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Filling LPG Plant (SPPBE), Indonesia

Seek investor’s to build a Filling LPG Plant (SPPBE) at South Kalimantan and Central Sulawesi, Indonesia

Indonesian biggest Gas & Oil Company already convert the kerosene fuel to LPG, they need more 100 plants at East Indonesia. Each plants need US$ 2 million.

The Indonesian Government was to convert from kerosene to LPG wich is more environmentally friendly and more efficient. Distribution of the conversion has been done in accordance with the map below.

Use the number of LPG will be very high, especially in densely populated areas such as provincial capitals and district capitals throughout the territory of Indonesia.

3 kg LPG tubes one of the commodities that are subsidized by the government so that the whole community will use it , which as foodstalls, restaurant, household consumption and others.

PT Pertamina leaving the management/development SPPBE to private/foundation/cooperatives that wish to cooperate in the provision of sufficient LPG to meet needs of users/consumers all over Indonesia.

South Kalimantan has a number of high population density is one of the cities in the distric Pelahari Banjarbaru that in fact the use of LPG is High.

Business Plan

PT Pertamina policy give the permit for SPPBE in 1 district [Kabupaten] max. 2 unit. Opportunity is still wide open for establishment SPPBE outside Java Island. LPG Filling Business one profitable business in Indonesia especially eastern Indonesia that is still a little plant that gets SPPBE and operating permits.

The use of LPG as well as highly efficient and environmentally friendly than using kerosene and get subsidies from the government. By having a lot of charging stations will increase the gain and will get ease licensing oh PT Pertamina.

With the resources and experience that we have as a kerosene dealer for 12 years prior to the conversion and development consultant SPPBE, we strongly believe and trust can provide benefits and return capital to our investor with less than 10 years.

Term loan :
Loans = Rp. 20 Billion
Interest Rate = 12 % pa.
Duration = 8 Years
Installment per month = Rp. 318,353,496.49
Grace period = 12 months
Collateral = Funded Project
Bankers = PT Bank BJB Cilegon Branch
Insurance = PT Jasa Asuransi Indonesia [JASINDO]

Contact team@capital.com.my for more info.

PRE-IPO Australian Mining Resources Company

INTRODUCTION

An Australian Mining Resources Company has the vision to become a profitable mining and exploration Company in Australia and overseas that will excavate and extract gold and other minerals from resource deposits. Achievement of this objective will create wealth for shareholders through capital growth and dividends. The Company aims to achieve this goal through a strategy to acquire undervalued and somewhat distressed small to medium scale mining projects and mineral assets that will provide profitable income streams to the Company.

The Company has identified an opportunity where significant profits can be achieved by acquisition and joint venture of existing small to medium scale placer gold operations that have proven gold deposits using the latest placer gold recovery techniques. Gold recovery techniques have been substantially revolutionised over the past 20 years where gold recovery wash plants have become mobile, mounted on a flat-bed semi-trailer chassis and able to process gold bearing material up to 400 tons each per hour. These wash plants boasts fine gold recovery down to 50 microns, making it effective to recover between 95% and 98% of the gold suitable for river bank-run sedimentary material processing for a high yield and very cost effective system requiring minimal operator skills. Several wash plants can be grouped together in parallel to process 1,000+ tons per hour and very capable of processing lower grade ore bodies.

The Company is reviewing a number of opportunities to acquire existing producing gold mining operations that fall into the distressed asset category and is seeking to raise the capital required to acquire some of these assets and become an immediate gold producer in Australia, USA and Canada. A number of projects are also being reviewed in Mongolia.

SEED CAPITAL INVESTMENT

The Company is seeking initial seed capital up to AUD $200,000 (MYR 625,000) for the immediate company requirements and progress immediately to list on the Australian Stock Exchange (ASX) through an initial public offering (IPO). The seed capital will be used for:

* Company Office Establishment – Perth (Western Australia)
* IPO requirements including prospectus; legal requirements; ASX initial listing fees
* Due diligence requirements of project acquisitions
* Application for prospective exploration projects (Australia)

The IPO will raise the capital required to acquire the gold mining operations and exploration projects. It is proposed to raise the capital through the IPO prospectus with 3 levels of subscriptions:

– Minimum Subscription
– Full Subscription
– Over Subscriptions

It is anticipated the minimum subscription for the IPO will be around AUD $5 million.

The higher level of subscription would allow the Company acquire additional gold producing projects; increase the exploration budget; or acquire additional equipment to increase the production of one or more mines. The current project opportunities and funding requirements for each project are described below.

RETURN ON INVESTMENT

It is anticipated the seed capital requirement of up to AUD $200,000 required under this offering will be share equity based at a price of AUD 5 cents per share. The minimum listing requirements of the Australian Stock Exchange is AUD 20 cents per share. This will a potential of up to 300% return on investment for a successful ASX listing. It will be the investor(s) responsibility to ensure they understand of pre-ipo seed capital investing and that some of the investment may be subject to an escrow period.

TIMEFRAME

The company is currently writing a prospectus inhouse for the proposed company acquisitions and projects. The Company has received positive feedback from Australian brokers and promoters. The Company will engage into broker negotiations during January 2012. It is anticipated to list the Company onto the ASX by April 2012 or earlier; providing all necessary listing requirements have been completed.

