Project profile:
Diabase gives the uniqueness to this mine, with copper strips. This dense stone of the granite family is rich in colors and has great potential for exterior use (surface material) in the construction industry. This project involves the extraction of diabase from intact supplies through the Pankisi Gorge. Upon commencement of the works, the investor will receive valuable blocks for sale in the international market. The required investment for this project is $ 2.5 million, 5 year IRR – 25%.
Background:
The moderate global market for the stone industry (2013): 54 billion USD
Annual growth rate: 7.5%
Major manufacturers of raw natural stones: China, India, Italy, Iran, Turkey, Brazil, Egypt, Portugal, USA, Greece, France and South Africa.
Main consumers of the finished products: China, USA, India, Italy, Spain, South Korea, Germany, France, Japan, Taiwan, Brazil and Great Britain.
Advantages of Georgia:
Georgia has a favorable investment environment, as evidenced by:
- Tax-free export to the EU, the US, the CIS, and other regions with a total population of 2 billion;
- Availability of the suitable raw material ores;
- The government’s priority project;
- Low-cost resource – for example, electricity, labor force and water;
- Favorable geographical location – easily accessible European and Asian markets through the Black Sea ports of Poti and Batumi;
Dimension stone import (2014): 16 million USD;
Annual Growth Rate: 37%
Georgian Construction Market (2012): – 2.5 billion USD,
Annual Growth Rate: 22%
Project description:
Company location: Akhmeta, Kakheti;
Target market: local market and export to the EU, the Middle East countries, Russia and etc.
Product: The plant will receive unique, malachite-colored, natural stone blocks;
Annual volume: 20,000m³,
Detailed business plan and any other information are available upon request. Contact us by email – GIDG@economy.ge or see the contact information.
Financial indicators:
Total investment: 5 million USD
III year income: 5 million USD
III year EBITDA: 7 million USD
5 year IRR: 25%
Government resources
The Government of Georgia offers the following financial incentives:
- The nominal price of land;
- Disbursement of the loan/lease within the framework of the initiative – “Enterprise Georgia” (www.qartuli.ge);
- Co-financing of capital through Partnership Fund (www.fund.ge);
- Technical assistance through the Georgian Industrial Development Group;