Description

Owner speculatively sells 3 dolomite quarries at $1m, that is 20% of valuation of proven total monolithic deposits of 6,500,000cbm, the mineral commodities exploitation in Eastern EU.
Also, or alternatively, seeks JV to restart up plant manufacturing of dry building mixes, Dry-Mortar based on dolomite, the development opportunities for more added values.
Plus access to more quarries.

Open pit mining, virgin quarry.
Current market price $7- $14 per cbm.
Expenses on cost of local works $2 per cbm.
Gross margin 70%-85%.

Output product: dolomite, strength class 600-900, LA standard coefficient 28, monolith, gravel, crushed sand, powder.
Used for a wide range of building materials available:

-dolomite chips, as aggregate for Portland cement concrete, bituminous mixtures, road fillings;
-peeled dolomite, for building foundations, walls, pier construction, fencing and decorative landscaping elements;
-face plate (with rough sawn dolomite, milled, ground or polished surface);
-crushed dolomite with the proper chemical composition, as an ingredient in glass, cellulose or mineral wool production, the flux of metal smelting, as a fire resistant material for melting furnace repairs;
-dolomite sand, for sand blasting and low-strength concrete block manufacture;

-dolomite favor, as a mineral filler and asphalt concrete production;
-dry mortars, plaster and putty, screeds, waterproofing and special materials;
-paving, facing (exterior) tiles.

For DryMortar JV, old manufacturing facilities and infrastructure are available near the spot.
Transportation by nearby railroads and sea route.
No company makes DM here still.
JV can establish its name throughout the surrounding communities and as the supplier of choice for government projects, commercial and residential contractors.
To get high end customers, corporate and individual, with premium priced construction materials.

Posted Jan 18, 2011

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