MANAGEMENT

The management team is in place and has the necessary experience ready for a listed Company including Commerce Degree (Economics and Banking) & Applied Finance; experience in business management, resources sector and financial services industry, stockbroking and wealth management.

EXIT STRATEGY

The Company will progress for a stock market listing on the Australian Stock Exchange (ASX).

ANNUAL EARNINGS

The gold producing projects at hand are currently being assessed. The Company is expected to be cash flow positive with Earnings Before Interest and Tax (EBIT) in excess of AUD $2,500,000 per annum.

CONCLUSION

Many new exploration Company\’s appear on the Stock Market with an exploration program in the hope to find an economical resource to develop and mine. Our Company aims to achieve positive cashflow immediately by acquiring existing, producing mineral deposits where the cashflow can be used to fund further exploration, development of existing mines and acquisition of additional mines.

CONTACT INFORMATION

Dennis Fry ( westaustfry@gmail.com)

Postal Address : PO BOX 551
QUEANBEYAN
State : NEW SOUTH WALES
Post Code : 2620
Country : AUSTRALIA

Telephone : +61 435 818 048
Fax : +61 7 3112 6111
Mobile: +61 435 818 048

Coal trading company in Indonesia is seeking financier

The coal is from west Kalimantan, the value between usd5m per shipment, have 1 year contract, the buyer from Korea will issue at sight LC with CIF term.

More information:

We have company at Indonesia (PT) and Labuan offshore Malaysia (Limited). Our main business activity is trading. For coal business, we have good end supplier at Kalimantan and Sumatra we also have a potential buyer from Hong Kong, India and Korea, most payment from buyer is irrevocable letter of credit at sight. Each buyer looking for 50,000mt per month minimum and up to 100,000 mt every each buyer. We also have offer the coal concession but need big money to buy the area and operation facility.

We also have contact with our consultant which can help us by issuing back to back LC or usance LC, so we can arrange our buyer issue the at sight LC to our consultant and they issue usance LC but cannot SBLC. At Indonesia also we cannot get loan by usance LC, that why we are looking for lender can give us loan against at sight LC, usance LC or you can issue SBLC. We spoke to our banker like BUKOPIN bank at Banda Aceh, the bank agree to give us loan by SBLC at a collateral, if possible also if we can lease SBLC, but we don’t want bank know that instrument is lease.

Some problem also the bank will not issue a conditional letter to show to funder, and if the draw down happened we cannot transfer direct from Bukopin bank to outside, we prefer we transfer local or we do transfer to our another difference bank in our account and we transfer out. The Bukopin Bank give us facility up to usd100 million by stages, example usd10, 20, 20 and 50m.the draw down between 10 banking days. Project we submitted is coal trading and coal mine, iron ore trading and iron ore mining located at Aceh.

If the lender cannot issue SBLC also we also try to fine which lender can issue mt103/23 to some provider which stated will pay within 14 banking days so after our draw down within 10 banking days we can pay direct to provider and cancel the mt103/23 or we transfer to lender with amount and plus profit and the mt103/23 is release at the provider.

Bukopin bank which is gives us facility against SBLC. Most facility is over draft 60% trade line 40%.bank give us loan against sblc is depend on maturity SBLC. All our share holder and director are clean and clear, no black list person.

enquiry@capital.com.my

Thailand Bio Oil & Renewable Energy Investment

Project Title

Bio Crude Oil Refinery & Activated Carbon, LMB

Finance Request

USD$2,500M , Each BREIZ Basic Cost Is $115M, cover land 1,600ha +

LOAN : Interest Rate 5.0-7.0% and Start Repay Term 2-10 years.
Joint Venture : 20 years/average $125M , JV Get Profit Sharing 10%
Collateral

Deposit 3% [$75M] at K9GB’s Account for K9GB’s Business Partners/Land Lord

Principles : Plantation Hybrid BAMBOO As The Bio Feedstock For Renewable Energy Plants

Annual Income [Exclude Drinking Water, Bio Fertilizer, Carbon Credit 15% annual income]

o Estimated Annual Income $74,577M [2,282,056MB], annual increase 10% onwards.

o Costing Operation $4,000M , Profit Before Tax $70,577M [2,159,656MB/year].

o Taxation 30% pay $21,173M, From 9-20 years under BOI exempt 8 years.

o Net profit $49,404M [1,511,759MB] x 20 Years = $988,078M [30,235,187MB]

o Joint Venture gain Profit Sharing [PS] 6-10% is $4,940M /year x 20 years=> $98,808M

Phai Kim Zung : Bambusa Bacheeyana The Greatest Biomass Of Humanity and Earth !! Why Biomass Must be PKZ in next future ? 16 Reasons , Right Biomass

1. Low cost plantation,
2. Most fast growing,
3. Easy to Take Care,
4. Edible Sweet Shoot,
5. Plentiful seedlings,
6. Thick walled canes,
7. Able cut after 2 years ++,
8. Re Growing 1-2 months,
9. 108 Usefulness in Artisan,
10.Highest heat colorific values charcoal,
11.Canes 1,400 tone/ha,
12.Seedling 65,000 pc/ha,
13.Sweet shoot 20tones/ha,
14.Income > 60 times of Rice growing, real lowest cost.
15.No need chemical insecticide, just need bio fertilizer, water form good man only.
16. Bamboo is bright future to solve Global Warming Crisis, Solve Poverty of Humanity.

