ID: 23533

26.03.21

Investment projects and startups in Ukraine

Saponite mining and saponite flour production

Sale of assets for the implementation of a saponite mining project in Khmelnytskyi region and the production of saponite flour

Location:

Славутский район, Хмельницкая область, Украина

  • Sector: Mining
  • Business activity: Extraction of other minerals
  • Stage: Early Stage
  • Project cost: $2 825 000
  • Required investments: $1 749 948
  • Type of investment: Equity

About the product

Saponite is an alkaline aluminosilicate with high adsorption and ion-exchange properties. The chemical composition of the saponite lattice of these deposits is as follows: Mg3 [Si4O10] (OH) ´H2O. In addition to MgO (the content of which is 8-11%), the composition of Ukrainian saponite clays includes such elements necessary for the animal body as iron, calcium, potassium, sulfur, sodium, manganese, boron, nickel, copper, zinc, etc.

Saponite is used in medicine, food, chemical, consumer goods industry and agriculture. It is an ideal addition to animal feed for cattle, pigs, poultry and other animals. It is used in the production of dietary supplements, improves the quality of the soil, increases the yield of grain, increases the shelf life of the crop, etc.

The inclusion of 15 g of saponite in 1 kg of compound feed for pigs leads to an increase in their productivity by 19.5%. Adding saponite flour to the compound feed for suckling pigs at the rate of 0.5 g / kg of live weight helps to reduce animal mortality by 8.5%. The introduction of saponite in broiler chicken feed in the amount of 1.5-2% leads to an increase in live weight gain by 4.45% and a decrease in feed costs by 4.19%. The inclusion of 2-2.5% of saponite in the mixed feed of laying hens leads to an increase in egg production by 3.8-6.4%, as well as to a decrease in the number of broken eggs by 2.9%. Feeding cows with 20-25 g of saponite per 100 kg of live weight is accompanied by an increase in average daily milk yield by 3.4-5.6%.

The well-known and widely used analogues of saponite are zeolites. However, saponite has several advantages:

  • the cost of the mined saponite of the Tashkovske area of ​​the Varvarovske field is lower;
  • unlike zeolite, which has acicular crystals, saponite belongs to layered aluminosilicates, which makes it safe for internal consumption;
  • in saponite, some macro- and microelements, when interacting with the internal environment of the body, acquire mobile forms and can be actively absorbed;
  • saponite clay contains a large amount of essential elements that animals need for growth and development – magnesium, iron, zinc;
  • in saponite, macro- and microelements are in a more mobile form.

When using saponite, it is possible to reduce the cost of compound feed by saving on the purchase of premixes and mycosorbents. When fattening animals, it is possible to replace 20-30% of the premix used in the preparation of balanced feed with saponite. The mycosorbents can be completely replaced. Thus, the result of adding saponite flour to animal feed can lead to a significant reduction in the cost of feeding them with a guaranteed improvement in productivity and quality of feeding.

Field

In Ukraine, the Tashkovske and Varvarovske deposits have been explored, which are located in Slavutsk district of Khmelnitskyi region.

Location: Slavutsk district, Khmelnytskyi region. Logistics is convenient for both railway and road transport.

The company is the sole owner of exclusive rights for the development (exploration and production) of the only in Ukraine and the largest in the world Varvarovske deposit of saponite clays.

Surface layer. There is no influx of groundwater. The extraction of the mineral does not require additional costs and is in harmony with the environment - without drilling and explosions, in an open way!

The volume of open rocks in the contour of the open pit is 656 thousand cu.m. Such a volume of highly promising and not requiring significant additional investments in the development of the site and the extraction of rocks, according to the plans, will be enough for 30 years of the enterprise's activity.

Simple production technology (information available upon request).

Experience and practices

The company owns all information data – research and development related to the study of the practical use of saponite in various sectors of the economic complex.

Sales of products in Ukraine (over 100 clients), export deliveries of products to EU countries. Sales volume – 150 tons / month.

Economic efficiency of the project

The economic efficiency is confirmed by calculations performed in two business plans. The efficiency of the project will depend on the development strategy of the enterprise:

Option 1. A low-budget solution for the grinding complex produced by SHIBANG MACHINERY. Purchase of used equipment for the extraction and delivery of the product. Construction of all the necessary infrastructure solutions, supply of utilities.

Investment plan – USD 1,749,948.

Payback period, PP – 59 months.

Average rate of return, ARR – 43.18%

Net present value, NPV – USD 5,078,600

Option 2. The solution for the grinding complex from the # 1 vendor in the world – "LOESCHE". Equipment from the world's leading manufacturers. Construction of all the necessary infrastructure solutions, supply of utilities, asphalting of the road.

Investment plan – USD 3,815,402.

Payback period, PP – 79 months.

Average rate of return – 19.99%

Net present value, NPV – USD 2,535,577

Detailed information about the project including a business plan is available upon request.

Subject of sale

  • Exclusive rights for exploration and production of saponite from Varvarovske deposit. Reserves – 30 million tons.
  • Mineral mining license (special permit for the right to industrial mining of the saponite mineral No. 6155 of 2016).
  • Information materials about saponite – quality certificates, technical specifications, research and development, as well as patents, test reports and rights to publication.
  • Customer base with CRM system.
  • Business plans (2 pcs.) With calculations of economic efficiency for two options for the development of the enterprise.

Price: EUR 2,500,000

Subject matter of the transaction: assignment of corporate rights

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