SMEDA Chromite Beneficiation Plant
SMEDA Chromite Beneficiation Plant
SMEDA Chromite Beneficiation Plant
May, 2007
Pre-feasibility Study Chromite Beneficiation Plant
DISCLAIMER
The purpose and scope of this information memorandum is to introduce the subject matter and
provide a general idea and information on the said area. All the material included in this
document is based on data/information gathered from various sources and is based on certain
assumptions. Although, due care and diligence has been taken to compile this document, the
contained information may vary due to any change in any of the concerned factors, and the
actual results may differ substantially from the presented information. SMEDA does not assume
any liability for any financial or other loss resulting from this memorandum in consequence of
undertaking this activity. Therefore, the content of this memorandum should not be relied upon
for making any decision, investment or otherwise. The prospective user of this memorandum is
encouraged to carry out his/her own due diligence and gather any information he/she considers
necessary for making an informed decision. The content of the information memorandum does
DOCUMENT CONTROL
Document No. PREF-02
Prepared by SMEDA-Balochistan
Approved by Head of Department
Issue Date March, 2007
Issued by Library Officer
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Pre-feasibility Study Chromite Beneficiation Plant
1 INTRODUCTION TO SMEDA
The Small and Medium Enterprise Development Authority (SMEDA) was established with the
objective to provide fresh impetus to the economy through the launch of an aggressive SME
support program.i1
Since its inception in October 1998, SMEDA had adopted a sectoral SME development
approach. A few priority sectors were selected on the criterion of SME presence. In depth
research was conducted and comprehensive development plans were formulated after
identification of impediments and retardants. The all-encompassing sectoral development
strategy involved recommending changes in the regulatory environment by taking into
consideration other important aspects including financial aspects, niche marketing, technology
upgradation and human resource development.
SMEDA has so far successfully formulated strategies for sectors including, fruits and vegetables,
marble and granite, gems and jewelry, marine fisheries, leather and footwear, textiles, surgical
instruments, urban transport and dairy. Whereas the task of SME development at a broader scale
still requires more coverage and enhanced reach in terms of SMEDA’s areas of operation.
Along with the sectoral focus a broad spectrum of business development services is also offered
to the SMEs by SMEDA. These services include identification of viable business opportunities
for potential SME investors. In order to facilitate these investors, SMEDA provides business
guidance through its help desk services as well as development of project specific documents.
These documents consist of information required to make well-researched investment decisions.
Pre-feasibility studies and business plan development are some of the services provided to
enhance the capacity of individual SMEs to exploit viable business opportunities in a better way.
This document is in the continuation of this effort to enable potential investors to make well-
informed investment decisions.
1
For more information on services offered by SMEDA, please visit our website: www.smeda.org.pk
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Pre-feasibility Study Chromite Beneficiation Plant
3 WHAT IS CHROMITE
The mineral Chromite is an oxide of chromium, iron and magnesium, and, is the only ore of
chromium. It is black or brownish black in color and has a metallic luster. The specific gravity
ranges from 4.3 to 4.6. Although pure Chromite Ore has the form FeOCr2O3 in nature,
magnesium substitutes for chromium. Naturally occurring Chromite mineral is a spinal - group
mineral described by the formula (Fe, Mg), (Cr, Al, Fe)2O3. Chromite ore rarely contains more
than 50% Cr2O3 and other minerals such as Silica (SiO2) are also present.
Chromium is not found as the free metal in nature. The most important ore is Chromite
(FeCr2O4). Chromite is used in the manufacturing of Ferro-chrome alloy, Refractory bricks and
in the manufacturing of chromium based chemicals.
4 PROJECT PROFILE
4. 1 Project Brief
This project is related to setting up a Chromite Beneficiation Plant to enrich the Chromite
content of the ores, liberate them from unwanted rock material and other minerals and eventually
separate the final product into uniform grain sizes. In other words, the purpose of beneficiation is
to render the ore physically and chemically suitable for further treatment.
4. 2 Opportunity Rationale
Pakistan is importing its entire requirements of ferroalloys, basic refractory bricks as well as
chromite chemicals. Although the chromite reserves may not be very large but are substantial
enough to support value added projects to meet the domestic requirements.