Estimated basic funding needs 3,100 MTB [$100M], from investment joint venture and Loan will used for A& B Zone. Project will have Operation Cost 3,600 MTB [$117M]. Net Profit from Full Operation 25,336 MTB [$827M], we will pay taxation is 30% around 10,858 MTB [$354M] per year. Project will have Thai Farmer and Network 84,000 persons cooperation sustainable long live 50 years.

Return As Great Profitability 20 years is 1,464,949 MTB or $47,874M. . Break Even Point 2,181 MTB [$71M], mean within first year we can freedom. . Pay Back Period 1st year project will run full capacity, 8 plants get max income. . Internal Rate Return/IRR at end 2030 is 713% of 158,194 MTB [$5,169M], . Net Present Values at finished project 207,195 MTB [$6,771M].

enquiry@capital.com.my

Brazil Gold Mine Project

We have a Gold Mine Project in Brazil that has 5 Billion Dollars of In Ground Assets ( Gold )
We are offering a JV with the BG provider :
The provider issue the BG for 3years and as soon as we get the financing from the Bank using the BG we will pay for all the expenses and leasing fees
At the end of 3years we will pay back the Bank and Release the BG
The Provider will have the In Ground Assets as Collateral for 3years plus 30% equity on the Gold Mining Project

Executive Summary

xxx Mining Resources, Inc (The Company) is seeking an investment of US$300m to fully develop the Cavala Greek Gold Mine project site. The site comprises 8,800 acres (3,562.5 ha) which is located in the right edge of the Iririacu River, in the municipal of Luis Domingues, northwest Maranhao State, Brazil. Its geographic coordinates are 01 30.00’ S, 46 00.00’ W. The city of Sao Luis Domingues is 20 km away, while the nearest international airport and shipping port is 350 km by sealed road, from the mine site.

Brazil is an industrialized country of ~180 million people. A top 10 economy with exceptional infrastructure. The transport economy in the major centers such as Sao Paulo (or other major center) is not dissimilar to North America – paved two-lane, four-lane, and six-lane roadways with overpasses. It has a diversified economy / industry with abundant cheap power; 95% of it hydroelectric. It has an established mining culture. The Brazilian economy largely tailors itself to mining which accounts for about 5% of GDP. The value added (mining related) collateral businesses pushed the figure to ~18% of GDP.

The cost basis for much of the equipment (locally manufactured), power and labour is inexpensive relative to other mining economies like Australia. Brazil is an exceptional platform from a mining industry and business viewpoint. Their mining industry / culture has been active for hundreds of years. There are a number of American Gold Mining companies operating in Brazil including Amex listed minnow Yamana; the worlds’ largest producers are Barrack (South Africa) and Newmont Mining (Australia).

Mine Potential: Cavala Creek mine was searched by our Team in the period of July/2006 through December/2006, the drill was the principal method of investigation, and was used the Banka Drill
The studies of corrections of the Banka Drill nominal values, in the 81 executed holes had disclosed maximum values of up to 8.18g/m3 of gold; on the other hand, the maximum content inside the gravel was 14.21g/m3. Although the average depth of the 81 holes is 2.82 meter and the average of the 6 holes, random in 8,800 acres, done manually has reached value of 2.62 meter of depth; we will use only one value below of these, for consideration of the reserve.

The gold met in the alluvium, elluvium and colluvium is secondary, that with the continuation studies and the gold extract act, there is a big opportunity of finding the primary gold location that will increase the gold reserve hundred times. We know that the particles of elluvium and colluvium are in the same place or nearness of the rock source. The feasibility operating plan assumes a large alluvial gold mine containing proven and probable reserves of approximately 3.5 million ounces of gold. Complying with the rules of the Brazil’s Code of Mining, the Company, intends to continue its research to fully determine the extent of known reserves and to properly allow the Company to choose the correct methodology for the extraction of the auriferous deposits in the area. The company has obtained the necessary permits to undertake this project ..see Final Research Report.

Management: The site General manager will be xxx. The company plans to hire an experienced Mining Engineer with at least ten years experience plus Geologists (3) and Lab Technicians (4). Employment will peak at more than 600 operating personnel. On-Site accommodation is planned for staff and employees.

Use of Funds: The initial cost is estimated to be US$ 300 million; the estimated time to start up the project is 6 Months. The Funds will be used for the following:
1. Projects: Environmental Project, and Mine Site Project
2. Equipment: Excavator, Loader, Truck, Pumps, Generator, Tolls, Drill
3. Installations: Warehouses, Lab, Trailers, Office
4. Management: Geologists, Lab Technicians, General Manager, Accountant
5. Employees: Drivers, Machine Operators, Mechanics, Labor, Security

FINANCIAL PROJECTIONS
2011 2012 2013 2014 2015
Revenues $251,250,000 $282,500,000 $303,750,000 $425,000,000 $ 446,250,000
Costs $93,750,000 $120,500,000 $134,000,000 $187,500,000 $202,000,000
Gross Profit $121,500,000 $162,000,000 $169,750,000 $237,500,000 $244,250,000

Investment: The company is seeking a $300MM loan with the collateral backed by the mineral value of the mine. Term is one year with rollover option

