Mission New Energy to undertake restructuring due to low harvests of jatropha

Mission New Energy Ltd., the Australian-based global provider of environmentally sustainable biofuels said its management has begun a detailed review of its operations in view of the company’s cash position and the lower-than-expected harvest yields of their jatropha harvest. The low volume of harvest was attributed to the immaturity of the jatropha trees in its plantations, which are now three years old. Jatropha trees take an average of seven years to reach maturity. Because of this, the company said it expects to downgrade both productive acreage and yield estimates in 2012. Mission Energy will stop planting jatropha until it is able to determine the yield it will get from the existing plantations. “Structural changes to the business are absolutely necessary in light of the current stage of development of the jatropha operations,” said Nathan Mahalingam, CEO of Mission Energy. The company’s restructuring will most likely include a reductions in operating expenditures, divestment of non-core assets, as well as raising equity capital. (January 27, 2012)