Business Plan Mine

7/27/2019 Business Plan Mine

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B U S I N E S S P L A N

Rutile Mine and Cianite Andrelandia City MG Brazil.

Mrs. Maria Antonieta A Nilo Rezende

1


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Index:

1- EXECUTIVE SUMMARY ............................................. .......................... 3

2 - OPPORTUNITY .................................................... .................................... 5

3 - MARKET ANALYSIS ..................................................... ......................... 6

4 - STRATEIC ANALYSIS .................................................. ....................... !

5 " T#E MINE................................................................................................14

6 - $EVELOPMENT EXTRACTION ........................................................1%

% - &INANCIAL PLAN .............................................. ................................. 1!

' " ATTAC#S................................................................................................2'

2


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/(e77 NPM$ DN*+n $e/*en* M+ne/ Re7e/( nd *e/ en(+e7 /e


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2- O/*)n+*0

2.1- In*/d)(*+n:

The owner of mineral rights and also the adjacent areas of exploration and logistical support,

Mrs. Maria Antonieta The Nile e!ende is a empreededora who had a dream of "uilding a cottage,

which was the famil# farm in the municipalit# of Andrel$ndia % M& . 'ut "# accident of fate

e(entuall# find that spot there is a deposit of ore rutile and )#anite that can "e exploited

commerciall#. And after ha(ing done se(eral researches, studies and anal#sis techni*ues of the site,

see)s a negotiated propert# and mineral rights for commercial exploitation.

2.2- $e,een*:

The economic turmoil ma# ha(e "rought down the worldwide mar)ets, "ut in(estment

opportunities are momentar# and should "e sei!ed at an# time.

The rise of social classes and the rise of glo"al mar)ets pro(ide an increase in consumption and the

introduction of new products. And so it should come new applications and increased inno(ation.

Thus, commodities and mineral resources are essential for the de(elopment of this scenario. The

extracti(e industr# has "een low for man# #ears, "ut this last decade has increased exponentiall#,

leading mineral prices reach extremel# high rates. 'ut this mar)et is highl# concentrated in thehands of great pla#ers, which holds the majorit# of existing deposits, and the cost of research and

de(elopment of new deposits is (er# large, which pre(ents new disco(eries.

The reser(es of ilmenite, are concentrated in Norwa#, +anada, ndia, Australia and -outh Africa,

which together hold /.0, the rutile is mainl# in Australia, ndia and -outh Africa, which together

account for 3.0 and 'ra!il holds the largest reser(es of titanium in anatase form, concentrated in

the states of Minas &erais and &ois 'ra!ilian production of titanium ore, remained sta"le in the

last fi(e #ears. orld resources identified rutile 5including anatase6 total a"out 230 million tons of

contained Ti72.

/


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3- M/Be* An07+7

3.1- In*/d)(*+n:

Titanium dioxide due to its characteristics of opacit#, whiteness, chemical resistance, hiding

power and a"sence of toxicit#, is widel# used as a white pigment "ecause of its "rightness and high

refracti(e index 5n 8 2.96, which is onl# surpassed "# other materials. A"out million tons of

pigmentar# Ti72 are consumed annuall# worldwide. At a cost of approximatel# : 4,000 ; t 5two

thousand


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3.2- P/7e(*:

>a(ing done se(eral studies, reports, technical anal#sis and field research, it is "elie(ed that

the site has a deposit of minerals with high commercial (alue, especiall# rutile and )#anite. This can

"ecome a major competiti(e ad(antage due to the en(ironment of this highl# concentrated mar)et.

3.3- S++n /Be*>7 */e*:

As stated earlier, is estimated at


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3.4- En*/n(e H//+e/7:

+urrentl# there are major

pla#ers in the glo"al extracti(e as

'>?, io Tinto, @ale and Anglo

&old, who run the industr# due to the

high le(el of in(estment in the

"usiness. There are also other

competitors medium and small, who

are the main competitors, as some

operate the same t#pe of mineral,

namel# rutile and ; or )#anite. The#

ma# also suffer from social, cultural,

regional and ideological as it will

ha(e to ma)e a great de(astation in the

area to remo(e mineral extraction.

Above is graphical representation of the ain

producers of rutile and ilenite in the world.

