FLOODING OF AGRICULTURAL LAND AT MARAGRA, MOZAMBIQUE

15 FEBRUARY 2000

ILLOVO SUGAR, WHICH HAS A 50% INTEREST IN THE MARAGRA SUGAR MILL IN MOZAMBIQUE,
HAS ISSUED THE FOLLOWING STATEMENT:

1. THE AGRICULTURAL OPERATIONS AT MARAGRA, WHICH ARE FARMED BY INDEPENDENT
GROWERS, ARE DEPENDENT ON IRRIGATION WATER SUPPLIED FROM THE INCOMATI RIVER.
THE RIVER RUNS THROUGH THE CENTRE OF MARAGRA'S AGRICULTURAL ESTATE, COMPRISING
6 200 HECTARES OF LAND.  THE ENTIRE ESTATE IS PROTECTED FROM FLOODING BY A BERM
WALL (DYKE) WHICH EXTENDS ALONG BOTH SIDES OF THE RIVER;

2. THE LEVEL OF THE INCOMATI RIVER ROSE CONSIDERABLY DURING LAST WEEK AS A
RESULT OF THE ABNORMALLY HEAVY RAINS WHICH FELL IN THE NEIGHBOURING SOUTH
AFRICAN PROVINCE OF MPUMALANGA;

3. BY FRIDAY AFTERNOON, 11TH FEBRUARY, AFTER THE LEVEL OF THE RIVER HAD RISEN
EVEN FURTHER AND DESPITE ONGOING ATTEMPTS TO PREVENT FLOODING, WATER BEGAN
FLOWING OVER THE TOP OF CERTAIN SECTIONS OF THE BERM WALL WHICH WERE

SUBSEQUENTLY BREACHED.  BY SUNDAY LUNCHTIME, THE ENTIRE ESTATE WAS UNDER WATER.
 THERE WAS, HOWEVER, VERY LITTLE FORCE ASSOCIATED WITH THE FLOODING OF THE
FIELDS AND AT NO STAGE WAS THERE ANY DANGER TO LIFE;

4. AT THIS STAGE, 15 FEBRUARY 2000, IT IS NOT FEASIBLE TO GAUGE THE EXTENT OF
DAMAGE TO THE CANE CROP AS MUCH DEPENDS ON HOW QUICKLY THE WATER WILL DRAIN
AWAY, BOTH NATURALLY AND BY INTERVENTION.  ONLY ONCE THIS HAS OCCURRED WILL IT
BE POSSIBLE TO DETERMINE HOW MUCH OF THE CROP HAS BEEN AFFECTED AND WHAT DAMAGE
TO THE AGRICULTURAL INFRASTRUCTURE HAS OCCURRED;

5. THE MARAGRA MILL ITSELF, ALONG WITH ITS ADMINISTRATION OFFICES, STAFF
HOUSING AND OTHER INFRASTRUCTURE, IS ON HIGHER GROUND AND HAS NOT BEEN AFFECTED
IN ANY WAY.  THE NORMAL OFFCROP MAINTENANCE PROGRAMME AT THE MILL IS CONTINUING
6. A DECISION ON THE OPERATION OF THE MILL IN THE FORTHCOMING SEASON WILL BE
TAKEN AFTER THE AVAILABILITY OF CANE SUPPLIES CAN BE MORE ACCURATELY ASSESSED;
7. THE RESULTS OF THE ILLOVO GROUP IN THE CURRENT YEAR ARE NOT EXPECTED TO BE
IMPACTED BY THESE FLOODS.
ENDS