Published: 27 September 2013

Pursuant to the passing of the Scheme of Arrangement, Starafrica has published an update.

Negotiations with potential buyers of Starafrica's investment in Tongaat Hulett Botswana and Bluestar Logistics are in progress and Starafrica hopes to conclude both disposals by 30 November 2013.

The plant upgrade project at Goldstar Sugars Harare (GSSH) is progressing with 85% of the contract price having been paid as per the payment terms.

The first lot of equipment constituting 35% of total is undergoing pre-shipment inspection by SGS an international engineering consultancy firm. Shipment is targeted for early October 2013.

The manufacture of the remainder is in progress and shipment will be done on or before 31 October 2013. The civil works is in progress and is scheduled to be completed on or before 7 October 2013. Installation and commissioning of the equipment is targeted for completion in January 2014.

The supply of raw sugar to GSSH was restored in December 2012 under an Over-arching Toll Refining and del Credere Agency agreement signed between Starafrica and the raw sugar supplier.

GSSH is performing its sugar refining operations although it is facing stiff competition from lower priced imported sugar, hence the sugar industry has made submissions to government with a view to countering the adverse impact of sugar imports.
- businessdaily

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