Generally high and medium grade ore is exploited and the low grade is left behind – sheer
wastage of resource. This offers a reasonable opportunity for the exploitation/up gradation of
low-grade ore and will go a long way towards the production of value added products – i.e.
concentrates. These concentrates can either be exported at higher price or can be used to produce
value added products –basic refractory bricks, ferroalloys or chromite chemicals. Past
experimentation has established beyond any doubt that the low-grade ore can be up graded
economically. Moreover the refractory plants can suitably use high-grade metallurgical ore
provided the silica contents be reduced to specified limits by the process of beneficiation – less
than 5%. Although small size chromite beneficiation plants are installed at Karachi by the
exporters to upgrade the low-grade ores, which is subsequently blended with the ore meant for
export purposes but establishment of such small sized plants within the mining areas will not
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Pre-feasibility Study Chromite Beneficiation Plant
only eliminate the cost of transportation of wastages but will also create industrial activity in
these remote areas with an added advantage of ensured availability of raw material.
High-grade concentrates can be produced by beneficiating low-grade ores. Again the silica
content of high-grade ore can be reduced to less than 4% by the process of beneficiation, making
these ores suitable for utilization by refractory industry.
4. 3 Proposed Business Legal Status
It is recommended that this project should be started as sole proprietorship or partnership as this
does not involve heavy investment. Moreover, less complications and costs are involved in
forming, administering and running the sole proprietorship or partnership business. The tax rates
applicable for sole proprietorship are lower than private or public limited.
4. 4 Project Capacity and Rationale
The plant would produce 15,000 tonnes of concentrates per annum. The required machinery
details are given under its appropriate head.
4. 5 Project Investment
The total cost of the project is Rs. 12.5 millions. This amount includes the land, machinery,
building, furniture and fixture, and raw material inventory etc. However, the cost of land varies
from area to area.
4. 6 Suitable Location
The area of Muslim-Bagh & Khanozai can be the most suitable location for the installation of
such a plant because of its nearness to the mining area and availability of water and power.
Similarly Dalbandin, Kharan & Wad could also be suitable locations for beneficiation of ore
found in these localities.
4. 7 Key Success Factors / Practical Tips for Success
Traditionally Pakistan has been exporting Chromite to the metallurgical industry alone. The
production of concentrates with low SiO2 content – suitable for utilization by the refractory
industry – will not only open a new export market but will also eliminate the hazard of cyclic
low consumption by the metallurgical industry as well as helping the mining industry for a
continuous outlet of the material albeit at higher prices. Other factors affecting the success of this
business proposition will be:
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Pre-feasibility Study Chromite Beneficiation Plant
In the absence of value added projects in the region, bulk of the ore mined is being exported. The
export earnings from Chromite ore & concentrates during the period 2001-2005 have varied
from US$ 7.002 million to UD$ 32.825 million respectively, i.e. a total 5 years exports estimates
to US$ 83.837 million.3
2
Department of Geological Survey of Pakistan, Quetta
3
Trade Analysis System, (ITC/UNSD) COMTRADE DATABASE SYSTEM
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Pre-feasibility Study Chromite Beneficiation Plant
The Export Earnings of Chromite ore & concentrates from Pakistan in the year 2001-2005 are as
under:
30
25.546
25
20
15 12.902
10
7.002
5.562
5
0
2001 2002 2003 2004 2005
Year
Source: Trade Analysis System (ITC/UNSD) COMTRADE DATABASE SYSTEM
Pakistan is importing its entire requirements of ferroalloys, basic refractory bricks as well as
chromite chemicals. Although the chromite reserves may not be very large but are substantial
enough to support value added projects to meet the domestic requirements.
5. 3 Advantages of the Beneficiation Plant at the Mining Site
Currently the ore is transported and upgraded in the mini beneficiation plants established in
Karachi. This means the impurities in the ore are also transported to Karachi, thus increasing the
transportation costs. Having a plant in Balochistan, near to the mines, would mean that the
impurities get treated at the source and only the end product is transported. This will give savings
to the plant/mine owner in the form of low transportation costs.
The plant will upgrade the low grade Chromite and thus will provide a uniform standard of high
grade material. With the value addition activity being carried out in Balochistan, the stakeholders
in the value chain will be getting higher returns for their input. This will improve the cash inflow
in this sector, thus increasing the importance of the sector. Once this is achieved, the
stakeholders will start improving the current uneconomical practices being carried out in the
industry ensuring continued supply of Chromite to local & international markets.
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6 MARKET INFORMATION
6. 1 Industrial uses of Chromite
The utilization of chromite ores in three main industrial groups in terms of percentages is
provided below:
Metallurgical –About 65 % to 70 % of the entire production is used by this sector alone.
