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ID 121642

Ferrochrome Extraction Plant And Brick Making Plant Crushing And Screening

Posted By Owner / Shareholder (Date of Submission: 10/11/2016)
Steelpoort, Limpopo, South Africa
R50,000,000

Description
The Company

INTSIMBI AYI GOBEKI (Pty.) Ltd. is a 100% black owned corporation that is pursuing a project that is designed to recycle a waste by-product of the ferrochrome smelting industry to produce economically useful products that will contribute greatly to the government sponsored Infrastructure Development Program. INTSIMBI has entered into and signed an agreement to procure and re-process the historic ferrochrome slag dump at Tubatse Ferrochrome Smelter in Limpopo, and produce a whole range of value-added products from the slag for sale on the open market. It must be emphasized that the waste slag will be made available to INTSIMBI for a long term basis.

The Objectives

• To obtain the necessary start-up capital of R50 million to facilitate plant and equipment acquisition, initially for the first two phases of the project, namely Phase’s I & II.
• To acquire the earth moving equipment for feeding the plant & move the discard.
• To maintain the business momentum and excellence in the short term.
• To contribute to the development of the country’s social and economic infrastructure by producing goods and products needed by the participating industries.

The Market

According to the agreement between INTSIMBI and TFC the project will be able to procure and be supplied with all their slag requirements from the available historic stockpiles (currently standing at approx.9 million tons) at a rand per ton on condition that we arrange our own transport. The resultant value-added products extracted from the slag waste will be sold on the open market at competitive prices that ensure the viability and sustainability of the project. The target market for our products will be the Building & Construction Industry, the Road Construction and Repair Industry, the Underground Mining Industry as well as the Corrosion Engineering Industry. Although our marketing efforts will initially target businesses in the Limpopo / Mpumalanga / Gauteng regions, our long term plan is to expand our market to all the other regions and provinces of South Africa and beyond.
The Finance

Ideally, the business requires at least R50 million to acquire the necessary plant and equipment to kick start the processing of the slag dump (approx. 15 million tons available). This initial capital investment is required to launch and sustain Phase I & II of the business. The figure includes the cost of purchasing all the capital plant and equipment needed, including the earth moving machines required for operational purposes, e.g. Front-end Loaders, Dumper trucks, Tipper trucks, forklifts etc as well as for the leasing of a 4 hectare industrial plot to set up the production facilities. This amount will be sufficient both to sustain a positive cash balance and to make a profit. The promoters of this project are expecting to finance the acquisition using borrowed funds which are to be paid back within a maximum five year period. The project is expected to generate profits well in excess of R10 million in the first year alone.
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(Manufacturer)
Benoni, Gauteng
South Africa South Africa
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