Exit Strategy: The company expects to seek a US public listing of the mine within three years

Humanitarian Aspects Of The Project: The Gold Mine site is located 20miles from the City of Sao Dominges, It is a small city with 8,000 residentes, and the city Mayor will donate an area for us to build 200 house for the employes, and also a school (first and second grade) and a small hospital with 70 beds,and We are going to employe 600 people direct, and more 400 indirect ,totaling 1,000 people, All this will bring a lot prosperity to the city, and also for all small Districts around the mine site

Company Expansion: We have more mines to be explored ,like a 4,000 acres Diamond Mine ,and 3,500 acres Copper Mine , ans 2,000acres Emerald Mine, The Research Work on thoses mines will start as soon as we start the Gold Mine Project.

enquiry@capital.com.my

Timor Leste Electricity Lining Project

INSTALLATION AND COMMISIONNING OF ELECTRICITY LINING FOR DILI, REPUBLIC OF TIMOR LESTE. (PROJECT SUM: $8,000,000.00)

PROJECT FUNDING NEEDED : USD$ 1,000,000.00 (ONE MILLION DOLLARS ONLY)

The project above is a GOVERNMENT DIRECT NEGOTIATION project awarded by the Prime Minister Department to provide financial assistance to war veterans.

COMPANY NAME: xxxx LDA

The company have signed agreement with war veterans promising to provide financial assistance. The government will direct award the contract to xxxx Lda ( a 100% owned Timorense Company)

xxxx is seeking project funding of $1,000,000.00 to be deposited into the company bank account. The government requires each lobbying company to show PROOF OF FUND in cash in the company bank account before processing the contract application.

Investor will sign an agreement with xxxx.

xxxx will in return TRANSFER ALL SIGNATORY RIGHTS of the Company Bank account to the Investor as stated in the company resolution.

Investor will deposit $1,000,000.00 CASH into the company account.

xxxx will submit contract application to the Government.

Once the Contract have been awarded and signed, Kabura request that the bank account to be in JOINT SIGNATORY or in any ways investor feel comfortable.

xxxx will utilise the $1,000,000.00 to purchase equipment, material and working capital.

xxxx will submit project claims of USD$ 2,400.000.00 as soon as the first stage of work is completed estimated to be within 2 (TWO) month of work start.

xxxx will pay back USD$1,000,000.00 once receive first payment claim.

xxxx will pay investor USD$1,000,000.00 on the second payment claim as profit for the funding.

Payment can be arrange with an instruction to the bank or government for a direct assignment of payment to a specific second party by the project holder on a specific terms agreed and signed by the project holder with another party with the company resolution done properly.

Government Payment is usually paid between 30-90Days upon the submission of project claim. It can be earlier with a good relationship between the project holder and the respective government department.

LETTER OF CONTRACT ACCEPTANCE WILL BE SIGNED IN THE PRESENCE OF HEAD OF GOVERNMENT.
ESTIMATED PERIOD OF FUNDING AND PAYBACK :
MAXIMUM 6 MONTH
100% PROFIT WITHIN 6 MONTHS
INVESTOR WILL HAVE FULL CONTROL OF BANK ACCOUNT UNTIL PAYBACK.

enquiry@capital.com.my

Colombia Gold Mining Project

xxx Limited (the Company) is the owner of three gold mining licenses in Colombia, South America covering 10,564 hectares and has completed its exploration program and now is embarking on the construction of a gold production facility at the mining site to produce in excess of 100,000 ounces of gold per year. An add-value by-product from this gold mining facility is the confirmed presence of platinum in the target area. Platinum production is forecast to be 12,000 ounces per year, in addition to the gold produced.

The Managing Director of xxx, xxx xxx has been involved in the Colombian business community
for the past decade and has gained an in‐depth understanding of the political and economic
environment there. He has also developed an impressive Colombian business network that has
helped mature this exciting mining project.

The Management of xxx have approved a robust business plan and financial forecasts that requires
investment of US$55,199,880 USD on capital equipment for the development of a substantial gold
production processing plant on its mining concessions in Chocó province of Colombia.

xxx is financing this project with loans and new collateral totalling $55,000,000 US dollars. The
following is the funding scenario.

New Capital $4,000,000
Through loan available from HSBC Bank in Colombia $51,000,000
The loan from HSBC bank in Colombia is secured in the long term against financial guarantees
issued by the USA Ex-Im Bank related to the project and in the short term by leased Standby Letter
of Credit collateralised credit lines with HSBC.

The new capital amount $4,000,000 is required to cover the cost of the leased collateral and related
company expenses. This amount can be either as a loan to the company or as equity in exchange
for shares in xxx

The asset value of the developed project facility will be $44,000,000. In addition to this plant
collateral the certified appraisal of the in-ground assets in the concession area shows an asset value
of $142,995,356. This appraisal is not shown in the forecast balance sheet as is the requirement to
comply with international financial reporting standards and is therefore in addition to the net
assets indicated in the forecasts attached but never the less it is a substantial benefit to the
company.

The business plan shows that the project loan will be fully repaid within 60 months from the
beginning of operations.

The Company has an experienced management team with the necessary skills and experience to
ensure business success. The principal staff and consultants have extensive experience relating to
the core business of the company and the management is very confident of achieving or exceeding
the financial forecasts.

