| Brief Profiles Of Investment Projects
For China's Agenda 21 |
| Title | Production of Kaolin | ||||||||||||||||||||||
| Type | New project to produce paper whitening materials by utilising kaolinite resources | ||||||||||||||||||||||
| Description | |||||||||||||||||||||||
| Kaolinite deposits in the coal mine in Datong, Shanxi province will be exploited to produce paper-making grade Kaolin, a high quality paper whitener, and calcined kaolin filler. A plant will be constructed near Datong mine. Research has shown that the process is relatively simple and easily commercialised. Planned production is 4,060 t/y paper-grade kaolin and 4,390 t/y of calcined kaolin filler. | |||||||||||||||||||||||
| Rationale | |||||||||||||||||||||||
| Datong has very rich Kaolinite deposits, with proven reserves of more than two billion tons. The plant will consume 10,000 tons of kaolinite per year. The content of Kaolin in the ore body is as high as 98%. Al2O3 content is over 38.5%. The content of impurities is very low, e.g. Fe2O3 < 0.3%. TiO2 < 0.1%. The material has high brightness and 98% of the particles are < 2 microns. The product is in short supply so the demand is quite huge both in domestic and international markets. The project also can contribute to reducing pollution of the coal mining industry. The projected profitability of the project is substantial. | |||||||||||||||||||||||
| Products | |||||||||||||||||||||||
Kaolin paper whitener: brightness >= 90%, capacity: 4,060 ton, 80% for export Kaolin filler: brightness >= 87%, capacity: 4,390 ton, 50% for export | |||||||||||||||||||||||
| Location | Datong city, Shanxi province | ||||||||||||||||||||||
| Available Information | Pre-Feasibility Study, Technical Study | ||||||||||||||||||||||
| Total Investment (US$) | 6.5 million |
Foreign Currency (US$) |
2.50 million | ||||||||||||||||||||
Financing |
Co-operation Sought | ||||||||||||||||||||||
| Total Equity (US$) | 5.5 million |
Joint Venture | |||||||||||||||||||||
| Of which Equity Foreign Partner (US$) | 2.65 million |
Equipment Purchase | |||||||||||||||||||||
| Loan (US$) | 1 million |
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| Others(specify) (US$) | |||||||||||||||||||||||
| Indicators of Viability | Pay- back Period: 6 years; IRR: 28%; Output Value: US$ 3.5 million per year | ||||||||||||||||||||||
INFORMATION ON SPONSOR | |||||||||||||||||||||||
| Name | Institute of Multipurpose Utilisation of Mineral Resources in Zhengzhou | Tel | +86-371-8984964 ext. 8043 | ||||||||||||||||||||
| Address | Zhengzhou city, Henan province | Fax | +86-371-8984942 | ||||||||||||||||||||
| Annual Turnover (US$) | 1993 | 0.36 million | 1994 | 0.54 million | 1995 | 0.24 million | |||||||||||||||||
| Year of Establishment | 1956 | No. of Employees | 250 | Ownership | State | ||||||||||||||||||
| Fixed Assets (US$) | 3.47 million | Registered Capital (US$) | 72 thousand | ||||||||||||||||||||
| Land (ha.) | 5.1 | Building (m*m) | 8560 | Equipment (US$) | 1 million | ||||||||||||||||||
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