Presentation1 HDO

Manajem Al Jazeerah Al Arabiah Mining Co .
‫شـركـة مناجـم الجزيرة العربية للتعــدين‬
Presentation
Manajem Al Jazeerah
To
Hindustan DorrOliver
Dated 20th December 2008
Manajem Al Jazeerah Al Arabiah Mining Co . ‫شـركـة مناجـم الجزيرة العربية للتعــدين‬
INTRODUCTION
• Manajem Al Jazeerah Al Arabia was formed in April 2008.
• This company was generated to replace Manjem Al Arabia
• The partners for this company are:
• Sheikh Mohammed Al Assaf (Chairman)
• Eng: Mohammed Al Hatlani (CEO)
• Mr. Nasser Al Agal
• Mr. Abdullah Rehman Al Belhith
Relation Between Manjem Al Jazera and Manajem Al Arabia

1. Al Arabia is a combination of partners of Al Jazerrah, Al Rajhi Group and Al
Subai Group
2. While functioning the understanding between the partners where not as per
contract as Rajhi and Subai groups wanted bulk of the jobs goes to their
individual companies existing with them.
3. This has broken the trust between the partners, resulting in court cases, now
the parties has decided to give all rights to foreign companies on a fixed profit
ratio.
Licenses With Al Arabia

There are about 12 licenses with Al Arabia, the important ones are:
-Khanigiyah Zn-Cu Project (Fully explored Site)
-Um-ud-dammar Cu-Zn Project (partly explored)
-Um ushalahib Gold (partly explored)
-Bir Al Tuluhah Chromite
-Marjan (three sites) poly metal Gold, copper zinc (not explored)
-Mutiah Zinc (not explored)
-Um ul hajj Zinc (not explored)
Gold
Gold Tonnage Gold in
S.# Site Name Location Recoverable Remarks
gm/ton Of Ore Tons
Tons
Khamis D-3.29 761,200 2.5

1 Hamdah 3.376 Fully Explored
Mushait BD-5.68 303,000 1.72
Initial estimates, needs

2 J.Zain Wadi Dawasir 23.8 500,000 11.5 9.200
Exploration
4.7 52,650 0.247

Three sites in close vicinity
3 Ishmas Bisha 3.5 45,560 0.159 4.906
needs explorations
22 207,000 4.5
4 J.Maniya Dawadmi 36 90,000 3.24 2.6 Initial Estimates
5 J.Kawar Dawadmi 10.5 N/A N/A N/A Prospect
N/A
6 J.Mukhyat Bisha 17 N/A N/A Prospect
• Value of Gold which can be recovered from the deposit i.e 80% of the total
• D Dumps on the Site, which does not need mining
• BD Bed Rock Where mining is required
Remarks
Silver Tonnage Silver in Silver Recoverable
S.# Site Name Location
g/ton Of Ore Tons Tons
Initial estimates
1 Samrah Dawadmi 651 278,000 181 145
Needs exploration
Initial estimates
2 Sidriya Dawadmi 750 301,000 225 180 Needs exploration
Copper Tonnage Copper in

S.# Site Name Location Remarks
g/ton Of Ore Tons
1 Samran Buraykah 2% 2,000,000 40,000 Initial Estimates
2 Musainah Madeina >2 % >2,000,00 >40,000 Initial Estimates

Tonnage
S.No Site Name Location Remarks
Of Ore
1 Halaban Al Quwayiyah 5000 Initial estimates
Initial estimates
2 Jabal .Al Himdaniyah Al Hanakiya 1575
3 Wadi Osman Al Ays 630 Initial estimates
4 Bir Tuluah Ha’el 5000 Initial estimates
5 Jabal Tays Al Quwayiyah 3150 Initial estimates
6 Jabal Al Wasq Al Ays 5500 Initial estimates

Metal Tonnage Metal in

S.# Site Name Location Remarks
% Of Ore Tons
Zn 6 %
Completely explored site detail information
1 Khanigiyah Qawayyah 11,000,000 available and are followed in this
Cu 0.45 %
presentation
Zn 3%
Ar 90,000
2 Dawadmi 2,000,000 Partly explored site
Ridaniyah 30,000
Pb 1%
Tonnage
S. Iron Percentage Remarks
Site Name Location Of Ore
No (Grade)
(in Tons)
Magnatite
1 Methgal 175 Kms from Jedda 64% 400,000
2 Masliyah 15KMs from Malha 64% 80,000 Magnatite
Magnatite Silicates
3 Wadi Kamal 45Kms NW to Yanbu 50% 2,000,000
Magnatite
4 Bir Nabtse 67Kms NW to Yanbu 45% 2,000,000
Magnatite
5 Jabal Hamarah 35 Kms from Hinaykiah 50% 2,000,000
Magnatite
6 Bir Al Sayid 40Kms SE from Yanbu 45% 2,000,000
7 J. Rawa Yanbu 45% 30,000,000 Banded Magnatite quartzite
8 Musaynaah Hinaykiah 40% 2,000,000 Magnatite
9 Wadi Hasanah Yanbu NW 62% 1,000,000 Magnatite
10 Kurmah Taif SE 40% 1,000,000 Magnatite

