Minning Project 2

8/9/2019 Minning Project 2

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Granite Minning Project

Stone Type: Granite, Jet Black

Location: Phulra to Darband Road

Distance from Pakhwal Chowk, Mansehra: 33 Km

Leased Area: 995 Acres. In this lease several sites could be worked out. We are proposinghere one of the best possible site in this total area. Other locations where this stone is

available are there but the slab size is small.

Current Status: Leased in Dec 2008 for 2 years on prospecting licence. When developed,the lease will be extended as per government policy.

Access road to be developed: 1 km for Dumpers

Planned excavation per day: 50 Tones

Approximate dimension per slab: 1x1x3 meter ( approx 9 - 11 tones)

Density of Granite: 2600 2700 kg per cubic meter approximately 3 Tonne per cubic meter

Average ChemicalComposition of Granite

(from Handbook of PhysicalConstants)

Oxide Weight %SiO2 70.18

TiO2 0.39

Al2O3 14.47

Fe2O3 1.57

FeO 1.78

MnO 0.12

MgO 0.88

CaO 1.99

Na2O 3.48

K2O 4.11

H2O+ 0.84

H2O- 0.03

P2O5 0.19

Process of excavation:


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Surface clearing, with compressors, blasting, removal of over burden, drilling etc. The slab

is pulled with pulley/chain or winch and loaded on the dumper.

Current status: The shape of the ridge is as under: The area marked as deposit is visible

solid slab out of mountain. Over this area is over burden and under this area also, which has

to be removed. But this visible area is around 30 40 ft in width and on vertical axis andaround 70 80 ft of horizontal axis. This is visible. And at a gradually increasing hight from

the NSL.

Minimum Requirement of equipment

Compressors 2 Tools Various

Drilling Machines 5 Field Stone Cutter 1

Tripod Pulley 2 Excavator on rent

when required

1

Winch machine 1 Blasting material

Jeep 4 x 4 1 Camping gear etcDumper on rent 2 Hammer of

various sizes,Chiesels

Generator 50 KVA 1

Spare Parts various

Tents 5

Estimated expenses of machinery and Eqpt: Rs 2 . 0 million

Deposit


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Labour

1Miner @ Rs 20,000 per month

Description Nos Rate Total

Miner 1 20,000 PM

Labour 10 400 / day

Driver 1 6000/ PMMechanic 1 7000/ PM

Security Deposit with the lease owner

(refundable / adjustable against excavation of stone) Rs 1.0 million

Royalty per tone: Rs 2000/ per tone or per cubic ft which will be adjusted from the advance

paid to the leaser

Rs 1000 per truck load, notwithstanding with the load or weight to the land owner.

Market SurveySample Exploration and Marketing Survey:

It is not easy to bring sample of at least 1 sft from the deposit. The sample from top surface

will not provide correct information. Top and exposed layer has to be removed at least 4 5 ft before getting sample. A limited controlled blasting etc will be required.

Sample material from 2, 3 points is required to be excavated after removal of top layers ofeither side at least of 4 5 ft in order to have actual stone from the deposit, cut to size,

polished and checked for quality, price, quantity at Abbottabad, Rawalpindi, Lahore,

Karachi.

An estimated expenditure of Rs 100,000/- is required as Sunk cost to assess the feasibility

of the project before committing resources. This will be non recoverable and recommended

to be incurred before launching the whole project, to be spent in order to excavate samplesfrom inner layer. In case of good quality stone, the price will be more.

Ist Phase: Dressed Block of proposed size or 1 cubic meter is excavated and sold in Local

Market, Rawalpindi, Lahore, Karachi as a raw material.

2nd Phase: Export of raw material to Europe, Spain, UK, USA, Germany for statue or

other purpose or finished & polished product in shape of tiles or slabs ( Required to beassessed the feasibility of cutting and polishing on payment in local market)

3rd Phase: Establishment of Granite cutting and polishing factory at Mansehra (Rs 35 M) if

required in a later stage

Company Status: A Private limited company will be established, to be registered with

company registrar. Legal expenses will be required. Name of the company to be decided.

Operations: Joint Account Operation by 2 persons. All business will be done in the name of

the company


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Marketing: Initially efforts will be made by ourselves, then a person will be hired for

marketing and sales in national market. Placement of product information on internet,Arrangement of Cargo shipping agent, transportation, packaging etc.

An Investor is required, who is willing to invest initially Rs 100,000 in order to assescomplete feasibility as discussed earlier and he will be partner in the proposed company.

Share holding and profit distribution after all expenses

Investor (A) 50% Will provide finances

Partner (B) 15 16% Company management, Operations management,

Partner (C) 15 16% Liasion, Marketing, Distribution, other affairs

Lease Partner (D) 18 20 % Site management, excavation, site operation, initiator

Social Responsibility

10 % of overall savings/ profit will be directed for social welfare scheme and balance will

be distributed in proposed share.

Future Investment

Should any other partner decide to invest in the expansion phase of the project, he may doso and will be eligible to receive according to his share of investment in the 50% proceeds

allocated for investor.

Partner (D) will manage site, supervise excavation.Partner B&C, supervise management, expenses, accounts, receipts, marketing, reporting

etc.

Sale is generally on 3/4 week credit.

Basis of Estimates: 50 Tone excavation per day

Estimate of Costs (Rs)Fixed Cost

Sunk Cost 100,000Access Road 500,000 Track for dumpers

Machinery 2,000,000

Spare Parts 50,000

Advance/ Security 1,000,000

Sub Total (A) 3,650,000 Approx Rs 3.65 million


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Operating Cost

Labour cost per day (Rs)

Supervisor 700

Labour 4000

Driver 200

Mechanic 200

Site Expenses per day 1500 Food, tea etcSub Total(B) 6,600 per day

Diesel, oil, R&M etc

Sub Total (C)

3000 per day

1 compressors operating 8-

10 hrs daily and 1

compressors are stand by

Payment to lease owner 100,000 per day 50 tone per day

Total daily expenses 109,600 Say Rs 115,000 ( Maxm)daily

Expenses per tone 115000 / 50 = 2300 per tone For 50 tonne

Note: This estimate is based for very initial operation. More machinery will be requiredlater

Working Capital requirement for 20 days: 115000 x 20 = Rs 2,300,000

Sale Price Analysis

Estimation is based on 50 tone daily production i.e. 50 cubic meter

(A conservative estimate is made. To have a fair estimate of stone price, initial exploration

and investment of Rs 100,000 has been proposed.)

@ 50 tone per day and price at site without transportation charges

@ Rs 6000 per tone @Rs 7000 per tone @Rs 8000 per tone

Sale 300,000 350,000 400,000

Cost 115,000 115,000 115,000

Daily Earning 185,000 235,000 285,000

20 working days per month are planned taking into account week days, rain,

contingencies

Earning per month 3,700,000 4,700,000 5,700,000

3.7 M 4.7 M 5.7 M

Payback period 2 months 1.5 months 1.2.months

Total Fund Requirement inclusive of Fixed cost and working capital

Rs 5.95 million (66875 US $)


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Note: Even if only 25 tones block is produced on daily basis and 20 days a month, the

project is feasible.

2. We are looking for investors for this project to fund Rs 5 million

3. Also looking for buyers for this product in the market

4. Generally in your area, what is the price of black granite as raw material or per cft or per

cubic meter for high, medium and low quality granite to asses the market. The product willhave its price accordingly based on its quality.

Blocks will be excavated in following shapes

Minning Project 2

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