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

  
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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