Sierra Leone and his government to find the right way forward for the operation and for the country.

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