Obtala launches dried fruits business in Tanzania

14th Oct 2013 11:38

Africa-focused Obtala Resources has announced a deal to establish a dried fruits business as it moves from a focus on gems to agribusiness and timber. The AIM-listed company has agreed with a local partner to set up an operating, management and marketing company specialising in growing and drying fruit, with 617 hectares of agricultural land in Tanzania.Obtala, which still owns majority positions in Paragon Diamonds and Bushveld Minerals as strategic investments, will own 80% of the business with the partner retaining the remaining 20%.Managing Director Simon Rollason pointed out that the new business was close to existing major markets and export facilities in Tanzania, lying on the main highway, 250km from Dar-es-Salaam. "This project lies in close proximity to our sun dried tomato farm which remains on-course for first production in November 2013. "Our objective is to produce a value added dried product on site which can be sold locally and into the export market." The land has 1,500 fruit bearing mango trees and Rollason said the plan was to plant out a substantial fruit tree orchard, with other high-yielding and high-value crops utilising up-to-date farming practices and irrigation to optimise margins and produce revenues all year round. "This project together with the recently announced cannery operation in Lesotho is in line with our development plans to re-position the company as a self-sustainable, profitable, African focused agribusiness and timber trading company with the focus on developing a vertically integrated company which will reap the benefits of value added production and branding."Shares in Obtala were down 0.1% at 8.5p at 11:29 on Monday.OH