Cement Copper in Zambia
“Rare Opportunity Found in Cement Copper Production”
The global refined copper market continues to expand as there’s an apparent demand. Market surveys carried out specifically in Zambia also show that customer demand for cement copper is continually exceeding quota allocation for the product. This is in due part to the expansion of multiple industries, many of whom have workers that are in great need of this powder formed material. So, as you can see, the market for copper is interestingly poised.
Supply from new mines and higher utilization of smelters could greatly increase the overall output.
Zambia has a population of over 14 million, and is currently Africa’s largest producer of copper. The economy is growing at a substantial rate with average annual real GDP growth in excess of 6% since 2005. Zambia is also endowed with vast reserves of oxide copper ores which are being worked by mostly ill-financed small scale miners.
Because of that, our company plans to embark on a joint venture project to buy and process the oxide copper ore produced by the small scale miners to process and produce cement copper for sale. The plan is to pre-finance ten small scale oxide copper ore miners in Zambia in an arrangement whereby we will be the sole buyer of the oxide copper ore produced. That is where we’ve shifted our undivided attention.
Our new-found focus on cement copper production is our next move forward. The projected increase in demand is partly resulting from the ambitious infrastructure development projects being spearheaded by the Zambian Government, and other direct investments. Both bilateral and multilateral assistance from developed nations are making its way here as well. But, it’s very clear, that production volumes of cement copper from existing local manufacturers do not meet fully the demand growth for the next 10+ years.
USE OF FINANCING
It is proposed that a total of 3,000 tons of copper ore of an average grade of 5% Cu will be processed to produce 100 tons of cement copper grade of 75% Cu monthly. The oxide copper ore will be bought at US$100/t and the cement copper will be sold at US$3,250/t. Great margins no matter how you look at it.
The project needs a sum of USD $550,000 as seed money of which USD $500,000 is a capital investment for setting up the copper processing plant consisting of a crushing plant, a leaching plant and a cementation plant.
Additionally, about USD $50,000 will be used to pre-finance ten small scale oxide copper mining operations.
Monthly operation cost for the project will be US$325,000.
We expect to earn at least USD $650,000 monthly from the sale of 200 tons of cement copper powder
This project has a pay-back period of four (4) months.
There are many oxide copper ore deposits in Zambia which can be worked profitably on a small scale. The issue here is that most small scale miners are unable to systematically carry out the mining operations due to lack of funding. If sufficiently funded and properly managed, then these small scale operations could produce oxide copper for larger scaled copper refining operations. And do it quite effectively, too.
Therefore, we have planned to pre-finance the ten best small scale oxide copper mines in an arrangement whereby it shall be the sole buyer of the oxide copper ore produced. This could offer thousands of marginalized people a sustainable livelihood, while filling the serious knowledge gaps in the sector.
As a result, miners will get instant access to the financial services, market information, technology and geological data that would enable all of us to make the most money while minimizing environmental impacts.
In fact, our management team is comprised of experts and will share good hands-on experiences and innovation on the ground to improve the overall sector and its workers.
These ten small scale oxide copper ore mining operations will be advanced with USD $5,000 each. The company will attach a representative to each pre-financed oxide copper mining operation to ensure that the oxide copper ore is produced using its funds. And, so that it’s not sold or used anywhere else. The other condition for pre-financing is that the company will buy the copper ore produced at a fixed price of USD $50 per tons (Mine Gate Price), leaving plenty of shared profits for us.
1) Capital Costs
The total capital costs are estimated at USD$ 500,000.
This is mainly for the infrastructure development and purchase of capital equipment for which a total Scrap Value of USD $210,200 is expected at the end of the first twelve month life of the project.
2) Operating Costs
An initial sum of USD$ 50,000 will be advanced to ten small scale mining outfits. Thereafter, monthly operating expenses are estimated at around USD $325,000.
In carrying out our cash flow analysis some assumptions were made.
The major ones are as follows:
a) Productive life of the project will be at least ten years;
b) Monthly production of cement copper will be at least 200 tons;
c) Capital equipment will have a scrap value of at least USD $210,200 at the end of the first twelve month life of the project;
d) The price of the cement copper powder shall not will below USD $3,250/t (FOB Zambia)
Our cash-flow analysis shows that the project begins to have a positive net cash-flow in the fifth month of operation in which a profit of USD $158,125,00 is earned.
Thus, this project has a Pay Back Period of only four (4) months.
The company anticipates to earn at least USD $650,000 monthly from the sale of 200 tons of cement copper powder. Solid returns for the risk we’ll be taking on together.
- Our knowledge and expertise in the cement industry
- Warehouses or storage areas located near the production plant
- Established buyers around the country for positive cash flow
As for the rationale of the deal, it’s really a no-brainer. Currently, there is a high demand in Zambia (and in the region) with it being set to increase every year from here on out. There is a lot of potential here for success, but only if one is committed to the overall vision, as we are.
Besides the recovery of copper otherwise lost in mined waters, our cement copper process has several additional advantages. It is simple in principle and operation, usually requiring minimal human attention and some machinery. Fluctuations in copper content of the solutions do not affect the efficiency of the process.
Also it uses relatively inexpensive low grade material and produces a high-grade concentrate. The industry will greatly benefit as we improve the techniques, have deeper penetration, and produce better quality product all with the best staff available.
These advances clearly explain why there will be many potential buyers lined up to purchase this material from us.
TERMS AND CONDITIONS
This joint venture project is to be undertaken under the following terms and conditions:
1) The project shall be carried out as a joint venture between the project founder and the financier on a share ratio which shall be agreed upon between the parties involved; and
2) The project shall be carried out in Zambia.
The company founder has a Masters degree in Mineral Science (MPhil) from the Camborne School of Mines in the United Kingdom and a Bachelor of Mineral Science (BMSc) degree in Metallurgy. He has 28 years of mining experience in Zambia, Zimbabwe and India. He has previously worked as a metallurgist in a Sponge Iron and Integrated Iron & Steel Plant in India and Manager of a gold mine and precious metals refinery in Zimbabwe.
CONTACT US IMMEDIATELY
If you want to partake in this partnership, and amazing opportunity, do not hesitate to contact us. We will provide you with a complete business plan. These documents will include more valuable and in-depth information so that you can make a more full decision when it comes time. We are receiving a lot of interested prospects already though — so please get in touch with us soon.
We appreciate your time and hope to hear from you!