BPP QUARRY MOZAMBIQUE

Transcription

1 BOWERS PRIVATE PARTNERSHIP B P P BPP, LDA Rua Oliveira Martins No. 48 Unico Bairro COOP - Maputo Mozambique BPP QUARRY MOZAMBIQUE Copyright , All rights reserved Presented by W. H. Bowers V, CEO & C. D. Bowers, COO Tel: +41 (79) cbowers@blaquid.com - Skype: carmen_bowers - Website:

2 Table of Contents 1. Executive Summary Problem Solution Financing Company and Expertise Outcome Statement of Need Operational Heavy Equipment Project Description Objectives: Hard Rock Quarrying Human resources Evaluation Sustainability Budget First year cost estimation Import taxes or customs duties Conclusion

3 1. Executive Summary 1.1 Problem The need for public infrastructure, such as roads and buildings, in the urban and rural areas of Mozambique, has created a demand for construction enterprises. These urban and rural areas remain underdeveloped due to limited availability of the heavy equipment needed by construction enterprises to build these infrastructures. This has resulted in millions of dollars worth of unfulfilled construction contracts in recent years. 1.2 Solution Bowers Private Partnership LDA aims to provide a joint venture of products and services and technical assistance to these construction enterprises by procuring land and the heavy equipment necessary to establish a full production rock quarry. Our overall goal is to provide these services to the country in its entirety. Our facilities will be established in the central part of the country, initially. We will focus our efforts in the Tete and Manica provinces where there is great potential to revitalize the construction industry through Public and Private sector cooperation. 1.3 Financing A capital investment of EUR 3,000,000 will cover the cost of the first year of operation. This will include the purchase of land and heavy equipment, operating expenses and salaries for 10 employees. With our crushing plant we will begin producing stones from an existing but presently non-operational quarry. These stones will be sold to construction enterprises in need in order to generate immediate revenues. 1.4 Company and Expertise Our vision of a private trade and investment company started in July After years of market research and other studies BPP, LLC was incorporated in the state of Texas, USA in January 2009 and has expanded its operations to the African Region by establishing BPP, LDA Mozambique in May Our team of highly skilled individuals possesses a broad array of experience in the areas of Quarrying, Heavy Equipment, Construction, Logistics, Administration and Business management. The owners presently reside in Switzerland where they are researching European markets. 1.5 Outcome Our goal is to facilitate construction enterprises with the materials and services necessary to fulfill their obligations under the terms of reference of their respective contracts. Bridging this gap will result in immediate and long-term employment for the citizens of Mozambique. The tax revenues generated by higher rates of employment will in turn provide the funding for additional government sponsored construction projects thus perpetuating sustainable development. 3

4 2. Statement of Need 2.1 Operational Heavy Equipment Over a 6 year period, from 2004 to 2009, 10 million USD worth of construction contracts remain unfulfilled in central Mozambique. This is due to a lack of operational heavy equipment. While some equipment does exist in the country it is largely in disrepair. In many cases the equipment is obsolete, ranging from 12 to 20 years old. Even if technicians and spare parts were available for maintenance and repair, it is unlikely that the useful life of the present operational equipment could be extended enough to get meaningful results. The following table provides a snapshot of the equipment conditions on the ground: Heavy Equipment Make Operational Damaged Total 4 Komatsu D6E 1 Bulldozers 2 Caterpillar D6H Graders 8 Komatsu D511R 2 Caterpillar 140H 1 Chinese brand PA Loaders Komatsu W Vibrating Rollers 10 Ingersorland 2 SAKAI Dump-trucks 40 Toyota 6000, 5 Nissan UD Tipper Deck Crushing Plant Total As we can see from the table, 77% of the existing equipment is unavailable for use. With a mere 23% capacity to fulfill the construction mandates of the region, deadlines will continually be over run. With the proper equipment these projects can be completed on time thus facilitating the subsequent activities which are dependent on their successful completion. For example: repaired roads will facilitate the expedient flow of commercial traffic, completed office buildings allow for the commencement of operations such as hiring staff etc So much enterprise is directly related to the success of the construction industry. 4

5 3. Project Description 3.1 Objectives: Hard Rock Quarrying To open a quarry we will have to make roads into the site and create large areas for stockpiling the products we make. We will also need to develop a quarry face which will mean cutting into the side of a hill a number of times until we get enough height around 20 to 30 meters is the most economical face to have. Open cut hard rock quarry Before hard rock can be removed the overlaying topsoil and 'overburden' (weak or weathered rock) must first be put to one side by the excavator and dumper to expose the fresh, hard rock underneath. This first stage of quarrying is called 'stripping'. Once the top of the quarry has been cleaned off the holes will be drilled vertically in a grid pattern and set with explosives. These holes are then detonated in a phased sequence to allow the rock face to break free and fall away from the face like cutting the rock in a slice. To make aggregates from hard rock we must break the rock up into smaller pieces. To break the rock, explosives are used to blast a certain amount of rock in a careful and controlled manner. The explosives are placed in holes that have been carefully and accurately drilled down into the bench. When everyone is safely away from the blast area, the explosives are detonated (or exploded) by a person known as a 'shotfirer'. Grid pattern Blast It can take several days to drill the rock and a day to place the explosives. But the blast is over in just a few seconds! The fresh rock can then be quarried in a 'step' pattern that we call benching. Over many years a hard rock quarry, with its series of benches, can become very deep - sometimes hundreds of meters deep. A busy quarry can remove over 1 million tons of rock per year. 5

