A.  Project Opportunity Description:

A1.  Project Name:

  а. Short name:

  Dolomite based energy-saving technology of magnesia cement, lime and astringent gypsum materials production

  b. Full name:

  Foundation of modern magnesia cement, lime and astringent gypsum materials production plants based on energy-saving technology

  c. Summary description:

  This project is aimed at the foundation of modern dolomite recycling plants and production magnesia cement, lime and astringent gypsum materials using energy-saving technology

  А2. Progress Status:

  Pre-investment phase. The company conducted a target research to develop the technology, to make feasibility studies and to determine the equipment. The project needs investor.

  А3. Organizations involved and their roles:

  1) The Administration of the Free Economic Zone «Vitebsk» – the body of registration at FEZ’s «Vitebsk» territory with special tax and custom regime.210605 Belarus, Vitebsk, P. Brovky str. 50The Head of the FEZ «Vitebsk» Administration Mr. Shevchenko Leonid, т/f (+375212) 26 08 02; e-mail: fez@vitebsk.by, http:\\ www.fez-vitebsk.com 2) LLC «Eurokirpich» – the initiator of the project, loan recipient: SAMOSHUK Gennadij, director. Belarus, Minsk tel.: (+37529 693 00 42), fax: (+37517 208 69 99), e-mail: Belsnab@inbox.ru

  А4. Project Description:

  The storage of «Gralevo» dolomite in Ruba (Vitebsk region, Belarus) is about 710 million ton. The idea of new energy-saving technology is the following: to change the slow and sluggish heat-exchanging process of lime and cement production in rotation ovens and high-power-consuming process of grinding in ball mills to a fast heat-exchanging annealing process of lime and cement production from fine carbonate raw material (dolomite powder) in a suspension state (gaseous suspension). The development of an essentially new technology based on a fast annealing process, using an aggregate producing high-quality fine lime and magnesia cement from dolomite powder, is mostly finished now. The essence of this new technology is that the processes of drying, grinding, heating and decarbonization develop in a fine dispersion environment in gaseous suspension. The speed of СаСО3 decarbonization process grows by two orders compared to the existing technology and the whole cycle takes 70 seconds time instead of 2.5 hours. These fast processes are developed not in bulky metal-consuming, fuel and energy wasting rotation ovens but in stationary heat-exchangers and reactors in suspended state in gaseous flow. Fuel and electricity consumption at lime and magnesia cement production is reduced by two to three times. Highly active fine ground first-degree lime and magnesia cement are produced.

  А4a. Project cost (mln USD):

  30.0

  A5.  Background / history / overall programme / related or similar projects:

  The basic activity of LLC «Eurokirpich» is the production of building materials, design works.

  A6.  Environmental impact summary:

  Emissions are within permissible rates. Modern equipment and technologies let reduce the total amount of emissions.

  A7.  Possible obstacles/ problems/ risk assessment:

  The most essential risk is the probable electricity price increasing.

  A8.  Term of realization / term of recoupment (years):

  2,5 / 2,5

  A9.  Project’s branch:

  Construction materials production

B.  Capital Cost Items (additional requirements for project):

B1. Project physical components

B2. Capital cost (mln USD)

  Purchase of the equipment (Denmark)

  28.0

  Net working capital

  1.5

  Other needs

  0.5

  TOTAL

  30.0

C.  Capital Resources Available from Sponsors/ Proposers:

C1.  Resources 'in kind', grants, investments, equity / ownership, etc.

C2. Amount (mln USD)

  Own funds of the initiator of the project

  0.1

D.  Required Financial Assistance:

D1.  Financing gaps, type of financial assistance required:

  There’s a necessity to finance the equipment purchasing.

D2.  Sources of finance

D3. Type of investment

D4. Amount (mln USD)

  Foreign investment funds:

  Foreign direct investments, credit

  30.0

D5.  Financial/ International Institution Name:

E.  Demand (users) and revenues:

E1.  Type of users/ markets, volumes, pricing, revenues, quantifiable benefits/ savings:

E2.  Revenues (Sales)

E3. Amount (mln USD)

  Incomes from sales

  80.0

F.  Operating and Maintenance Costs:

F1.  Cost components, strategies for cost recovery, operating organisations, subsidies, etc.:

  For projects realization the enterprise has its own unoccupied production buildings, engineering infrastructure, sources of energy and part of the equipment. There is no need to build new construction.

F2. Cost Item

F3. Amount (mln USD)

  Raw materials

  41.0

  Costs for employees

  5.0

  Amortization

  2.0

  Other needs:

  4.0

  Total:

  52.0

G.  Net Income Value:

G1. Net Income Value

G2. Amount (mln USD)

  Net profit

  28.0

H.  Project information source:

H1.  This form was completed by:

  SAMOSHUK Gennadij, director of LLC «Eurokirpich», 213824, Vitebsk city, Zhurzhevskaya str., 15

H2.  Organisation (address):

  The Administration of the FEZ «Vitebsk», P.Brovky str. 50, Vitebsk, 210605 Belarus

H3.  Тel/Fax/E-mail:

  tel. (+375 212) 26 01 66 fax (+375 212) 260802, e-mail: fez@vitebsk.by, www.fez-vitebsk.com

H4.  Date:

  June, 2009

H5.  Supreme Organization:

  FEZ «Vitebsk» Administration