The Luabo sugar mill, in the central Mozambican province of Zambezia, may be rehabilitated soon, pending on the conclusion of negotiations between the governments of Mozambique and Mauritius, reports Monday's issue of the daily paper "Noticias".
Mozambican Agriculture Minister Helder Muteia told reporters on Friday that alongside the production of sugar, the Luabo complex will also produce rice and raise cattle.
Speaking during the visit of Mauritius Prime Minister Paul Berenger to the Marromeu sugar factory, in Sofala province, Muteia said that after a number of studies, the Sena Company, which owns the Marromeu plant, is seriously considering rehabilitating the Luabo complex.
That work would include the complete refurbishment of all infrastructures, including houses and health units, at a cost of between 60 and 80 million US dollars.
The majority shareholders in the Sena company are Mauritian concerns, and they financed the rehabilitation of the Marromeu plantation and mill, at a cost of 130 million US dollars.
Marromeu is currently the largest sugar factory in the country, and it is expected to produce about 90,000 tonnes of sugar this year.
Marromeu is on the south bank of the Zambezi river, and Luabo is on the north bank. Both factories were comprehensively sabotaged in attacks by the apartheid-backed Renamo rebels in the mid-1980s.
Speaking of the Buzi sugar mill, also in Sofala, Muteia said that an agreement has been reached between a Mozambican group and South African investors to set up a consortium to restore that unit.
They are to meet with the government this week to establish a work plan and define priorities.
Fonte:AIM
