Business Plan for
Exploiting and Processing Plant
COPYRIGHT This business plan is an intellectual property of Linh Thanh Quang Binh Joint Stock Company. It, therefore, must not be copied, reproduced, sold, leased, transferred, reused; in whole or in part, unless granted official written consent from and by Linh Thanh Quang Binh Joint Stock Company.
1. INTRODUCTION THE PROJECT PROJECT OWNER PROJECT’S GOALS
2. LEGAL BASIS OF THE PROJECT
4. MARKET ANALYSIS QUICKLIME HYDRATED LIME PRECIPITATED CALCIUM CARBONATE NANO PRECIPITATED CALCIUM CARBONATE
5. COMPETITION ANALYSIS QUICKLIME HYDRATED LIME PRECIPITATED CALCIUM CARBONATE NANO PRECIPITATED CALCIUM CARBONATE
6. SWOT ANALYSIS STRENGTHS WEAKNESSES OPPORTUNITIES THREATS
7. IMPACT ON ENVIRONMENT AND SOLUTIONS EXISTING SITUATION IMPACT ON ENVIRONMENT AND SOLUTIONS
8. THE PROPOSED PLANT LOCATION AND LAND RESERVE OF INPUT MATERIAL THE TECHNOLOGY PLANNED PRODUCTION CAPACITY PROJECTED PRODUCTION SCHEDULE
9. SALES FORECAST
10. PROJECT FINANCING CAPITAL STRUCTURE AND SOURCES LOAN
13. PROFITABILITY DISCUSSION
14. INVESTMENT APPRAISAL
15. CONCLUSION AND RECOMMENDATION
As demand for high quality lime products has escalated dramatically over the last few years, while production onshore is still heavily relying on traditional method carrying out by small-scale kilns operated by households or small-sized proprietors with extremely high level of environment contamination. Further, such supply can, by no means, satisfy market demand, resulting in a huge amount of lime imported. As one might expect, lime is a bulk product that have proved to be uneconomical if shipped for long distances. Import of this input material has, therefore, caused the output products to be incurred considerably high cost price. Reserves of calcium carbonate, the core material for manufacturing lime of all kinds, are more than adequate in Vietnam; yet the obsolete technologies currently embraced by Vietnamese manufacturers have so far undermined the capacity and quality of supply across the nation. This triggers a necessity of investment in advanced technology and production line for the sake of relieving domestic usersâ€™ dependence on imported lime. Indeed, Linh Thanhâ€™s project of Calcium carbonate Exploiting and Processing Plant in Quang Binh with capacity, in full, of more than 1 million metric tons per year could be a sound solution for the Vietnam market. Given the total reserve of standard limestone of 58,600 million cubic metres on site, the supply of input material is virtually very much abundant. The mining area, moreover, is opencast and only 800 metres away from the manufacturing plant. Mining conditions are favourable as the location is close to power grid and road network, yet far from residential areas. Especially, the mining area is located in an isolated valley, thereby having much less impact in respect of noise, dust, and vibrations on the plant area and surrounding environment. As this project is in effect, continuous kiln technology shall be implemented for the very first time in Vietnam, solving the problem entailing the current traditional kiln method. Equipment and technology which are supplied and transferred respectively by a globally reputed Italian company can meet most customer demands. The total investment cost of this Project is estimated to be approximately USD 60 million, for which USD 36.5 million shall be raised from loans, USD 4 million shall be funded by equity, and the remainder shall be financed by retained earnings and short-term loans. The investment is entitled to corporate income tax holiday for 04 years from the first profit making year and a reduction of 50 percent for the following 09 years. In respect of other income, the Company shall apply the income tax rate of 25 percent. Net Present Value is computed to be around USD 483.5 million which is highly positive, and the Internal Rate of Return to be approximately 72 percent which is more than ten times the required rate of return of 7 percent Such calculations, carried out with utmost meticulousness, strongly suggest that the project is highly feasible and well worth undertaking. In recapitulation, this is (1) a project implementing breakthrough technology, backed by quite a number of other advantages, that might help reform the market of calcium carbonate products in Vietnam, and (2) a worthwhile investment with extremely handsome return for devoted investors.
VIETNAM MINING CORPORATION
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