It is intend that xxx will be producing gold and platinum from the project and be cash flow positive
within nine months of implementation of the project loan. This project is very much seen as stage
1 of the development of the concession areas and the goal is to further develop the facilities to
reach a production is excess of 1 million ounces per year within the next 3‐5 years. It is anticipated
to do this by debt funding without any further dilution of shareholding.

We invite you to review our detailed information relating to this project.

enquiry@capital.com.my

Vietnam Ethanol Biofuel Plant, Hoa Binh province

COMPANY BACKGROUND

The certificate of business registration No. xxx dated 06 July 2007 was granted to xxx – Hoa Binh one member limited company by Hoa Binh people’s committee allowing the implementation of investment project on Constructing the xxx manioc starch processing plant in Phong Phu and My Hoa commune, Tan Lac district, Hoa Binh province, with the capacity of 15,000 tons of product/year with the total investment of 32 billion dong.

• Turnover in 2007: VND 14,43,306,000
• Turnover in 2008: VND 22,317,459,410
• Turnover in 2009: VND 79,796,629,800

Major products: Manioc starch
Stable production capacity: 20,000ton/year (designed capacity 30,000ton/year)
Auxiliary product: Dry manioc, manioc starch, manioc dreg and so on.
Material market: Fresh and dry manioc: Mainly of Hoa Binh province and neighboring provinces, the Company directly purchases from farmers and agents, small trader
Output consumption market: Foodstuff, candy, cookies, instant noodle, paper, textile, pharmacy processing companies and so on in Vietnam and mainly exported to China.
Development orientation:

In 2008, the Company expanded its business cooperative manufacture activities and its current members are: xxx manioc starch plant, Phu Tho province and xxx manioc starch plant, Son La province

At first, due to the concentration in investment and lack of market, the xxx starch products were mainly traded through intermediate companies. Since mid 2008, after expanding the market and looking for customers via information channels, becoming member of CAEXPO fair – 2008 in Nam Ninh – China, the Company directly exported its products to the main markets such as China, Taiwan and so on.

Beside manufacturing and consuming the main product of plant – xxx starch of Xxxplant, the Company also sell its products to xxx manioc starch plants and xxx manioc starch plant – Son La and deploys the import of dry manioc product and other agricultural products.

The Company, currently, tends to develop the production of Ethanol bio-fuel to meet the market demand and policy of the State.

BASIS AND PERIOD OF PROJECT FORMATION

xxx – Hoa Binh one member company limited was established in 2006, specializing in produce starch from manioc. The products of Company are mainly for import. Annual productivities rapidly grow, contribute to the development of manioc material in the region and neighboring areas; and contribute to the hunger and poverty eradication for farmers (mostly in rural areas). However, the manioc starch is still semi-product and it can be used to generate many other products with higher value. The import is at times inactive because of the foreign partners.

Meanwhile, at present as well as in the future, the bio-fuel in the place of fossil fuel is a strong trend in Vietnam. The Government has approved the Project on Development of bio-fuel up to 2015, with vision to 2025. xx – Hoa Binh one member limited company recognizes the necessity of investment in the bi0-fuel production from manioc to meet the market demand, bring about the obvious socio-economic efficiency.

The projects of this investment are as follows:
+ Invest in constructing a new plant for producing bio-fuel
+ Expand an existing manioc starch plant to produce more bio-fuel.

The selection of investment project shall be analyzed in the Project.

TARGET OF PROJECT:
Invest in constructing manioc ethanol bio-fuel production plant with the capacity of 20,000,000 liters/year.

MARKET RESEARCH

Introduction of Ethanol production technology:

Fermentation, one of the oldest technology applied by human, to produce various kinds of products, including foodstuff, aromatic spices, beverage, pharmaceutical products and chemicals. However, at present, there are many simpler products which are synthesized from oil and gas at low cost. The future of foodstuff fermentation industry depends on the high efficiency use capacity and special enzymes for synthesizing complex products and the adaptation to different materials as well as different quality of material. thanol is made from various kinds of agricultural products as cereals, fruits and glucose compound.

Energy crisis in 1970 recovered the interest in producing ethanol through fermentation, however, the use of ethanol still depends on productivity and cost of natural ethylene.

Price of sugar and cereals, like that of oil and petroleum, had shot significantly since 1973 and may increase more and more (now reach USD100/barrel).

The glucosic or starch materials can be fermented through various steps to be converted into ethanol. Many different kinds of materials are used to produce ethanol by traditional fermentation method, applied to three kinds of agricultural products: sugarcane, starch and materials containing cellulose. Sugar (from sugarcane, beets, fruit and so on) can be converted into ethanol, Starch (from seeds, bulbs) must, at first, be hydrolyzed into fermentable glucose under the effect of enzymes. Cellulose from timber, agriculture waste containing glucose solution can be converted into glucose by mineral acids. After generating basic glucose, it shall be fermented by enzymes and converted into ethanol.

The more use of bio-fuel shall deduct the greenhouse effect and environmental pollution.

Such bio-fuel as ethanol is one of the best tools to fight against the air pollution from vehicles. Ethanol composed of 35% of oxygen. The additional oxygen added into fuel shall enhance the complex burn period and minimize the toxic exhausted gas.