3.5- Cn(//en(e An07+7:

i)e an# mar)et, competition is *uite di(erse and disputed, and should act in a (er#

competiti(e mar)et. Toda# the main mineral extractors are focused on metals that ha(e had large

increases in recent #ears such as aluminum, iron and copper.

>owe(er rutile and )#anite ha(e prospects crecimento exponentiall# in the coming #ears,

which ma# ma)e this an acti(e mar)et differentiator in the near future.

And the deposit can "ecome a paradigm in model current mineral extraction, and extraordinar#

gains in a short time.

B


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4- S*/*e+( An07+7

4.1- In*/d)(*+n:

Titanium will grow exponentiall# in the coming #ears, with the increase of its applica"ilit#

in (arious materials and utili!ation as a feedstoc) in the process of pigmentation. This is "asicall#

due to their characteristics intrCsecas and promising research "eing conducted on the technological

de(elopment. The rutile 5Ti726 is a mineral little presents in red and reddish "rown or "lac). 'lac)

is found in the region mentioned, it cr#stalli!es in the tetragonal s#stem, has the su"metlico

adamantine luster, hardness from .00 to ./0, densit# 4.1B to 4.2/ g;cm3. t is a mineral

su"translDcido and ma# "e transparent, essentiall# composed almost Ti72 ma# contain impurities

up to 10. Titanium metal has "een widel# used in the aeronautical and aerospace industries, and is

applied in the manufacture of parts for engines and tur"ines, aircraft fuselage and roc)ets, as also

(er# well used in chemical industries, nuclear, na(al and warli)e. Ti72 in the future will ha(e new

applications, some of them re(olutionar#, li)e the ultrafine titanium dioxide, at the nanoscale, which

operates as a catal#st for "rea)ing N7x compounds, currentl# a serious en(ironmental pro"lem. The

idea is to use these pigments in coatings for ci(il wor)s and "uilding facades, transforming them

into great en(ironmentall# friendl# catal#sts in the megacities of the world. -uch ultrathin untreated

surface, in order to preser(e their catal#tic acti(ities and N7x are alread# "eing tested in some citiesof the world.

The main deposits of titanium ore 5rutile, ilmenite and anatase6 in the world are located in

Noruegua, Australia, +anada,


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of mine 5HN?M ; HHFM 200/6. Guart!, hematite, mica and rutile are the main minerals of )#anite

included in the cr#stals, as well as fine graphite, gi""site and goethite occurring around the massi(e

)#anite oxidi!ed.

'ra!il has the largest reser(es of anatase titanium toda# )nown in the world, (alued at

around 440 million tonnes with a(erage grades of 19.9 Ti72, together with other metals such as

phosphate, nio"ium and rare earths.

+ommercial production of titanium ore in the countr# is led "# Millennium norganic

+hemicals do 'ra!il - ; A 5?'6, which holds 9/.00 of the national production, followed "# the

compan# Titanium &ois - ; A 5&76, accounting for approximatel# 20.00 of production and

Nuclear ndustries of 'ra!il - ; A 5E6 with /.00. According to the records of the MMF, o(er the

last thirt# #ears were computed in(estments of


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Above is the correlation between the consuption of TiO2 based on "#$ in the world.

4.3- H)7+ne77 &()7:

The focus should "e on world trade of iron ore, as it is a commodit#, with a"sorption of

demand on the "asis of million tons, onl# the application of Ti72 pigments. The high refracti(e

index of rutile cr#stals, which leads to their greater opacif#ing power and superior sta"ilit# a"road,

is the main reason for their preferential use in relation to anatase, and is shown "elow the cost of

production of Ti72 pigment, with "ased on the extracted material, so the rutile metal with the

highest (alue.

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Above is representation of the ain processes of anufacture of TiO2 in the world.

4.4- M+77+n:

The mission is to pro(ide a deposit of mineral exploration, with high concentrations of rutile

and )#anite, which atendenda re*uirements en(ironmental, social and human, with "etter cost ;

"enefit to customers, with respect to professional ethics, go(ernment, and relational.