Chemical – this sector utilizes about 15 % to 20 % of the ore produced.
Refractory – about 10 % to 15 % of ore is consumed by this sector.
6.1.1 Metallurgical
Chromium is used in metallurgical industry to produce stainless steel and other special steels.
Addition of small or moderate amount of chromium, with or without other alloying agents
improves the hardness, tenacity, ductility, and the corrosion and oxidation resistance of this
metal. Ferrochrome containing about 70 % - 75 % chromium is added to produce ferro alloys.
The ferrochrome industry utilizes chromite ore containing at least 40 % Cr2O3 and normally
having a Cr:Fe ratio of about 3:1. The ore should be hard, lumpy with minimum quantity of
fines. However, with the development of a new process (agglomeration of the ores and the AOD-
argon-oxygen decarburisation process for the production of stainless steel), an increasing amount
of friable ores and fines as well as ores having very low Cr:Fe ratio – down to 1.6:1 – can now be
used for metallurgical purposes.
Chromium is a constituent of a variety of alloy steels, cast iron, and, non-ferrous alloys,
chromium’s function in these products is to enhance their mechanical properties or to impart
special properties of electrical or abrasive resistance.
6.1.2 Chemical
Chromium pigments represent the largest use of chromium in the chemical industry. Sodium
dichromate – the primary base material for manufacture of chromium chemicals – is used to
manufacture chrome green, chrome oxide green, chrome yellow, molybdenum orange and zinc
chromate pigments. These pigments are used in paints, ink and roofing granules, the familiar
chromium plating used in automobile trim, appliances and other consumer goods is derived from
chemicals. Other uses that take advantage of special properties of these chemicals are in leather
tanning, metal treatment – corrosion, inhibitor – drilling mud’s, textile, dyes, catalysts and wood
and water treatment.
Chromite ores for chemical uses (in the form of concentrates and fines) should contain at least 45
% Cr2O3, not more than 25 % FeO and 8 % SiO2, and a low MgO and S-content.
6.1.3 Refractory
Due to its high melting point, its (nearly) chemical neutrality, and its resistance against acids and
bases at high temperatures, chromite is used in the production of refractories, particularly
production of refractory bricks. The major application of chromite refractories is in iron and steel
processing, non-ferrous alloy refining, glass making and cement processing.
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Pre-feasibility Study Chromite Beneficiation Plant
Chromite ores containing 30 % - 46 % Cr2O3 (and a preferable combine content of Cr2O3 and
Al2O3 in the range of 57 % to 63 %), with 15 – 20 % MgO, a low silica content of up to 5 %
SiO2, and a low iron oxide content of about 15 % are used.
A new field for chromite consumption is in the (steel) foundry industry as a molding medium,
especially where a large scale and close tolerance have to be met. The grain size should be
between 0.1 mm to 0.2 mm. Common specifications for such chromite sands are as follows:
Cr2O3 44 % to 47 %
Fe2O3 18 % to 26 %
SiO2 about 1.5 %
CaO 0.1 % to 0.5 %
MgO 10 %
7 PRODUCTION PROCESS
The methods and the machinery used in the process of beneficiation of chrome ore for high-
grade basic refractory raw material are the following.
7. 1 Crushing
Crushing of lumpy Chrome ore requires Jaw Crushers, Drum Roller Crushers and Hammer
Crushers.
7.1.1 Jaw Crusher
The size and specifications are as Jaws width = 14”, length = 18” and the displacement must be
less than half inch. Motor required for power is about fifteen kilowatts, with a speed of 950 rpm.
7.1.2 Drum Roller Crusher
The diameter of drum must be of 24” and the length of the drum should be of 18”. Two motors
of ten kilowatts are required with a gear transmission and the speed of about 35-rpm.
7.1.3 Hammer Crusher:
The hammer crusher of a normal size is required with a minimum speed, so that a maximum
quantity of coarse size could be achieved. The power that is required for a normal size hammer
crusher is 25 kilowatts with a speed of 950 rpm.
7. 2 Sizing
Vibrating screens are required for sizing both on the initial stage and for the final material. The
size of screens could be from 8’ to 10’ in length and about two and a half feet in width. The
power required for vibrating screens is 3 to 5 kilowatts. The sheets of ready-made screens of the
required size could be attached with this machine. The minimum size of about 80 meshes could
be separated in this type of vibrating screen.