Petroleum mixed with 10% of ethanol shall reduce the waste which causes greenhouse effect as CO (carbon monoxide) (25-30%), particular matters) (50%) and evaporated organic compounds (7%)

Ethanol may be used in the place of such toxic chemicals as benzene (toxic compound in petroleum). In addition, ethanol is free from sulfur.

The increasing use of bio-diesel shall raise the environmental benefit and the rate of use of ethanol converted from cellulose has increased reasonably in Ontario Canada.

Canadian government foresees that, if about 35% of petroleum containing ethanol is used, the Greenhouse gas shall cut off about 1.8 million ton/year, equivalent to the exhausted gas from more than 400,000 cars.

The American Lung Association of Metropolitan Chicago supposes that the use of ethanol petroleum shall reduce 25% of exhausted gas since 1990.

Ethanol can significantly balance the energy, e.i. generating more energy than the cost to generate itself. This is an useful energy which is generated through effective procedures.

It consumes less than 35,000BTU of energy to generate ethanol from corn, meanwhile, ethanol generates at least 77,000BTU of energy. Thus, the capacity of balancing energy of ethanol is very high.

Researches from various sources show that ethanol can significantly balance the energy. Most recently, The U.S Department of Agriculture) showed that ethanol saves at least 77% of energy.

Although at present in the US, ethanol is mostly produced from corn, they developed new technology to produce ethanol from various sources of energy

Thanks to the tremendous material reserves, the U.S is able to generate a large number of ethanol, enhance the energy safety, economic safety and environmental protection.

Flexible fuel vehicles (FFV) are those vehicles which can use fuel mixture with 85% ethanol. If E85 (mixture with 85% of ethanol, 15% of lead free petroleum) is not available, the vehicle can use directly the lead free petroleum or any kind of fuel with 85% of ethanol.

The giant car manufacturers as Daimler Chrysler, Ford, General Motors, Mazda, Mercury, Isuzu and Mercedes manufactured vehicles which can consume E85. FFV has been produce over the years with latest models are introduced.

E85 fuel is the mixture of 85% ethanol and 15% of lead free petroleum, U.S department of Energy considers this fuel is an alternative energy.

Currently, there are more than 4 million of vehicles used on the roads of the U.S and car manufacturers are producing more and more of this kind of vehicle. To serve this kind of FFV, many petroleum stations have been installed all over the U.S.

When the E85 is not available, FFV can directly consume petroleum and mixture with ethanol at any ratio up to 85%. The important thing is that there is no vehicle which only consumes “ethanol”. All cars can consume E10 without modifying the motor.

The E85 fuel is for FFV, however, some misunderstood that ethanol is the mixture of 85% ethanol and 15% of petroleum.

The ethanol manufacturers are making best effort but it still lacks of about 6 billion Gallons (1 gallon = 3.8 liters)

At present, in the U.S, there are about 97 ethanol producing plants which are run at best capacity, 09 plants are being expanded and 35 plants are being constructed.

According to statistics, up to 2012, the U.S shall consume up to 7.5 billion of gallons of this kind of fuel, the number at present is 5 billion of gallons.

The unusual demand for ethanol makes the manufacturers work at their best effort, sell it at higher price and keep on building new ethanol plants.

The trend of ethanol consumption worldwide

The countries in the worlds are producing and consuming a large number of ethanol and expanding the ethanol production scale. Brazil and Switzerland is using a large number of ethanol for fuel. Some states of Canada encourage the use of ethanol by reducing the price to 45cents/gallon.

India government is encouraging the use of ethanol for vehicle fuel. Currently, some manufacturers in India use redundant alcohol to mix with petroleum or for oxidization matter for petroleum.

According to the tests of Indian Institute of Oil and Gas, some states study the use of about 10% of ethanol mixed with petroleum and 15% of ethanol mixed with diesel oil for vehicles.

In France, ethanol is generated from grapes which are unqualified for wine production.

In Brazil, in 1970s, when the oil price increases, the country set up a program of producing ethanol for vehicles to minimize the imported oil. In Brazil, ethanol is mainly made from sugarcane. Pure ethanol (100% ethanol) is used for about 40% of vehicles in Brazil. The remaining vehicles use the mixture of 24% ethanol and 76% petroleum. Annually, Brazil consumes nearly 4 billion of ethanol gallons. In addition, Brazil also exports ethanol to abroad.

In many years, Switzerland uses ethanol to produce chemicals. For many reasons, since 1980, the consumption of crude oil in Switzerland has been knocked off to a half. Concurrently, the consumption of petroleum and diesel for transportation increased. The amount of exhausted gas reasonably decreased thanks to the installation of converter in exhaust system of vehicles to minimize the amount of CO. CO2, Nitrogen oxide.

Currently, Switzerland considers the mixture of petroleum and ethanol and diesel is the alternative fuel to minimize the air pollution.

Analyzing the necessity of investment

As above analyzed in part of above market and material region, construction investment of bio-fuel production plant supported for policy of replacing gasoline gradually is suitable with enterprises with necessary conditions. xxx Hoa Binh One Member Limited Company is one of enterprises which are producing and doing business in san starch product effectively in our country with increasing output and turnover over years:

Turnover in 2007: 14.4 billion dong
Turnover in 2008: 23.3 billion dong
Turnover in 2009: 79 billion dong

The company has good relationship with material region in provinces of Hoa Binh, Phu Tho, Son La, Tay Nguyen, etc to ensure full material supply for Company. Current starch product is for export. Because it is in half-finished goods form, received efficiency is not effective. Therefore, bio-fuel production investment from san is correct direction with full conditions on material source, production technology, capital source, etc. Together with bio alcohol production chain investment, investment in treatment system of waste water according to environment ensuring requirement shall give double effectiveness from creating energy source (biogas) to reuse for the works as power generation, steam supply and ensure that the impact of the Project for the environment is in allowable limit.

