Brief Profiles Of Investment Projects
For China's Agenda 21

 

Title High Grade Refractory Materials
Type New production utilising mineral resources
Description   
The rich and abundant resources of non-metallic refractory minerals in the Nanyang area of Henan province, kyanite, sillimanite and andalusite, will be exploited intensively. A plant will be constructed to refine these minerals to produce 20,000 tons per year of high-grade refractors and approximately 20,000 tons of other new products, semi-finished, refractory fabrics, blast furnace brick, etc. The process generally involves mining, dressing, calcining and moulding.
Rationale   
In the Nanyang area, the reserves of kyanite, sillimanite and andalusite are abundant and of excellent quality. The proven reserve of these minerals is over 113 million tons. The current demand for refractors is about 1.5 million tons per year in China; current production can not meet the demand. The project can serve as a demonstration of proper exploitation of natural resources in this area. Projections indicate that the project will be substantially profitable.
Products   

Refined minerals: 20,000 tons per year

Other semi finished and finished high-grade refractory products, e.g. refractory brick, refractory fabric: 20,000 tons per year

Location Nanyang city, Henan province
Available Information Pre-feasibility Study, Detailed Project Description, Technical Study, Market Study
Total Investment (US$)

9.62 million

Foreign Currency (US$)

2 million

Financing

Co-operation Sought

Total Equity (US$)

7 million

Joint Venture

Of which Equity Foreign Partner (US$)

5 million

Compensation Agreement

Loan (US$)

2 million

  
Others(specify) (US$)

0.62 million

  
Indicators of Viability

Pay-back Period: 4 Years; Return on Investment: 23%;

Output Value: US$ 10 million per year.

INFORMATION ON SPONSOR

Name Yunyang Iron and Steel General Works, Nanyang Tel +86-377-6661104
Address Yunyang town, Nanzhao county, Henan province Fax +86-377-6661171
Annual Turnover (US$) 1993 20 million 1994 24 million 1995 24 million
Year of Establishment 1970 No. of Employees 3540 Ownership State
Fixed Assets (US$) 21 million Registered Capital (US$) 5.48 million
Land (ha.) 82 Building (m*m) 36 Equipment (US$) 1,400

 


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