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7. 3 Conveyor Belt
Conveyor belts are required on the feeding and discharge of each machine. Motors required for
the conveyor belts should be about 2 kilowatts with a gear transmission of the speed of about 60-
rpm.
7. 4 Shaking Tables
If a mixture containing mineral particles of different specific gravitates is agitated in water and
then allowed to settle, the heavy particles will sink more rapidly to the bottom layer. Taking
advantage of this phenomenon in its simplest form, the dirt can be washed away to leave the gold
sediment in the pan. When a water/solid mixture flows over the surface of the Table the dense
particles sink in advance as of the lighter particles. The jigging action of the Table causes the
heavy concentrates to progress towards the end of the table, whilst the lighter particles or ‘tailings’
are washed over the lower edge. The table part of the machine, often referred to as the deck, is
normally manufactured from best quality timbers with a 15-mm marine ply surface, and steel
reinforcing where necessary for extra strength. The surface of the Timber deck has a covering of
the material, which acts both as a wearing surface and a waterproof barrier to protect the timber
beneath.
The capacity of full size Concentrating table varies according to the duty. On coarse feeds, up to
one ton (1000 KGs.) per hour of solid can be obtained and even double of the mentioned quantity
when the table is used for roughing work. On more difficult ores, and especially with slims the
capacity may be as low as 5 cwt. (250 KGs. Per hour).
7. 5 Roller Dryer
The ore concentrates from the table are wet and it needs to be dried before the end use. For the
drying purpose a rotary dryer is used.
Rotary dryer is a cylinder, made up of MS. sheet of at least half inch thick. The length of dryer
should be 20 feet and its diameter will be about two and a half feet. The main body of the dryer
is based on four small wheels or rollers, tapering towards the discharge end. Material is fed from
the upper side. The dryer could be rotated with the help of a gear or chain and sprocket, driven
by a motor.
Dryer could be gas fired or fired with furnace oil. The burners are placed at the discharge end
with an air blower, firing upwards to the feeding end. The capacity of the dryer should be two
tons per hour
7. 6 Raw Material Requirement
The basic raw material required is the chromite ore. Balochistan contributes high share in the
overall production of Chromite in the country. The chromite reserves are located in the areas of
Muslim Bagh, Khanozai, Dalbandin, Kharan and Wad.
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8 MACHINERY REQUIREMENT
The main equipments required for running the chromite beneficiation plant are listed in the table
8-1 below:
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11 PROJECT ECONOMICS
11.1 Project Cost
Capital Investment Rs. in actual
Land 2,100,000
Building/Infrastructure 1,660,000
Machinery & equipment 2,360,000
Furniture & fixtures 355,000
Office equipment 291,000
Pre-operating costs 730,000
Total Capital Costs 7,496,000
Working Capital Rs. in actual
Equipment spare part inventory 419,271
Raw material inventory 3,941,146
Upfront insurance payment 118,000
Cash 500,000
Total Working Capital 4,978,417
Total Investment 12,474,417
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12 FINANCIAL ANALYSIS
12. 1 Project Cost
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Pre-feasibility Study Chromite Beneficiation Plant
Revenue 70,437,500 87,740,625 103,703,906 109,395,563 114,865,341 120,608,608 126,639,038 132,970,990 139,619,539 146,600,516
Cost of goods sold 60,001,250 74,540,138 87,927,609 92,858,380 97,614,673 102,617,850 107,880,983 113,417,850 119,242,987 125,371,720
