The aims of the project.

The organization of mining handicraft and decorative stones as commodity chipped blocks.

Foundation of a stone-processing production on output of? facing tile from ?natural stones and other material.

Business tasks of the project.

To fulfill  works on projecting quarries and stone-processing manufactures.

To fulfill works on arrangement of quarries.

To organize mining of nonmetallic materials as commodity blocks and their delivery up to the place of loading to consumers.

To fulfill works on foundation of stone-processing manufacture.

The main sources of incomes are selling commodity blocks and products made of them in the home and foreign markets.

Raw support of the project.

Nowadays, the enterprise has licenses for seven deposits and displays of facing and decorative stones and the license for a deposit of  nephrite, i.e. greenstone (a semiprecious stone). This project offers development of the Burguysky deposit of labradorite  and the Nikolaevsky deposit of red granite.

1.    The Burguysky display of labradorite is located 30 km. far from the city of Zakamensk and  250 km. far from railway station. The estimated stocks of labradorite are 2000 thousand cubic metres, an expected output of pressed blocks of I-V group - 30 %. Labradorite possesses unique decorative properties, and on physical and mechanical parameters it is close to granite. On the territory of Russia mining of labradorite is not conducted now. The main supplier of this stone is the Ukraine, far abroad suppliers are Canada, Madagascar and Norway. Italian stone-processing companies, South-Korean and Russian manufacturers need in supply by blocks of labradorite.

2.    The Nikolaevsky deposit of red granite is located 18 km far from the city of Ulan-Ude near the highway. The distance to the place of loading in the railway transport is 20 km. The balance stocks of facing stone on categories á+Sg47 mln.cubic metres, an output of blocks - 65,4 %, an output of tile from 1Ë-18,9Ë, decorative effect - 28 points. Now working quarries on extraction of decorative granite are in Leningrad region, Karelia and in Uralsk region. Volumes of production extracted there do not provide needs of stone-processing enterprises of Russia, therefore, according to the data for the year 2003  purchases of stone from abroad exceeded export in 10 times. (160 thousand cubic metres and 16 thousand cubic metres accordingly). In particular, we have the application for deliveries of granite blocks to the enterprises of the Far East of Russia, to Korea, China, etc.

Projected parameters of manufacture.

Taking into account characteristics of a raw-material base of the project and the productivity of stone-mining and stone-processing equipment used nowadays, the expected volumes of manufacture will be:

The outlay part of the project (structure of investments)

Charges for prospecting, design and spadework in quarries - 2 million$.

Charges for the quarry, transport and boring equipment - 6 million $.

Choice of the equipment:

·    The quarry equipment - bulldozers, dredges and loaders of the company Katerpiller, dredges with additional hinged equipment Khunday

·    Quarry dumpers - Volvo

·    The chisel equipment - CompanyTAMROK (Finland)

Stages of realization of the project.

The first year.

Purchasing necessary quarry technical equipment  through the leasing company with the term of delivery to Buryatia till May 2006. Construction of roads in the quarry - 1 month.

Construction of the Nikolaevsky quarry, final prospecting and construction of the quarry, the Burguysky display of labradorite 5-6 months by two independent divisions simultaneously. Under the condition  of favorable (fast) results, purchase in leasing the chisel equipment of the company "ðþëïíé" and extraction of commodity blocks.

The second year.

Achieving industrial capacities and escalating of volumes, contracts on realization of blocks.

Designing and construction of a factory on manufacture of  modular tile and non-standard products (the equipment of the company "PEDRINI" Italy, expenses about $ 10000000). Financing of the project - leasing of the equipment, profit from selling of blocks. Place of  the factory — a former factory BuryatFermMash, the location is Ulan-Ude, our property S - 48 000 sq.m. Creation of manufacture will allow to increase volume of profit not less than in 3 times, in comparison with realization of commodity blocks.

The third year.

Investigation and development of other deposits of stone-coloured raw material. The purpose is to have full basic color scale on stone-coloured raw material that will allow  quickly to react to demands.

Advantages and disadvantages of the project.

Disadvantages.

A great volume of investments. A long period of  compensating expenses. Not complete prospecting of deposits. Absence of experience of works in modern equipment and enginery.

Advantages. 

Taking into account, presence of variety of a raw-material base in Buryatia, and also available communications (roads, electric systems, etc.) there is a real opportunity for a short period (5-7 years) to create a network of quarries which production due to its assortment would satisfy demands of any consumer. The geographical location of Buryatia allows to carry out deliveries of production to all main countries - consumers (Europe, China, the USA, the countries of South-East Asia) with reasonable expenses.  Prospecting works on search of deposits of exclusive stones, their subsequent extraction, will allow to sell them in the world markets, where they will cost up to 2000 $ per 1sq.m.

Great needs in block raw material both in Russia and in the whole world.

Low competitiveness in  home market.

Competitive price on production in comparison with the best world manufacturers.

Absence of large capital expenses for arrangement quarries.

Providing with powerful modern quarry technical enginery and equipment will allow to execute necessary volume of works on construction quarries in a short period of time.