4.5- O/*)n+*+e7:

7pportunities are li)e wa(es that appear and then (anish, so it is "elie(ed that this is the

formation of the wa(e as it presents a uni*ue opportunit# of a mineral deposit, which ha(e alread#

"een made primar# and secondar# studies that pro(e the existence of the mineral rutile and )#anite

in the region, as with all records re*uired for commercial exploitation as necessar# areas for

de(elopment acti(ities.

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t ma# also "e noted that this opportunit# has surpassed se(eral other primar# phases of

deco"erta, as demonstrated "# our research, findings, reports and official documents, which in itself

characteri!es the in(estment in the "usiness.

4.6- T/e*7:

Threats come as the de(elopment of new research and ; or the extraction process, it will

ha(e to attend to all the conditions re*uired for this acti(it#, such as laws regarding en(ironmental,

la"or and ci(il. 'ut with the expedition fa(ora"le mining right "# HN?M alread# hold land

ownership which will "e explored and surroundings, this considera"l# reduces these external

threats.

4.%- S*/n nd ?eB P+n*7:

Alread# own the record N?MH mining processesI B34 1B0, B34 1B1 and B33 B94

>olds title and ownership of the areas where the minerals are exploited and adjacent to

logistical support, which can "e installed in a "ase camp for staff accommodation and conditioning

wor) material.

eports of &F7-7 and amir%ori!onte "# >ighwa#

040, on a journe# of /4 )m to reach the highwa# '3B3, which will "e another 200 Jm to the

location. The cit# is ser(ed "# >ighwa# and Atlantic +enter for -teel ailwa#, thus pro(iding an

excellent infrastructure, and that ma# help escoaKLo production.

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4.'- O9;e(*+,e7 7 nd 7*/*e+e7:

The intention of the sale of the mine to allow the controller to commerciall# exploit the

localit#, with the extraction of minerals rutile and )#anite as other accessories to them. Also in the

area is found to sillimanite, su"stitutes for refractor# "auxitos. The cianitito ha(e found associated

minerals such as musco(ite, *uart! and rutile. The extraction potential can "e le(eraged

exponentiall#, "ecause as reports and research gathered, the region has geological characteristics

necessar# for the presence of these materials.

Also mineral extraction can "e performed well "ecause the area is awa# from the cit#,

lac)ing an# hindrance am"ietal, social or human. The prospects of o"taining mineral are the largest

possi"le area for onl# a B0 mt2, with a little dig of 0./ mt, we managed to get a sample of the

material "# collection of more than 2./ Jg This amount in relation the earthmo(ing regarded in

place is 3 times higher than that o"tained in the current process mining rutile. ith the use of the

material and appropriate technical e*uipment, this condition can "e extrapolated su"stantiall#.

4.!- H)7+ne77 Ce*en(+e7:

Alread# "een o(ercome (arious stages of the disco(er# process, were first identified on the

surface occurrences of the localit#, then "ro)e for the sur(e# of former residents. After has "egunthe process of opening record of mining right, with conse*uent ph#sical sur(e# of the composition

of raw ores collected. ?assed the phase of initial geological sur(e# and exca(ation to determine the

amount of ore in the localit#. =inall# the letter was issued to the right of exploration of the area "#

the competent "od# % HN?M.

14


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5- Te M+ne

5.1-In*/d)(*+n:

Mrs. Maria Anotnieta Nilo e!ende is the granddaughter of an important "usinessman of

Minas &erais 5now deceased6 of origin -outh Mine in the cit# of Andrel$ndia. There he owned a

house in town and a farm near the (illage, where the owner used to spend their holida#s with

relati(es. >is grandfather alwa#s said that in that region there roc)s important in the future that

could ha(e a (er# large (alue, and propert# existed in a place nic)named "oulder where it was

determined greater presence of these materials. This now ma)es more than /0 #ears, "ut no one had

heeded this curiosit# was when Mrs. Maria Antonieta decided to purchase a near"# area so he could

"uild a house for #our leisure. That occurs in contact with former emplo#ees of her grandfather, she

had contact with a stone called rutile, and a greater curiosit# was that it was the search, and found

that it was an important ore to the world mar)et. =rom this it has "egun the process of studies,

reports and research that guided the disco(er# of this mine rutile and )#anite.

