Our ongoing agriculture activities mean we have a substantial land portfolio within the primary growth corridors of KwaZulu-Natal, with strong policy support for conversion at the appropriate time.
In partnering with key stakeholders, we’ve created mutually beneficial relationships for our shareholders, governments, private farmers and their representative bodies, communities, employees, as well as the people impacted by our company’s operations.
Tongaat Hulett was formed through a merger between the Hulett Corporation Limited and the Tongaat Group Limited, with both their operations dating back to the 1800s. We’ve had a primary listing on the Johannesburg Stock Exchange since 1952.
We operate four sugar mills in South Africa, located on the KwaZulu-Natal north coast and in the Zululand region. Together, these mills are able to produce more than 1 million tons of sugar per year from cane sourced from rain-fed own estates, large-scale commercial, and small-scale private farmers in rural KwaZulu-Natal.
The operation’s central refinery in Durban produces 600 000 tons of high-quality refined sugar per year, with the primary product being the leading Huletts® sugar brand. The South African sugar product range offers a total sweetener solution, including a range of high-intensity sweeteners.
The Mozambique sugar operations are made up of the expanded sugar mills and estates surrounding Xinavane and Mafambisse. Sugar production at the two operations have a combined installed milling capacity in excess of 340 000 tons of sugar per year.
The sugar estates are irrigated and are generally located in areas with favourable growing conditions, resulting in high cane and sucrose yields. The R550 million, 90 000-ton sugar refinery at its Xinavane became operational in the second half of 2018.
The favourable agricultural conditions, proximity to ports, and the technical support from South Africa, position the Mozambique operations well for further growth. Our operations also include extensive landholdings bordering the Kruger National Park, which have high tourism potential.
The Botswana operation has the capacity to pack and distribute 60 000 tons of sugar per annum using its Blue Crystal® brand.
The Zimbabwe sugar operations consist of Triangle and a 50,3% stake in Hippo Valley Estates, together representing a combined installed sugar milling capacity of more than 640 000 tons. The total refined sugar installed capacity is 60 000 tons, and the Triangle ethanol plant has an installed capacity of 41 million litres over a 48‑week production season.
The Huletts Sunsweet® brand is the leading sugar brand in Zimbabwe. The country’s Lowveld region has excellent topography and climate, an established water storage and conveyance infrastructure for irrigation, and is recognised globally as a highly competitive sugar producing area. Our Zimbabwean operations also include the country’s largest cattle herd and extensive game reserves, which have significant potential for tourism.
The eight sugar mills in Mozambique, South Africa and Zimbabwe all generate electricity from bagasse during the sugarcane crushing season. In some instances, these operations supply electricity to the grid. In Zimbabwe, Triangle has an ethanol plant which provided 21,7 million litres for blending with petrol during the 2017/18 year. Our company is well placed to benefit from evolving renewable energy dynamics, with the potential to build large-scale renewable electricity plants, as well as the opportunity to convert our export sugar to ethanol in our Southern African operations.
Our animal feeds operation, Voermol Feeds, is located at the Maidstone Mill in Tongaat, KwaZulu-Natal. We manufacture and market a range of energy and supplementary feeds to the livestock farming community through our Voermol® brand, which uses bagasse and molasses. The production and marketing of high-quality, cost-effective products over more than 50 years, combined with the development of long-term relationships with farmers, agricultural companies and suppliers, has established Voermol Feeds as the market leader in the molasses and pith-based animal feeds industry in South Africa.
Tongaat Hulett’s portfolio of prime land near Durban and Ballito in KZN, South Africa, has an indicative fair value of R11 billion. This significant portfolio of developable hectares of prime land has the potential to be converted out of sugarcane into urban land as urban development expands and the demand arises. We have well-established land development resources, a solid track record and the right processes to realise this value creation process. This will provide the base of significant value uplift through participation in the downstream property development value chain, together with meaningful social impact through stakeholder value creation, social upliftment and job creation. The indicative developed value of this portfolio is estimated at R35 billion.