Therefore, it can be defined that the project is constructed on the firm basic:

– According to policy of State on bio-fuel production development
– Meeting the demand of the market
– Having reliable material supply region.

It is defined in “The report of production situation, orientation and development solution of san tree in next time” of Ministry of Agriculture and Rural Development that “-Ensure full supply of materials for starch processing plants and Ethanol production plant to operate until the maximum capacity. Planning of focused material san has scale from hundred to thousands of ha”. San material consumption shall help the agriculture developing firmly and stably because the economic efficiency increases much than only starch production (half-finish goods) as previously. This also helps material region (mainly mountainous region) to develop better in socio-economical field.

ADVANGATES & DIFFICULTIES

Advantages:

Reliable market due to orientation of increasing bio-fuel usage with State encouragement.
Stable san material with development possibility by enlarging cultivation area as well as applying new transplant with high productivity.
xxx Hoa Binh One Member Limited Company is doing business in san starch product, so it has good relationship with material region and experience in doing business.
xxx Hoa Binh One Member Limited Company has skillful staff that is convenient for alcohol production technology approach to operate the alcohol plant effectively.
The project is supported and gives good development conditions by the local
Especially, the Government has favorable policy for projects under field of bio-fuel production.
Difficulties:

Because this project requires large capital source, it needs the help from banks in borrowing capital for the project implementation.
As one of leading enterprise in implementing developing project of bio-fuel of the Government, the enterprise shall face initial difficulties in approaching new technology and market.
However, they are apparent difficulties needed to overcome by enterprise.
CHOOSING INVESTMENT METHOD

1. Expected investment scale

Product orientation
Ethanol bio-fuel product must reach Vietnam standard in national fuel standard system and these products are sold for petrol business unit as Vietnam National petroleum corporation, Military Petroleum Joint Stock Corporation, etc.

Expected capacity scale
On the balance basic between capacity of xxx Hoa Binh One Member Limited Company on field of finance, technical infrastructure, etc. with new developing demand of market, capacity module of equipment chain on the market, xxx Hoa Binh One Member Limited Company decided to choose capacity scale of the project as alcohol production: 600 liter/day – 20 million liter/year.

2. Investment method

With conditions of xxx Hoa Binh One Member Limited Company, there are two investment methods:

A. New construction in ethanol bio-fuel Plant
B. Construction enlargement of ethanol bio-fuel production system on the platform of available san starch production plant, combining with the finishing the technical infrastructure in Phong Phu commune, My Hoa, Tan Lac District, Hoa Binh province.

After analyzing on the real conditions, xxx Hoa Binh One Member Limited Company chooses B method because of following reasons:

– Large platform (10 ha) which is enough for enlargement demand
– Location of the plant is the central of material region
– Infrastructure availability: Transportation, power supply, water drainage.
– Available management staff and technical workers can approach alcohol production technology.
– Investment cost is much smaller than construction in new place.
– Alcohol and san starch production can support each other in production process according to the situation of market and material.

The investment form is defined as: Construction enlargement of ethanol bio-fuel production system on the platform of available san starch production plant, combining with finishing the
technical infrastructure in Phong Phu commune, My Hoa, Tan Lac District, Hoa Binh province.

TOTAL INVESTMENT AND ECONOMIC EFFECTIVENESS

1. Total investment

– Investment basis: According to the Circular No. xxx dated 25th July, 2007 of the Ministry of Civil Construction for guiding the management of investment expenditures on
construction.

– According to the expense account for investment on basic design, investment summary as follow:

Total investment 280,360 million VND
+ Total fixed investment 273,300 million VND
– Equipments: 167,575 million VND
– Build 50,673 million VND
– Project management and other expense: 6,246 million VND
– 5% of back up expense 11,172 million VND
– Interest during the construction time: 22,274 million VND
– Current fixed asset: 15,360 million VND
+ Mobile capital: 7,060 million VND

2. Capital source
– Self-financing: 80,360 million VND, account for 28.66% of the total investment.
– Loan from commercial banks: 200,000 million VND, account for 71.34% of the total investment. Including:
+ Expense for domestic equipments – 167 billion VND
+ Construction expense (except the general layout expense) – 26.2 billion VND
+ Expense for the power – 6.8 billion VND
Interest for loan: 13% year.
Loan time: 8 years

RESULT OF ECONOMIC ANALYSIS

Net value

Net value of the project is calculated on basis of discount of project cash flow through the years with discount interest rate of average 17.02%. Through calculation, NPV of the project
is 23.493 million VND, resulting that the project is feasible.

