ID: 20854

27.02.20

Investment projects and startups in Ukraine

Management of industrial excavation of labradorite natural stone

Investment project for the industrial excavation of labradorite natural stone in Zhytomyr region (Ukraine)

Location:

Kam'yanyi Brid, Zhytomyr Oblast, Ukraine, 12131

  • Sector: Mining
  • Business activity: Extraction of other minerals
  • Stage: Growth or Expansion
  • Required investments: $142 000
  • Type of investment: Equity

The main activities of the company are the industrial production of labradorite natural stone, the sale of quarried stone blocks, as well as the sale of its processing results.

The company was founded in 2003 as OPTIMA Limited Liability Company.

In the period from 2003 to 2007, the company was engaged in processing and obtaining permits for the development and subsequent excavation of natural resources.

In 2007, the company got a license for the use of Optima deposit (village of Kamianyi Brid, Volodarsk-Volynskyi (later Khoroshiv) district) for a period of 17 years.

Location:

Geographically, the quarry is located in the village of Kamianyi Brid, Khoroshiv district, Zhytomyr region (+ 50 ° 37 '14.48 ", + 28 ° 42' 1.76").

The quarry is located 40 km from E40 international highway and 45 km from the city of Zhytomyr, as well as 50 km from E373 highway.

Characteristics of Optima deposit:

The Optima labradorite and gabbroic anorthosite deposit is located in Khoroshiv district of Zhytomyr region, 40 km from E40 international highway, 50 km from E373 highway, 5 km from Zhytomyr-Korosten highway, 4 km from Fasova railway station and 45 km from the city of Zhytomyr

The main activities:

- industrial production of labradorite natural stone;

- sale of quarried stone blocks;

- sale of the processing results of labradorite natural stone.

Product description:

Nowadays, there are more than 8000 varieties of natural stone in the world. The most widely used of them are:

  • marble;
  • granite (including labradorite);
  • slate;
  • limestone;
  • sandstone.

Labradorites belong to the class of the most valuable in the decorative sense and expensive natural stones. Architects, builders and designers use it to decorate both the exterior and interior of buildings – stone surfacing, decoration of floors and walls, fireplaces, columns, vases, sculptures, kitchen worktops, etc., as well as paving stones, road slabs and curbs.

Land plot of 5 ha is leased. Lease Agreement dated June 30, 2011.

Electricity and water supply of the quarry:

The quarry is provided with electricity under the Service Agreement, with a capacity of 150 kW.

Water supply to the quarry is provided from the Trostyanytsia River.

Current state of production and tasks:

Currently, production costs do not exceed UAH 70-100 thousand at a normal level of UAH 400-500 thousand per month. The result is a low volume of production of commodity blocks – about 15-20 cu.m. per month instead of potential 80 cu.m. and high cost of price.

The first rocks reservoir horizon was selected until 2018. It has a fracture and decorativeness on dimension stone quarries, which is inferior to the underlying second horizon. When passing the first horizon, the problem of promoting Optima labradorite on the market and its recognition was solved. 

Since February 2018, work has been carried out on the construction of the second reservoir horizon, during which there is usually a technological reduction in production and, accordingly, a drop in sales along with the washing out of working capital. Currently, the second reservoir horizon is ready to be brought into operation; a mining wall with a height of 6 m is built.

In order to reach the optimum capacity, it is necessary to conduct:

  1. Replenishment of working capital;
  2. Repair of existing technological equipment;
  3. Purchase of additional new or used equipment;
  4. Recruitment of a sufficient number of skilled workers.

The list of equipment available:

  • PKS-10 compressor –replacement and repair is required
  • Sawmill
  • CAT-980G wheel loader – repair is required
  • COMMANDO 110 self-propelled drilling rig – repair is required
  • Front loader pitchfork
  • Mackay-7750 diamond and rope stone-cutting machine – replacement is required
  • Utility rooms 6x3 m., 4 rooms.
  • UB-90 drilling rig – repair is required
  • UB-40 drilling rig
  • fast make-up connection
  • Refueling station
  • Fire iron
  • Front loader pitchfork – 2 pcs.
  • Receiver
  • Traction rope winch
  • Sharpening machine
  • Welding transformer
  • Container
  • Hydraulic pump
  • Volvo EC360 hydraulic excavator – repair is required
  • PTS No. 417

Advantages:

  • a rare variety of labradorite. Vast markets for blocks and processed products sales (Ukraine, Europe, China, India);
  • the deposit was not previously developed by third parties, which eliminates the risk of using obsolete explosive technologies and drilling induced fractures on the blocks;
  • availability of developed infrastructure of the region and provision of labor resources in the region;
  • availability of experienced technical managers.

Investment offer:

  1. Entry into equity in the capital of the enterprise
  2. The provision of borrowed capital with a fixed interest rate for a period of 1.6 years

Location

Contacts

Роман Кантаровский

[email protected] +380663226144

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