5.2- O8ne/ $*:

7wnerI Maria Antonieta A Nilo e!ende+?=I 299/19B392

ecords pursuant to aw n. 229 of =e"ruar# 2B, 19, go(erning the mining code, HN?MI

B34.1B0, B34.1B1, B33.B94

ecords of ?ropertiesI

?ropert# 1% 10 >a. and 39 are of land in the municipalit# of Andrel$ndia, recorded in the office of

Fstate under num"erI 11,B3B

?ropert# 2% 4/ >a. land in the municipalit# of Andrel$ndia, recorded in the office of Fstate under

the num"erI 3,904

1/


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5.2- $e,een* $+7(,e/0:

After the initial curiosit# of metal, Mrs.. Maria Antoineta Nilo e!ende was loo)ing for

more data and information a"out that o"ject, for it spo)e with se(eral people are professionals,

entrepreneurs and inha"itants of that localit#. -o he left for the second phase of the disco(er# of

curiosit#, what would "e proceeding with studies and research necessar# to (erif# the actual

a(aila"ilit# of a mineral deposit in #our propert#.

=irst sought HN?M so he could find out what was necessar# for the li)el# record a mine.

ith the information in hand, hired an experienced geologist who started the initial registration

process area of #our propert#, num"er B34.1B0. After site (isits and other (arious researches on the

spot, he reali!ed that there were other areas that could also "e material, then chec)ed into 2 other

procesos the num"er, B34.1B1 and B33.B94, as well could ha(e some securit# against other

sta)eholders.

ith this tried along with other technical "odies geological sur(e#s of the region, as all

historical mapping geographical region located in the municipalit# of Andrel$ndia%M&. Moreo(er,

there has "een continued with the technical reports that show the le(els of ph#sico%chemical

compounds remo(ed from the propert#. 7ne of these reports was issued "#


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through the trenches in the ground so the# could "e chec)ed with accurac# the presence of the

mineral.

n this phase, which "egan in mid%2012, and in Hecem"er the exca(ations were conducted

using a "ac)hoe on land owned "# Mrs. Maria Antonieta and made four trenches 2 meter "# 4

meter, totaling a total area explored B0 meter s*uare, with a little digging depth of onl# 0./ mt. ith

material ta)en from the land, was gi(en to start the process of material selection for the sample

definition, for it was decided that would "e remo(ed onl# larger fragments of minerals rutile and

)#anite. -o emplo#ees who performed the wor) +ataram and ; or too) the stones that were digging,

and separate "atch of open trenches. >as "een achie(ed a sample of the material "# collection of

o(er 2./ )g, containing rutile and )#anite. 'ased on the amount of material remo(ed is mo(ed

through the earth catamento this process, we can infer an amount of a"out 3 tonnes, and arri(es at a

ratio of 0.1 shale ore. This proportion is three times higher than the a(erage o"tained in the

current process mining rutile and )#anite, which demonstrates the great potential for exploitation of

the deposit.

Therefore, in mid%Ma# 2012 was granted "# HN?M record mining final with the issuance of

a letter of authori!ation to research mining and future commercial exploitation.

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6- Ex*/(*+n V+9++*0

6.1- $e,een* ex*/*+,e:

The compan# toda# pro(ides a num"er of attri"utes for "usiness de(elopment. And to

achie(e the goals, companies must meet numerous re*uirements, whether en(ironmental, social or

human.

A mar)et worth "illions of dollars can not "e disco(ered in the wilderness, #ou should

alwa#s "e guided "# concrete emplacements and logical perspecti(es. -pea)ing of mar)et

extraction, the num"ers are scar#, tends to ma)e a massi(e in(estment in "oth phases of research,

prospecting and extraction. The first step towards economic (ia"ilit# and *uarr#ing site has alread#

"een gi(en. As stated a"o(e, has an in(estment of around


19/31

-tudies show that a grounding containing orthogneisses of pro"a"le ?aleoprotero!oic with

possi"le relict Archean and Neoprotero!oic metasediments of megase*uence Andrel$ndia constitute

the pre +am"rian units in the region. -eeing how the region has "een extensi(el# studied and

therefore rich in minerals. 5Air"orne &eoph#sical -ur(e# % 2010%2011 % +?M ; +7HFM&6.

