South African company to invest in local ethanol project

Minister of Agriculture Clement Dlamini said the company, Fuel Ethanol and Agricultural Plantation, completed a preliminary study on the initiative. He said the owners of the company reflected that it would be a viable project to undertake in the country as per the findings of the study.

Dlamini said what was left as regards the progress of the multi-billion emalangeni project was to conduct a final study, which would be done soon.

“As the project will require land measuring 15 000 hectares, the company is currently negotiating for some government farms to be used as a base for the initiative. To show commitment towards the project, government has listed some farms in Lavumisa to help with the needed area,” he said.

He said once the study was completed, the ethanol project which comprises establishment of a plant at Somntongo constituency would take place.

“The ministry is excited about the progress of the project so far and it is promising. The initiative will significantly contribute to the country’s economy as close to 2 000 people will be hired. Worth noting is that farmers will be greatly capacitated once the project reaches full swing,” he said.

Dlamini said the ministry of natural resources and energy was also negotiating with South Africa pertaining a reliable supply of water. He said the factory that would manufacture ethanol from sweet sorghum was to open along the Siphofaneni/Lavumisa corridor.

 Farmers to own shares in company

Member of Parliament Doward Sihlongonyane says once the ethanol plant to be established along the Siphofaneni/Lavumisa corridor gains momentum, farmers will also own shares.

He said the consultancy firm that conducted the preliminary study on the project said the project would be sustainable. Sihlongonyane said the project was definitely continuing, adding that operations would start next year. He said the owners of the company were very keen to start operations.

“The company has had talks with the farmers of the area and they were told that they would also own shares.

“The farmers are excited about this. It is encouraging to see investors who are also interested in empowering local people,” he said.

Sihlongonyane said the farmers would grow the sorghum and supply the ethanol factory. He said besides the employment part, the communities surrounding the project area would have a reliable source of water.

Sihlongonyane said the area where the project would be based had good infrastructure which would expedite doing business. He said His Majesty King Mswati III would officiate at a sod cutting ceremony to mark the launch of the project.

Sihlongonyane said the very same company to operate the ethanol firm would be the one that would run the Dvokolwako Diamond Mine.

by Nomthandazo Nkambule

Source: http://www.observer.org.sz