Energy
Illovo Malawi ponders investing in power generation
November 30, 2023 / Admin
Illovo Malawi Sugar Group says it is exploring the possibility of investing in power generation.
In the extracts from the audited financial statements for the year ended August 31 released on November 29, 2023 signed by Chairman Jimmy Lipunga and MD Lekani Katandula, the Group says it wants to develop a power supply scheme with the potential to supply excess power to the national grid and other major projects, thereby ensuring robust business improvement and fair returns for all stakeholders.
Lipunga and Katandula reports that the Group is currently in negotiations with the Malawi Government regarding water abstraction from the Shire Valley Water project.
“The refinement of approaches to the agricultural recovery program, factory optimization initiatives, cost reduction efforts, and execution of commercial strategies will remain pivotal to the group’s efforts to continually grow and transform the business,” say Lipunga and Katandula.
They state that the group acknowledges the valuable contributions of its people and will continue to invest in talent growth and development for the benefit of both the business and the Malawian Community.
Meanwhile, Illovo’s business’s profitability continues to be impacted by the ongoing depreciation of the local currency, the Kwacha, against major trading currencies; significant increases in electricity and diesel prices; global supply chain disruptions for essential commodities on account of geo-political tensions adverse economic and climatic factors; regulatory changes; and other external shocks.
“The Group will persist in implementing strategies to ensure resilience and growth remain fundamental to its operations, with a particular emphasis on safety as a foundation for achieving these objectives”, reads the statement
The Group reported K272 billion in revenue for the year, setting a new record-high for the group representing a notable 46% increase over prior year. Profit before tax was recorded at K81.8 billion, represented a 113% growth over the previous year.
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Rehabilitation:
The establishment of a stable and self-sustaining ecosystem, but not necessarily the one that existed before mining began. In many cases, complete restoration may be impossible, but successful remediation, reclamation, and rehabilitation can result in the timely establishment of a functional ecosystem.
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Remediation:
The cleanup of the contaminated area to safe levels by removing or isolating contaminants. At mine sites, remediation often consists of isolating contaminated material in pre-existing tailings storage facilities, capping tailings and waste rock stockpiles with clean topsoil, and collecting and treating any contaminated mine water if necessary.
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