As mar)et studies, the process of expanding the production capacit# of the mines and

treatment plants titanium ore in the period 19B%2009 was recorded a total in(estment of


20/31

'- &+nn(e Pn

'.1- In*/d)(*+n:

F(er# "usiness strateg# should "e "ased on "udget planning and financial and real

conser(ati(e. 'ecause of the difficult# of measuring the existing deposit, present "elow a fairl#

conser(ati(e financial projections, with the exact allocation of prices and costs.

'ased on sur(e#s, studies and anal#!es conducted, we ma)e a pro"a"le projection of

deposit 30,000 tons of mineral material to "e explored. 'eing 1B0,000 tons of ore rutile and

similar amount of )#anite. 'ased on the current prices of these metals in the international mar)et,

utile to : 1B00;t J#anite to : 400 ; t, we calculate a total gross of mine of : 3 million dollars.

7ccurs it ta)es place more studies, sur(e#s and polls so that we can ha(e a sure relia"le

measurement of real and li)el# the material in the localit#. t happens that this entire process

re*uires large in(estments and greater a(aila"ilit# of time.

e will then ma)ing a projection effecting economic and financial optimistic, realistic and

pessimistic feasi"ilit# of commercial exploitation of the deposit, ta)ing as its premise a correlation

"etween them / times "etween scales.

e also did an extrapolation to the prospect of exploring the life of the mine, as it was

projected amount of 30,000 tons of ore to "e exploited in the mine, with an annual output of20,000 tons, we present the graphs with the total return on in(estment 576 with the 1B #ears

pro(ided for the operation of all acti(e mining. Also featured are three perspecti(es, realistic,

pessimistic and optimistic.

'.2- &+nn(e nd e(n+( Pn:

>ere we present the three projections of our economic and financial plans, with sales

prospects and operating costs and initial, ending with the rate of return o"tained.

20


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Re+7*+( P/;e(*+n

Pe77++7*+( /;e(*+n

O*++7*+( /;e(*+n

21

Projection / Year 2015 2016 2017 2018 2019 2020

Revenues 26.500 29.150 31.774 34.315 38.433 42.277

Market E!ense 1.600 1.744 1.884 2.053 2.197 2.372

"!eration E!ense 5.800 6.264 6.828 7.442 8.075 8.802#inance E!ense 2.900 3.074 3.274 3.470 3.696 3.918

$"$%&' 16.200 18.068 19.788 21.350 24.466 27.185

Projection / Year 2015 2016 2017 2018 2019 2020

Revenues 132.500 145.750 158.868 171.577 192.166 211.383

Market E!ense 7.680 8.371 9.041 9.855 10.544 11.388

"!eration E!ense 9.860 10.649 11.607 12.652 13.727 14.963

#inance E!ense 5.220 5.533 5.893 6.246 6.652 7.052

$"$%&' 109.740 121.197 132.327 142.824 161.242 177.981

Projection / Year 2015 2016 2017 2018 2019 2020

Revenues 5.300 5.830 6.355 6.863 7.687 8.455

Market E!ense 0.320 0.349 0.377 0.411 0.439 0.474

"!eration E!ense 1.160 1.253 1.366 1.488 1.615 1.760#inance E!ense 0.960 1.018 1.084 1.149 1.223 1.297

$"$%&' 2.860 3.211 3.529 3.815 4.409 4.924


22/31

ROI Re+7*+(

ROI Pe77++7*+(

22

0

20

40

60

80

100

120

2015

2017

2019

2021

2023

2025

2027

2029

TOTAL

2015 2016

2017 2018

2019 2020

2021 2022

2023 2024

2025 2026

2027 2028

2029 2030

TOTAL

0.000

100.000

200.000

300.000

400.000

500.000

600.000

2015

2017

2019

2021

2023

2025

2027

2029

TOTAL

2015 2016

2017 2018

2019 2020

2021 2022

2023 2024

2025 2026

2027 2028

2029 2030

TOTAL


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ROI O*++7*+(

23

0

500

1000

1500

2000

2500

3000

2015

2017

2019

20212023

2025

2027

2029

TOTAL

2015 2016

2017 2018

2019 2020

2021 2022

2023 2024

2025 2026

2027 2028

2029 2030

TOTAL


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L)d7 :

24


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2/


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Re+7*/7 :

2


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29


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2B


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2


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Pe7


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