This profile provides for the establishment of kaolin production plant with a capacity of 1300 per year.
Currently, the demand for the proposed product is estimated at 658 tons per year. Demand is expected to reach 2271 tons in 2020. The plant will create employment opportunities for 36 persons.
The total investment requirement is estimated at Birr 9,000,000 euros, of which Birr million is needed for equipment and machinery. The project is financially viable with the internal rate of return (IRR) 15%, and net present value (NPV) of Birr 1.64 million, discounted at a rate of 8.5%.
Description and Application
Kaolin is a clay mineral, silicate, aluminum hydroxide, which corresponds to the chemical formula Al2 (OH) 4Si205. This is a natural product of weathering of granite, prized for its whiteness, purity, and physical and chemical properties. The crude kaolin is a mixture of the three major minerals: kaolin, quartz and mica. This mixture is fed into the processing plant, where kaolin is mined and waste mica and quartz, returned to the pit for backfill.
Kaolin clay is known to many applications in industry, including use as a filler for paper, coating paper, and pigment in the paint industry. In addition, a computer information used in ceramics, plastics and rubber industry, etc.
In the future, the demand for kaolin depends mainly on the growth of end user industries. Consequently, future demand for kaolin depends on national economic growth, particularly in the manufacturing sector.
If we assume that the manufacturing sector will grow at a rate higher than the national average growth of 6-7% in the recent past, the future demand for kaolin is forecast to grow by 10% annually.
Pricing and Distribution
Based on the average CIF price of imported dextrin and other costs (collection, processing, ports, Inland Transport and bank charges) ex-works price offered for the 4250 Birr tone.
Since kaolin is an intermediate product, the product distribution will be more convenient if it is straight. The penetration of the domestic market will help to create awareness through advertising, as well as the implementation of promotional measures.
Plant, Power and Production Program
Power Plant, according to market research above, provided the plant will have a capacity of 1,300 tons of kaolin per year. The plant will operate in one shift of eight hours a day, 300 days a year.
The production program of the plant is to start production by 75% of installed capacity in the first year. It will then raise its capacity to 85% in the second year, and finally to 100% per year, three or more.