6 An excavator loading a dump truck A modern hard rock quarry with benches After the rock has been broken by blasting, it can be loaded by excavators or face shovels into dump trucks. It is then hauled by dump trucks to a crushing plant. Occasionally a conveyor is used to take the broken rock to the crusher. At the crushing plant, the rock is broken and shaped into smaller and smaller pieces by crushing machines called rock crushers. Usually, the rock is sorted into different sizes by passing it over special screens. The screens are like sieves that let smaller rocks through but not the larger ones. The finished rock products are known as aggregates. Modern crushing and screening plants are fully automated and operated by a controller with the help of computers and closed circuit TV. A modern crushing/screening plant Stockpiles fed by conveyor belt from the screening plant The aggregates are carefully stored in large heaps called stockpiles or in large bins. They are now ready to be used. Larger quarries may produce over 20 different types of crushed aggregates according to size, shape, strength or even color. A customer will order a certain type of aggregate. The aggregates are then loaded into road trucks usually by front-end loader. The truck load of aggregates is then weighed, the load made secure and then delivered to wherever it is needed. Aggregates are needed in large quantities and are bulky. They are expensive to transport long distances. Quarries therefore need to be close to where the aggregates are eventually used. 6

7 3.2 Human resources Pres. and CEO, W. H. Bowers V, American, was a member of the United Nations Operation in Mozambique (ONUMOZ), involved in various development projects in Nampula, in the areas of Logistics, Construction and Contract Management, from 1993 to He is currently contracted with the United Nations Environment Programme (UNEP) in Geneva Switzerland. Vice-Pres and COO, C. D. Bowers, Mozambican, has consulted as an independent contractor for the United Nations Economic Commission for Europe (UNECE) and UN-HABITAT in Geneva, Switzerland. She possesses vast incite and affiliations beneficial to the needs of her country and has orchestrated this joint venture from the very beginning. Consultant, Hercilio Varela de Almeda, Mozambican, is a well established businessman in Mozambique, possessing his own construction company. Chief Technician, Frank Odwyer, Irish, is a fourth generation quarrymen and has sold heavy equipment to Kenmare Resources (KMR), a company well documented for its operations in Mozambique. His expertise consists of technical assistance, procurement, operations, maintenance, staffing and training. Foreman, Rui Amorim, Mozambican, worked with Multiplex Bateman Joint Venture for 4 years in administration initially and then as a technician operating heavy machinery and crushers. He also worked with Grinaker LTA Earthworks in Nampula for 3 1/2 years. Administrator, David Nhanjale, Mozambican, is a former 5 year employee of the Department of Urbanization in the Nampula Mayors office. His expertise in administration makes him the ideal candidate for running the rock quarry site. 3.3 Evaluation Our primary concern is meeting the needs of our clients. It is on this basis that we will judge our performance. One key factor in this regard is evaluating the ability of a potential client to meet their financial obligations when purchasing our product. Ensuring payment will enable us to continue providing quality products and services. Additionally, we intend to provide services such as delivering the product and renting equipment when feasible. The ability to provide these additional services will be a clear indication of the strength of our business. 3.4 Sustainability The sustainability of this business is directly related to the amount of revenues that can be generated from the sale of crushed stones. As illustrated in section 2.1, there is a tremendous market for such a product and therefore the demand is likely to increase for the foreseeable future. 7

8 4. Budget 4.1 First year cost estimation Item Cost - Euro 1. Feasibility Study: a) Travel for 1 person for one month throughout Mozambique 3, Licenses: a) Mining and Minerals 5, Equipment: a) Heavy Machinery b) Office 5. Staff: a) Salaries b) Consultancy Fees 1,524, , , Operations: a) Fuel 276,000 TOTAL 2,563, Import taxes or customs duties In principal, all products imported to Mozambique are subject to import duty. Duty percentages vary from zero to 20 percent, according to the Customs classification. In addition to the customs duties, goods are subject to value-added tax of 17 percent. Products may be exempted from import taxes if they are part of an investment project. Industrial free zone developers enjoy an exemption from customs duties, VAT and Specific Consumption tax on the importation of construction materials, machinery, equipment, accessories, accompanying spare parts and other goods intended for the establishment and operation of the Industrial Zone. 5. Conclusion Based on our preliminary findings and subsequent feasibility study there are strong indications for the development of a hard rock quarry business in Mozambique. There are numerous construction projects ready to be launched and a number of willing enterprises eager to begin the work. Once our equipment is brought in we can provide those enterprises with the ability to start and in some cases finish previously halted projects. We believe the present situation in Mozambique can be remedied through a cooperative effort among the Public, Private and Financial sectors resulting in an environment of sustainable development for the construction industry. 8