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operations

Mozambique

Overview

Tongaat Hulett acquired interests in two mills and cane estates in Mozambique in 1998, a 75% share in Açucaeira de Mozambique (Mafambisse) and 49% share in Açucaeira de Xinavane (Xinavane). The Government of Mozambique owns the remaining shares in both these companies. In 2002, Tongaat Hulett Açucar, a 100% Mozambique registered subsidiary of Tongaat Hulett, acquired the cane estates from Xinavane.

Mafambisse

Mafambisse is situated on the banks of the Pungwe river in the Dondo district of the Province of Sofala some 54 km inland of Beira. The mill was originally built in 1965 and upgraded in the late 1980s at a cost of US$ 50 million.

In 1996, Tongaat Hulett assumed management responsibility for Mafambisse and in 1998 acquired a 75% stake from the Government of Mozambique. This has been increased to 85% in 2008. Production is expected to rise from 45 000 tons of sugar in 2008 to 90 000 tons in 2010.

Xinavane

Xinavane is situated on the banks of the Incomati river approximately 136 km north west of Maputo. British investors arrived at Xinavane in 1914 and undertook the initial development, building the first mill downstream of the present one. Subsequently, a Portuguese owned company took over the company in the 1950s and relocated the mill to its present site.

In 1998 Tongaat Hulett Sugar acquired a 49% stake in Xinavane and took over the management in the same year, During the rehabilitation phase that followed, most of the original canals, drains and pumps designed for flood irrigation have been repaired and re-designed to the present flood, floppy and pivot irrigation systems. The rehabilitated mill is expected to produce 78 000 tons of sugar by the year 2007.