Cosan Ltd (CZZ)

Cosan Ltd. was incorporated as a Bermuda company and is a global ethanol and sugar company. Its production is based on sugarcane, a competitive and viable feedstock for ethanol, sugar and energy because of its low production cost and energy efficiency ratio relative to other ethanol sources, such as corn and sugar beet. For the Company's sugar and operations, it operated 18 mills, one greenfield (Jataí), two refineries, two port facilities and numerous warehouses, as of March 31, 2009. All of these facilities are located in the Center-South region of Brazil, which is one of the world's most productive sugarcane regions mainly because of its favorable soil, topography and climate, nearby research and development organizations and infrastructure facilities. Sugarcane is the main raw material used in the production of ethanol and sugar. Sugarcane is a tropical grass that grows best in locations with stable warm temperatures and humidity, although cold and dry winters are important factors for the sucrose concentration of sugarcane. It also faces competition from international sugar producers. The Company has third position in sugar producing in the world, behind British Sugar (4.4 million tons of sugar produced in the 20009/10 harvest) and Südzucker AG of Germany (with 4.3 million tons of sugar sold in the same period). These producers, however, are the beneficiaries of considerable governmental subsidies in its principal sales markets. The Company is subject to different Brazilian federal, state and local environmental protection and health and safety laws and regulations as well as foreign environmental protection and health and safety laws and regulations governing, among other things like the generation, storage, handling, use and transportation of hazardous materials, the emission and discharge of hazardous materials into the ground, air or water and the health and safety.