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Waste Diatomite Dressing and Diatom Ooze Integration Project of Baishan City
2016/03/24     Source:

 

1. Introduction to the Project

1.1 Project Background

1.1.1 Product Introduction

This project is based on the current situation of diatomite resource and its development in China and Baishan City, starting from the idea of intensification, highly-efficient and comprehensive use of diatomite resource, adopting advanced and mature ore-dressing and deep-processing technologies which have independent intellectual property right, to establish a low-grade production base for diatomite ore-dressing and diatom ooze wall materials and to process these two items with a promising market prospect. Main products as diatomite and diatom ooze are newly environmental-protection and energy-saving mineral materials making full use and promoting mineralogical diatomite characteristics, fit for the need of modern economic and social development, enjoying a sound market prospect and vast development space.

Diatomite is high in purity, with total pore volume more than superficial area, thus it has better absorbent, insulated and insulative properties as a new and recyclable low environmental-load and low cost water-treating materials; the special papermaking sewage agent planned to produce in this project not only works well in removing COD, BOD and suspended solids, but applying the water-treating diatomite as filler to paperboard production.

1.1.2 Market Overview

With the deterioration of atmospheric conditions, more and more people are concerned about PM2.5. However, lots of people do not know that painting is one of major reasons causing PM2.5. The renovated house under painting hazards should be ventilated for some time before living in. The respiratory protective measures shall be taken during painting. This is only one of the most basic aspects of painting hazards. From another point of view, painting also plays a significant role in causing haze problem. In consideration of indoor and outdoor ambient air environment, water-based paint with the representation of diatom ooze shall replace the organic compounds volatilized paintings.

The application of water-based paint with the representation of diatom ooze can help to eliminate toxic substances such as benzene, toluene, xylene and formaldehyde. Diatom ooze has eight functions such as air purification and humidity regulation, etc. With the development of diatom ooze enterprises and the upgrading of technology, the main properties of diatom ooze are beyond these of paintings. Water will not cause hazards during the volatilizing process. Diatom ooze is also helpful for environmental protection and energy conservation. It has become a common consensus that diatom ooze will eventually replace paint. Fortunately, “Atmospheric Pollution Prevention Action Plan” and other national policies have stated clearly that the promotion and wide use of water-based paint are required. Ministry of Environmental Protection, the Ministry of Finance and State Administration of Taxation have conducted a joint research on the collection of consumption tax to some special solvent-based coatings in order to promote the development of water-based paint industry with the representation of diatom ooze.

It is one of China’s basic state policies to implement sustainable development strategy and construct ecological and environmental-protection while using low-grade diatomite to make diatom ooze is an important measure to protect environment, save energy, realize comprehensive use of resource and improve environment, also important content to practice sustainable development strategy. In China currently, diatomite for interior wall like diatom ooze is only limited to high-end markets (including construction of 200Yuan per square meter), and will expand to mid-low end market. Nationwide demand has exceeded 6.5 million m2 along with an annual output value beyond 1 billion Yuan by 2015; it is expected to exceed 20 million m2 with an annual output value up to 3 billion Yuan.

Price for diatomite (dry powder with water content of 10%) in the current market: 1500-2200 Yuan/ton. The price will present an increasing trend in the few years to come as diatomite productivity is unable to meet the market need.

Diatom ooze wall materials have many advantages, which are very competitive in the market, especially in the modern cities where people’s living standard is continuously rising. Diatom ooze is the choice of people who are in pursuit of environmental protection. From this point of view, the prospect of diatom ooze enterprises is very considerable.

In conclusion, this project can expect a sound market prospect.

1.1.3 Technical Analysis

(1) Diatomite

Diatomite gained by adding certain amount of water in the diatomite raw ore for stirring dispersion along with some dispersant and then conducting sedimentation dispersion.

(2) Diatom ooze

It is made by adopting wet mixing compound modification, taking diatomite from second and third grade ore-dressing as raw materials, and mixing by adding prompter to realize compound modification.

1.1.4 Advantageous Conditions of Project Construction

(1) Policy conditions

External investors initiate by investment ginseng deep-processing, medicine, forestry, specialty and new material production enterprises, with fixed asset investment up to 50 million Yuan (including 50 million); over 0.2 billion Yuan (including 0.2 billion) for mineral water production; for enterprises operating for over 10 years from the year of its running, the first two-year of corporate income tax for local retention is specially used by fiscal departments of same level to support the enterprise projects. Newly-purchased fixed assets (excluding house and building) by external investor in initiating industrial enterprises in the year can have their depreciable life shortened based on not more than 40% as stipulated in the current depreciable life. And their transferred or invested intangible assets can have their amortization period shortened based on not more than 40% as directed in the current amortization period, unless otherwise regulated in contract.

(2) Location advantage

Baishan City is situated in Jilin, west of Changbai Mountain, adjacent to Yibian Korean Autonomous Prefecture in the east, bordered to Tonghua City in the west, adjoined to Jilin in the north and facing Hyesan of Korea across the Yalu River in the south. It is a major node city in the east of northeast China and central city of southeast Jilin Province.

