Name of the project and location
Sugar mills expansion project, Mozambique.

Project description
The Tongaat-Hulett Group (THG) has approved an expansion of its sugar milling and cane growing activities at its Xinavane and Mafambisse sugar mills in Mozambique.

The R1,163-billion Xinavane expansion will see sugar production increasing from 61 000 t in 2005 to 180 000 t by the 2009 season. The mill infrastructure will be refurbished and/or upgraded, with new equipment being installed to increase the design crush rate from 150 t/h cane to 380 t/h cane, achieving globally competitive economies of scale.
Cane growing activities will be expanded by the planting up, in 2007 and 2008, of an additional 6 500 ha under irrigated cane, taking the yearly cane crush from 509 000 t in 2005 to 1,5-million tons. The additional sugar production of 119 000 t will be sold in the domestic Mozambican market, with the balance being exported into the European Union in terms of Mozambique’s duty and quota free access from 2009 under the ‘Everything-But-Arms initiative’ for least developed countries.
The Xinavane project is subject to a favourable outcome to the environmental impact assessment process currently under way, and South African Reserve Bank approval.
The Mafambisse expansion entails the planting of a further 2 100 ha under cane. This cane will be irrigated from the recently constructed Muda dam near Mafambisse and will increase production at the mill to 82 000 t/y over the next two years. Plans are well advanced for a further 34 000 t expansion at Mafambisse, which will result in total production rising to 116 000 t/y.

Value
R1,3-billion.

Duration
The commissioning of the expanded factory facilities will take place in April 2009.

Breakdown of main contracts
Not stated.

Client
Tongaat-Hulett Group.

Latest developments
Not stated.

Participants
Not stated.

Construction materials
Not stated.

On budget and on time?
Too early to state.

Contact details for project information
THG, tel (032) 439 4000, fax (032) 945 3333 or email info@tongaat.co.za .