Calcite

Project Profile:

The following project will create a calcite mining and processing facility in Kutaisi, Georgia, where the vast calcite deposits of high purity calcium carbonate located in western Georgia can be exploited for various industries. The mining and processing facility will have an annual capacity of 19,000 tons of high purity calcium carbonate. This will meet the growing demand in the local Georgian market as well as the demand for export to the EU, Middle East, Russia, and other countries. The investment needed for this project is USD 4 million with a 15 year IRR of 47%.

Background:

Global market:

Market size (2012) – USD 15.66 billion (86.5 million tons)
Annual growth rate – 7%
Asia Pacific – 49% share of the global market (2012)
North America – 20.7% share of the global market (2012)
Europe – 23.7% share of the global market (2012)

Advantages of Georgia:

Duty free export to the EU, US, CIS and other regions with a total population of 2 billion
Existing infrastructure and communications
Inexpensive resources such as electricity, labor and water
Advantageous geographical location: easily accessible European and Asian markets via the Black Sea ports of Poti and Batumi
Growing local market provides a great potential for import-substitution
Deep and Comprehensive Free Trade Area (DCFTA) between Georgia and the EU
High quality deposits
High natural purity – low cost purification

Project Description:

Company location – Kutaisi
Target market – local market and export to EU, Middle East countries, Russia, etc.
Annual capacity – 165,000 tons

Financial Highlights:

Total investment – USD 28 million
The expected revenue for a year – USD 21 million
EBITDA – USD 6.2 million
30 year IRR – 20%

Governmental Resources:

The Government of Georgia provides the following financial incentives:

Nominal price for land
Loan/leasing subsidy through the “Produce in Georgia Initiative” (ge)
Equity co-financing through the Partnership Fund (ge)
Technical assistance through Georgia Industrial Development Group

In Summary: Untapped minerals, as white as snow

Regional demand for high purity calcium carbonate is high from Russia, Ukraine and Azerbaijan. Transportation cost plays a key role in the pricing of the product. Unlike its competitors, Georgia, in close proximity to the regional market, could become a cheaper calcium carbonate supplier and a leading player in the market of precipitated calcium carbonate production.

phone:

551176470 ENG

phone:

577772203 GEO

phone:

595655655 RUS

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