(3) Resource advantage

Such more than 100 metal and non-metal mines as coal, iron ore, quartz sand, silica, talc, diatomite, bentonite, gypsum, crystal pumice, scoria, marble, kaolinite, agate, lead, zinc, copper, magnesium, gold, antimony, silver, and phorsphorus have been discovered in Baishan to occupy 73% of that discovered in Jilin Province as a while. Rich diatomite products of Linjiang City in the area have found a good sale in Asia-Pacific Area,

1.2 Content and Scale of Project Construction

1.2.1 Product Scale

Construction scale is set as annual diatomite output of 300000 tons, and diatom ooze for 1 million square meters.

1.2.2 Construction Content

Newly constructed area is 46341m² with newly-purchased equipment for 587.

1.3 Total Investment of the Project and Capital Raising

The total investment of the project is RMB 338.99 million Yuan, including construction investment of 283.0567 million Yuan.

Table 1: Summary Table of Total Investment of the Project     Unit: RMB10,000

No.

Expense Name

Amount of Investment

Proportion of Total Investment %

Remarks

1

Construction investment

28305.67

83.5

 

2

Interest incurred in construction period

 

 

 

3

Working capital

5593.33

16.5

 

 

Total investment of the project (1+2+3)

33899

100.00

 

Note: "RMB10,000" in the Table shall be RMB.

1.4 Financial Analysis and Social Evaluation

1.4.1 Main Financial Indexes

After the project reaches its output, the annual operation revenue is 417.83 million Yuan, and profit is 96.85 million Yuan. The payback period is 4.5 years (after taxes, including construction period of 1 year), and return on investment is 28%.

Table 2: List of Major Indexes for Forecast of Economic Benefits 

No.

Name

Unit

Index

Remarks

1

Sales income

RMB10,000/a

41783

Normal year

2

Total profit

RMB10,000/a

9685

Normal year

3

FIRR of all investments

%

25

After income tax

4

FNPV (Ic=10%)

RMB10,000

19890

After income tax

(operation period 10 years)

5

Period for recovery of all investments (after tax)

a

4.5

Including 1 year of construction period

6

Rate of return on investment

%

28

 

Note: "RMB10,000" in the Table shall be RMB.

1.4.2 Social Evaluation

The current product structure in China is as single as quality diatomite resources mainly put into beer and beverage production as a filter aid; mid-low quality diatomite is mainly used for insulating brick production. Ore-dressing production line scale of low grade diatomite is small, accompanied by low mechanization and atomization, and unsatisfactory quantity and quality for the market need; environmental-protection materials used in sewage treatment and exhaust absorption by making the best of diatomite structural features, high-level modified asphalt road materials, high-dispersion ultra-fine white coal black for silicone rubber and other deep processes of diatomite base are small in scale and unstable in quality; environmental-friendly diatomite loading nanometer TiO2 material that can be used in highly-efficient purification of water and air is yet to be industrialized. Therefore, the project implementation will optimize the industrial structure of diatomite processing, enhance the level of diatomite-processed products and elevate the economic benefit of diatomite processing industry.

1.5 Cooperative Ways of the Project

Joint venture.

1.6 What to be Invested by Foreign Party

Capital.

1.7 Construction Site of the Project

Low-carbon and Recycling Economic Industrial Park of Baishan Economic Development Zone.

1.8 The On-going Condition of Project

Feasibility research report have been prepared.

2. Introduction to Partner

2.1 Basic Conditions

Name: Administrative Committee of Baishan Economic Development Zone

Address: No.22, Tongjiang Road, Baishan City

Legal Representative: Sui Keyi (Director of Management Committee)

2.2 Project Undertaker Overview

Jilin Baishan economic development zone is located in the southeast of Jilin Province, in the southwest of Changbai Mountain, and on the river side of Hunjiang, a branch of Yalu River. This is a provincial development zone established upon approval of People’s Government of Jilin Province in November 2002. In January 2007, it was approved to be a circular economy demonstration area of Jilin Province by the Provincial Development and Reform Commission. Control area for economic development is 100.7 square kilometers, 255 kilometers away from the provincial capital Changchun, 340 kilometers away from Shenyang, and 160 kilometers away from the Changbai Mountain Airport under construction. It’s convenient in transport because there are highway and railway lead to everywhere.

Baishan economic development zone has become the new growth point for Baishan economy, and a platform and carrier of the municipal foreign investment. Development zone not only form a complete set of infrastructure, but also bear strong project capacity. Furthermore, the surrounding is very rich in mineral resources: for example, limestone, quartz sandstone, dolomite and other reserves are more than one hundred million tons, which can provide high-quality and sufficient raw materials for manufacturing industry, such as cement, glass and magnesium etc.; special resources in Changbai Mountain, such as ginseng, American ginseng, fructus schisandrae, wild vegetable and edible fungi, can develop and enlarge green health industry.

2.3 Contact Method

Contact Person of Project Unit: Han Dong

Tel: 0439-5088807

Fax: 0439-5088800

E-mail: bsjjkfq@126.com

Website of development zone: www.bskfq.cbs.gov.cn

 

Contact Person of Project City (Prefecture):

Contact Unit: Economic and Technical Cooperation Bureau of Baishan City

Contact Person: Liu Caixiu

Tel: 0439-3594265    18629751799

Fax: 0439-3594778

E-mail: lcx9881@sina.com

Website of City (Prefecture): www.cbs.gov.cn

 

 

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