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Cape Town - Tongaat Hulett recently launched a project to build a refinery annexed to its Xinavane Sugar Mill at a recent ground-breaking ceremony by its CEO Peter Staude and the Prime Minister of Mozambique, Carlos Agostinho Do Rosário.
The 90 000 tonne per year refinery will process brown sugar into white sugar, and will be built at a cost of R550m. The fast-track project will produce its first product in September 2018.
Mozambique is a growing market and has a shortage of refined white sugar production, with some 90% of its needs currently imported. Current sugar consumption in Mozambique is regarded as very low at 9kg/capita/annum, compared with Zimbabwe at 21kg/capita/annum. In some rural areas consumption is as low as 4kg/capita/annum.
READ: Tongaat Hulett's Zim unit returns to profitability
The production from the Xinavane Refinery will replace imports and the refinery design will provide for efficient future expansion to match growth in the local market and in export opportunities.
The design and engineering of the refinery will innovatively integrate proven technology with state-of-the-art Tongaat Hulett process and equipment design to produce high quality white sugar, meeting international standards and the requirements of the most demanding customers.
The Mozambique government has expressed strong support for the domestic sugar industry and a preparedness to provide investment incentives and maintain policies, regulations and supportive measures conducive to the success of a project to build a sugar refinery, and its subsequent successful operation.
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