Tongaat Hulett secures US$5,2 for Pezulu Project

05 Aug, 2022 - 00:08 0 Views
Tongaat Hulett secures US$5,2 for Pezulu Project Tongaat Hulett Zimbabwe

The Chronicle

Nqobile Bhebhe, Senior Business Reporter
SUGAR processor Tongaat Hulett Zimbabwe says a local financial institution has availed US$5.2 million for the development of 1 168 ha Pezulu Project.

Pezulu Project

In a trading update for the year ended 31 March 2022 and the first quarter ended 30 June 2022, Tongaat said the US$5.2 million is about 50 percent of the total development cost.

“Good progress has been made with respect to the development of 1 168ha of Pezulu Project with one local bank having availed US$5,2m (about 50 percent of the total development cost) with other banks indicating a willingness to fund the balance,” it said.

Tongaat said following recommendations from the Ministry of Industry and Commerce, a Tribunal constituting of three arbitrators was set up to determine commercial issues relating to the sugar milling agreement for the 2022/23 milling season.

“The arbitration is at an advanced stage, with anticipation of concluding the process within the current milling season.

The inputs and extension support to private farmers is ongoing.

The Company continues to implement various vertical and horizontal sugarcane growth programs.

“A partnership framework whereby Tongaat Hulett Zimbabwe is co-managing certain underperforming out-grower farms is progressing satisfactorily.

“To date, 61 farmers have volunteered to partner with the Company in the co-management arrangement.

Under the co-management framework some 593ha have been ploughed out and replanted to new roots.”

Giving an update on Project Kilimanjaro, the sugar processor said the Hippo Valley Estates Limited, in partnership with sister company Triangle Ltd, Government and banks continue to progress the cane expansion project.

The Government has since allocated 700ha of the developed sections of the 4 000ha Kilimanjaro Project to 41 new beneficiaries as part of the economic empowerment and social transformation process, it said.

“Harvesting of the 562 ha fully planted is in progress with some very good yields being realised, whilst the balance of 138ha is currently being planted to complete the Empowerment Block.

“Development on the remaining 3 300ha (of which 1931ha are fully bush cleared, land preparations and other infrastructure substantially progressed) remain on hold pending resolution of tenure issues relating to this block, which are being progressed with Government, further to which appropriate funding mechanisms will be put in place,” it added.

In order to further contribute to socio-economic transformation and to facilitate inclusion of more local farmers in the sugar value chain, together with Triangle Ltd, it is actively assisting new farmers who have been allocated virgin land with clear water rights and in areas close to the mills, with technical and commercial feasibility studies, mobilisation of funding and where required, actual development of the land to sugarcane on a full cost recovery basis.

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