Gross Profit 10,436,250 13,200,488 15,776,297 16,537,183 17,250,668 17,990,757 18,758,056 19,553,140 20,376,552 21,228,796
Other income 17,500 4,782 67,488 150,889 198,128 245,331 284,689 302,854 299,780 1,007,608
Gain / (loss) on sale of assets - - - - - - - - - -
Earnings Before Interest & Taxes 7,882,225 10,481,674 12,960,338 12,808,217 13,414,524 14,180,430 14,805,710 15,422,491 16,030,080 17,359,837
Tax 2,910,195 4,045,777 5,105,022 5,067,619 5,336,400 5,672,172 5,922,284 6,168,996 6,536,583 6,982,627
NET PROFIT/(LOSS) AFTER TAX 4,365,293 6,068,665 7,657,533 7,601,428 8,004,600 8,508,258 8,883,426 9,253,495 9,493,498 10,377,210
Balance brought forward 4,365,293 7,303,771 10,472,913 12,652,038 14,459,647 16,077,533 17,472,672 18,708,317 28,637,741
Total profit available for appropriation 4,365,293 10,433,958 14,961,304 18,074,341 20,656,638 22,967,905 24,960,960 26,726,166 28,201,814 39,014,951
Owner's withdrawals - 3,130,187 4,488,391 5,422,302 6,196,991 6,890,371 7,488,288 8,017,850 8,460,544 11,704,485
Balance carried forward 4,365,293 7,303,771 10,472,913 12,652,038 14,459,647 16,077,533 17,472,672 18,708,317 19,741,270 27,310,466
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Pre-feasibility Study Chromite Beneficiation Plant
Assets
Current assets
Cash & Bank 500,000 - 136,633 1,791,609 2,519,515 3,141,281 3,868,178 4,265,788 4,387,182 13,074,444 18,478,090
Accounts receivable - 5,789,384 6,500,471 7,867,583 8,757,512 9,216,201 9,677,012 10,160,862 10,668,905 11,202,351 11,762,468
Finished goods inventory - 2,608,750 3,122,100 3,680,691 3,869,099 4,067,278 4,275,744 4,495,041 4,725,744 4,968,458 5,223,822
Equipment spare part inventory 419,271 548,379 680,557 753,804 831,069 916,253 1,010,169 1,113,712 1,227,867 1,353,723 -
Raw material inventory 3,941,146 5,154,762 6,397,235 7,085,756 7,812,046 8,612,780 9,495,590 10,468,888 11,541,949 12,724,999 -
Pre-paid annual land lease - - - - - - - - - - -
Pre-paid building rent - - - - - - - - - - -
Pre-paid lease interest - - - - - - - - - - -
Pre-paid insurance 118,000 106,200 94,400 82,600 70,800 59,000 47,200 35,400 23,600 11,800 -
Total Current Assets 4,978,417 14,207,474 16,931,396 21,262,043 23,860,040 26,012,794 28,373,893 30,539,691 32,575,247 43,335,775 35,464,380
Fixed assets
Land 2,100,000 2,100,000 2,100,000 2,100,000 2,100,000 2,100,000 2,100,000 2,100,000 2,100,000 2,100,000 2,100,000
Building/Infrastructure 1,660,000 1,577,000 1,494,000 1,411,000 1,328,000 1,245,000 1,162,000 1,079,000 996,000 913,000 830,000
Machinery & equipment 2,360,000 2,124,000 1,888,000 1,652,000 1,416,000 1,180,000 944,000 708,000 472,000 236,000 -
Furniture & fixtures 355,000 337,250 319,500 301,750 284,000 266,250 248,500 230,750 213,000 195,250 177,500
Office vehicles - - - - - - - - - - -
Office equipment 291,000 261,900 232,800 203,700 174,600 145,500 116,400 87,300 58,200 29,100 -
Total Fixed Assets 6,766,000 6,400,150 6,034,300 5,668,450 5,302,600 4,936,750 4,570,900 4,205,050 3,839,200 3,473,350 3,107,500
Intangible assets
Pre-operation costs 730,000 584,000 438,000 292,000 146,000 - - - - - -
Legal, licensing, & training costs - - - - - - - - - - -
Total Intangible Assets 730,000 584,000 438,000 292,000 146,000 - - - - - -
TOTAL ASSETS 12,474,417 21,191,624 23,403,696 27,222,493 29,308,640 30,949,544 32,944,793 34,744,741 36,414,447 46,809,125 38,571,880
Other liabilities
Lease payable - - - - - - - - - - -
Deferred tax - 479,100 486,200 493,300 500,400 507,500 420,200 332,900 245,600 158,300 71,000
Long term debt 4,962,888 2,084,299 1,648,192 1,159,752 612,699 - - - - - -
Total Long Term Liabilities 4,962,888 2,563,399 2,134,392 1,653,052 1,113,099 507,500 420,200 332,900 245,600 158,300 71,000
Shareholders' equity
Paid-up capital 7,511,528 7,511,528 7,511,528 7,511,528 7,511,528 7,511,528 7,511,528 7,511,528 7,511,528 7,511,528 7,511,528
