Presentation on theme: "Bwanje Cement Project Presentation"— Presentation transcript:
1 Bwanje Cement Project Presentation London – 20th March, 2013
2 Bwanje CementBwanje Cement Company Limited (BCCL) has for sometime been working on a green field cement plant to be constructed at Malowa Hills, Malawi.The planned plant will consist of one 500,000 MT annual capacity production line.
3 Bwanje Cement Company Ltd Bwanje Cement Company Limited, a wholly Malawian owned company was incorporated on 19th March, 2010, with Company Registration No 10401BCCL Current Shareholders are:Umoza Holdings Limited ,Kanjere Associates (Architects),Zingano Associates (Architects),Anderson Engineering(Mechanical Engineers),Matundu Holdings(Investors)Umoza Holdings has been incorporated as a special purpose vehicle (SPV)
4 Bwanje Cement Co. Ltd cont.. Mining Licence/rights was granted to Bwanje Cement Company Limited over the Malawi and Khungule Hills Limestone deposit by the Malawi Department of Mines in April, 2010, Licence number ML0186/10Mining Licence is valid for an initial 15 year period and renewable, covering a 15 sq. km of concessioned land;Malawian Laws provide that land rights are secured together with mining rights provided that relocation and compensation is agreed between settlers and rights holders;Environmental approval have been granted by the Department of Environmental Affairs in Malawi;
6 Project Description cont.. Bwanje CementSite Locality + Lease AreaMalowa HillRailway Line to Lilongwe and BlantyreKhungule HillTarred Road (M5) to Blantyre & LilongweESCOM Sub-station
7 TECHNICAL OVERVIEW MINING AND GEOLOGY Bwanje CementMINING AND GEOLOGYInitial studies carried out by Met-Chem, a Canadian consulting company commissioned by Malawi Government and funded by the World Bank covered surface mapping 2481 metres of drilling and 647 assay samples which proved 15million Mt at Malowa Hills.The exploration programme was for chemical grade lime.Kai Batla reviewed the data and produced models
10 Current Results Cut-off CaO% Tonnes Percent (%) CaO CaCO3 MgO MgCO3 Bwanje CementCut-offCaO%TonnesPercent (%)CaOCaCO3MgOMgCO3TotalCarbonatesSiO2Al2O3Fe2O30.0046,809,00045.4680.924.609.6190.538.941.520.5110.0046,803,00045.4780.934.599.6020.0046,781,00045.4880.964.589.5730.0045,884,00045.8381.579.5891.168.581.4440.0038,543,00047.7184.923.787.8992.817.681.3250.0015,169,00051.6992.001.843.8595.854.771.040.30
11 TECHNICAL OVERVIEW cont.. Bwanje CementBCCL and PPC carried out a joint drilling programme in September, on Khungule Hill as a potential source of limestone uncontaminated by granite and/or dolerite intrusives.The drilling consisted of 25 inclined RC holes on sections 200m apart with 100m hole spacing. Hole depths varied from 30m to 73m.Downhole samples were collected every meter and full analyses of the 1561 samples were undertaken at PPC Lab and counter checked by Set Point Lab;The scope of work included the creation of a geological database, ore body modelling, block model creation and grade interpolation, pit design and reserve reporting and resource classification.
12 Geomagnetic Survey TECHNICAL OVERVIEW cont.. Bwanje CementGeomagnetic SurveyA hand-held geomagnetic survey was conducted by C. E. Kaphwiyo, consulting Geo-Physist and reported in November 2011.A low magnetic signature indicates a potential for sub-outcropping limestone.
13 TECHNICAL OVERVIEW cont.. Bwanje CementBased on the recent Geomagnetic Survey, the area of most potential forfurther prospecting is to the North East of the Malowa hill. The surveyindicates a wide unit of sub-outcropping limestone striking in a SouthEasterly direction towards the Khungule hill.All inclusive drilling and sampling could also be conducted to test the Malowahill resource.The tonnage distribution for the Bwanje deposits are illustrated below:
15 CEMENT MARKET LHA Management Consultants (LHA) were contracted to Bwanje CementLHA Management Consultants (LHA) were contracted toproduce an independent review of the Malawi cementmarket and assess the competitive market situationThe report also gives an overview of the economic andinfrastructure investment prospects in Malawi, as well asa cement industry perspective with respect to futurecement production capacity and demand and pricingtrends.
16 CEMENT MARKET Contd/…Bwanje CementCEMENT PROJECTED PRODUCTION CAPACITYLafarge strategy is to supply Malawi through its production units in Zambia and Tanzania.Shayona proposing expansion to 100,000 mta;Cement Products Limited is a new entrant with projected production capacity of 90,000 mta
17 CEMENT MARKET Contd/… Regional Cement Demand in 2010 and 2020 Bwanje CementRegional Cement Demand in 2010 and 2020
18 PROJECT FUNDING Equity Investors Umoza Holdings - Sponsor Equity; Bwanje CementEquity InvestorsUmoza Holdings Sponsor Equity;Private Placement – Issue of shares for cash in Umoza Holdings;Strategic Equity Partner – controlling shareholder and operator;Sponsor Equity will be cash and contribution of the mineral asset;Strategic Equity Partner will contribute cash into the project.
20 CONCLUSIONBwanje CementMining licence and Environmental approvals granted, but EIA has to be verified for World Bank Compliance;28 million MT indicated cement grade limestone deposit to be signed off by competent person;Market study for both Malawi and the region completed;FLSmidth have provided preliminary process and plant designs ;Investment Certificate with the Malawi Investment and Trade Centre obtained;Geotechnical Survey to be carried out for factory foundations;Access road from Road M5 to be improved to all weather;Optimally positioned close to essential infrastructure;Low per capita consumption presents upside potential;Power supply committed by ESCOM Malawi;