– In opinion of total investment: NPV = 22.499 million VND
IRR = 18.73%
Time for returning capital: 12.78 years

– In opinion of investor: NPV – 30.976 million VND
IRR = 22.93%
Time for returning capital: 11.72 years

Capital return rate

The IRR is the discount rate with corresponding NPV = 0. In other words, the IRR is the discount rate so that total price of receivables in the future brought about by investment is equal to the investment capital. Project to be invested must have IRR being greater than or equal to normal loan interest rate. Here, IRR of the project is 18.73%, which is higher than long term loan interest rate used in financial solution. In conclusion, the project is feasible, based on the calculated IRR.

Time for investment capital return

Time for investment capital return is determined via net income and deducted gradually from investment capital until the balance is reached. The time until the balance is reached is the time for returning the project capital. For project of producing biological fuel, time for capital return is 12.78 years; investor’s time for returning capital is 11.72 years.

Profitability index

Profitability index (PI) is the difference between net current value of total ingoing cash flow and outgoing cash flow of the project. Through calculation, PI of the project is 1.082, which is greater than 1 and is the basis for concluding the feasibility of the project.

Breakeven point

Breakeven point can be calculated according to output or turnover of the project. Accordingly, we have output breakeven point or turnover breakeven point. The purpose of analyzing the breakeven point is to plan the profit gained on basis of establishing a relationship between expense and income. The lower the breakeven point is, the more efficient the project and the smaller the risk is. For project of producing biological fuel Ethanol, we are searching for an output breakeven point, meaning to determine annual capacity of the production line at which the total turnover of the plant is just enough to cover the expenses (including both direct and indirect expenses); in other words, the income before-tax is equal to 0. Through calculation, we determine that with average capacity of about 45.6%, equivalent to 9,120 thousand liters of final product per year in stable stage of the project, the enterprise will be at the breakeven point through the years.

PROJECT SCHEDULE

– Total time for work completion, from the approval of the project: 18 months
– Total time for construction and installation of equipments: 15 months.

CONCLUSION AND RECOMMENDATIONS

1. Conclusion: With above calculation results, we can determine that this project is feasible. The important point is that the Project is appropriate with strategy of the State, makes contribution to stable development of cassava cultivating and procession of the country.

2. Recommendation: Via analysis of the project, we can see that to implement the State’s strategy on biological fuel successfully, the State should have specific policies on supporting the project investors with regard to planning of developing material regions, product consumption and distribution system, especially in investment capital borrowing.

Provinces, especially Hoa Binh, should create favorable conditions for xxx Hoa Binh Co., Ltd. to establish a neat connection with material regions which keep developing their productivity, area and output to assure stable material supply to the Plant.

Indonesia Coal Trading Company Seeking Bridging Finance

INTRODUCTION

The company is an investment holding company established for the purpose of trading coal and various minerals. At this juncture, it’s associated company in Indonesia; P.T.xxxx Indonesia is principally involved in coal trading activities.

xxxx wishes to increase the volume of its coal trading activities through partnerships with parties that are able to bridge finance the pre-shipment costs associated under a new coal sale and purchase contract. In return, xxxx is willing to give a return and payback to the investor equating to 2 times the money put in by the latter after 1 year.

PROPOSED PROJECT

xxxx is in the midst of finalizing a Coal Sale and Purchase Contract with a buyer from China for the supply of Gross Calorific Value 5800/5600 (“GCV 58-56”) coal on a monthly basis for tenure of one (1) year. The monthly shipment volume to the buyer shall be 60,000 Metric Tons (“MT”) with a tolerance level of surplus/ shortfall of ten percent (± 10%).

Terms of delivery shall be on Cost and Freight as Received (“CFR”) basis at a selling price of USD73.00 per MT and payment terms shall be via 60 Days 100% At Sight Documentary Letter of Credits. It must be noted too that FIRC shall be allowed to make partial shipment of the monthly shipment volume, allowing better cash flow management and control over supply, logistics and shipment arrangements. (Hereby collectively referred to as the “Proposed Project”).

As the Proposed Project does not entail ownership of any heavy machinery, funding requirement could be kept to a minimal. All that is required is the working capital requirements to finance the pre-shipment cost for each and every coal shipment. As the coal shipment shall be on a recurring basis, the amount required to fund the pre-shipment cost is more or less fixed, save for currency exchange fluctuations and cost inflation adjustments.
The estimated cost required to kick start the Proposed Project is USD2,040,000. This represents the cost to ship 30,000 MT of GCV 58-56 coal as partial shipment would be allowed under the Proposed Project. As xxxx does not have any track record with a bank to request for pre-shipment financing, the possibility of securing funding against the assignment of the DLC is remote.

This explains why a minimum funding requirement of USD2,040,000 is required to kick start the Proposed Project. However, once the shipment documents for the first 30,000 MT has been obtained and submitted for negotiation for the release of payment, the bank’s assessment for forfaiting the receivables due from the Purchaser would be different. As such funding for the next shipment of 30,000 MT of GCV 58-56 coal to the Purchaser would be easily addressed.

PROPOSITION TO BUYER

xxxx is prepared to part 20% of its shares for a consideration price of USD2,040,000. As explained above, the funds raised from the sale of those shares shall be utilized to mobilize the Proposed Project.
Return to the Buyer shall be as follows:

Payment of USD60,000 upon completion of every shipment X 24 shipments . USD1,440,000 .
Share buy back at the end of the Proposed Project X 1.3 times . USD2,652,000
Total Gross Return to Buyer USD4,092,000


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