Retained earnings - 4,365,293 7,303,771 10,472,913 12,652,038 14,459,647 16,077,533 17,472,672 18,708,317 19,741,270 27,310,466
Total Equity 7,511,528 11,876,821 14,815,299 17,984,441 20,163,567 21,971,175 23,589,062 24,984,200 26,219,845 27,252,798 34,821,994
TOTAL CAPITAL AND LIABILITIES 12,474,417 21,191,624 23,403,696 27,222,493 29,308,640 30,949,544 32,944,793 34,744,741 36,414,447 37,912,653 44,704,614
Note: Total assets value will differ from project cost due to first installment of leases paid at the start of year 0
- - - - - - - - - 8,896,471 (6,132,734)
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Pre-feasibility Study Chromite Beneficiation Plant
- - - - - - - - - 8,896,471 (6,132,734)
Operating activities
Net profit - 4,365,293 6,068,665 7,657,533 7,601,428 8,004,600 8,508,258 8,883,426 9,253,495 9,493,498 10,377,210
Add: depreciation expense - 365,850 365,850 365,850 365,850 365,850 365,850 365,850 365,850 365,850 365,850
amortization expense - 146,000 146,000 146,000 146,000 146,000 - - - - -
Deferred income tax - 479,100 7,100 7,100 7,100 7,100 (87,300) (87,300) (87,300) (87,300) (87,300)
Accounts receivable - (5,789,384) (711,087) (1,367,113) (889,929) (458,689) (460,810) (483,851) (508,043) (533,445) (560,118)
Finished good inventory - (2,608,750) (513,350) (558,591) (188,409) (198,179) (208,466) (219,297) (230,703) (242,714) (255,364)
Equipment inventory (419,271) (129,108) (132,178) (73,247) (77,265) (85,185) (93,916) (103,542) (114,155) (125,856) 1,353,723
Raw material inventory (3,941,146) (1,213,616) (1,242,473) (688,521) (726,290) (800,735) (882,810) (973,298) (1,073,061) (1,183,050) 12,724,999
Pre-paid building rent - - - - - - - - - - -
Pre-paid lease interest - - - - - - - - - - -
Advance insurance premium (118,000) 11,800 11,800 11,800 11,800 11,800 11,800 11,800 11,800 11,800 11,800
Accounts payable - 5,182,964 1,271,042 1,130,995 446,974 438,894 464,662 492,110 521,362 552,553 (689,935)
Other liabilities - - - - - - - - - - -
Cash provided by operations (4,478,417) 810,149 5,271,368 6,631,807 6,697,260 7,431,457 7,617,268 7,885,898 8,139,244 8,251,335 23,240,866
Financing activities
Change in long term debt 4,962,888 (2,878,590) (436,107) (488,440) (547,053) (612,699) - - - - -
Change in short term debt - 1,568,440 (1,568,440) - - - - - - - -
Change in export re-finance facility - - - - - - - - - - -
Add: land lease expense - - - - - - - - - - -
Land lease payment - - - - - - - - - - -
Change in lease financing - - - - - - - - - - -
Issuance of shares 7,511,528 - - - - - - - - - -
Purchase of (treasury) shares - - - - - - - - - - -
Cash provided by / (used for) financing activities
12,474,417 (1,310,149) (2,004,547) (488,440) (547,053) (612,699) - - - - -
Investing activities
Capital expenditure (7,496,000) - - - - - - - - - -
Acquisitions - - - - - - - - - - -
Cash (used for) / provided by investing activities
(7,496,000) - - - - - - - - - -
NET CASH 500,000 (500,000) 3,266,821 6,143,367 6,150,207 6,818,758 7,617,268 7,885,898 8,139,244 8,251,335 23,240,866
Cash balance brought forward 500,000 - 136,633 1,791,609 2,519,515 3,141,281 3,868,178 4,265,788 4,387,182 13,074,444
Cash available for appropriation 500,000 (0) 3,266,821 6,280,001 7,941,817 9,338,273 10,758,549 11,754,076 12,405,032 12,638,517 36,315,309
Owner's withdrawals - - 3,130,187 4,488,391 5,422,302 6,196,991 6,890,371 7,488,288 8,017,850 8,460,544 11,704,485
Cash carried forward 500,000 - 136,633 1,791,609 2,519,515 3,141,281 3,868,178 4,265,788 4,387,182 4,177,972 24,610,824
17
BAL-PREF-01/Feburary, 2004
Pre-feasibility Study Chromite Beneficiation Plant
13 KEY ASSUMPTIONS
Table 13.1 Production related Assumptions
Production capacity (tonns per year) 15,000
Sale price per unit in year 1 7,000
Sale price growth rate 5%
Production capacity utilization 70%
Production capacity utilization growth rate 10%
Maximum capacity utilization 90%
18
BAL-PREF-02/March, 2004