INVESTMENT OPPORTUNITIES WITH Al JAZEERAH

-The sites of Al Jazeerah is Available for joint ventures/investments
- Al Arabia sites are also available, the most important is Khanigiyah, where
much of the explorations works are over and ready for development
-Saudi Arabia Govt will take 20% of income from projects
-There is no income tax or any other taxes for miners
-The power in Saudi Arabia is economical this could give a good advantage
-The slow down in market prices for base and ferrous metals are temporary
due to the recession in the market. Gold prices are still very good
-The processing plants and heavy equipments are cheaper today, this is an
opportunity to develop mines
-Al Jazera is in touch with many investors and mining companies
-Al Jazera needs site/project based partners so that more sites could be
utilized in short time
KHNAIGUIYAH ZINC-COPPER
MINING PROJECT
SUMMARY OF KHNAIGUIYAH ZINC-COPPER MINING PROJECT

Location
1. The Khnaiguiyah deposit is located 170 Km WSW of Ar Riyadh and 30 Km from Al

Quwayiyah via Ar Riyadh-Jeddah highway, from which a two-lane paved road leads to
the village of Khnaiguiyah where the deposit is located.
2. The deposit site falls within topographic sheet no. 4525-34
3. The area has no occupancy problems and in the control of Manjem Al Arabia
Geology & Nature of deposit
1. The deposit compromises with in a area of 3X3 Kms. With 4 Ore-Bodies (1, 2, 3 & 4). The site
is on the edge of cover rocks and are now interpreted as Zinc Copper bearing carbonatized
shear zones hosted by strongly folded Late proterrozoic volcano-sedimentary unit in the
northern part of the Al Amar belt.
2. The mineralization (Zn-Cu-Fe-Mn) is associated with the shear zone and comprises a
carbonatized gangue. (Containing Chlorite, Epidotic & Silica)
Estimated Resources
• The resources are esteemed for 4 Ore-Bodies are as follows, using Polygon method:
Ore Zn Cu Zn equivalent
Body (%) (%) (%) Tonnage (t)
1 4.80 1.01 6.42 194,000

2 3.19 0.83 4.51 6,307,000
3 5.71 0.52 6.55 11,477,000
4 2.30 0.39 2.93 6,828,000
Total 4.11 0.56 5.00 24,806,000
• Out of these 4 Ore-Body's 2 & 3 are most economical with higher grade of the mineral
• The project was studied to a feasibility stage
Studies Performed
•A regional study was performed by BRGM between 1972 to 1975 this study
summarizes the potential of the for the whole region.
•In Early 1992 a pre-feasibility study was carried out by BRGM, for ore body 3 and 2
•In 1997 Madeen took over the license and performed an interim report after
extensive drilling on Ore Body 2 and 3
•In 2007 Manajem Al Arabia developed a Bankable Feasibility study,
•All required literature is available with Manajem Al Arabia
Silent Features Of Feasibility Study

•The study was developed, when the metal prices was on peak, so as the cost of he
equipments.
•Ore body 2 and 3 was planned to be mined, one open cast (OB 2) and one under ground (OB
3)
•A central laboratory for handling all exploration works for all minerals where included
•Mining was planned with a target of 3000 TPD
•Two types of concentrates was planned to be produced on site, Zn Clean concentrate and Zn-
Cu concentrate and the details are given in table below.
1. Plant capacity 3000 TPD ROM
2. Feed Grade (i) Cu : 0 0.98%
(ii) Zn : 0 7.56%
3. Concentrate Grade (i) Copper-zinc Bulk concentrate :18.22% Cu & 16.9%Zn
(ii) Zinc Clean concentrates. : 55.76 % Zn & 01.09% Cu
4. Wt. % yield a) 4.0% for copper - zinc Bulk Concentrate
b) 10.1 for zinc Concentrate
5. Conc. Production b) copper - zinc bulk concentrate : 120 TPD
a) Zinc concentrate : 303 TPD
Note: More tests were recommended to improve Cu-Zn Bulk Concentrate

• A fully established exploration team was included

• Power plant of 12 MW, one operational and a spare was included
• Water pipeline and water reservoir was included
• A green belt development program was included
• Fully furnished accommodations on Site was considered
• A total of more than 700 jobs were allocated to run the project
•The Daily requirement of the project as shown in table below;
S.NO Category Daily Requirement Installed
1 Water Resources 6000 cu.m Pipeline &Reservoir
2 Power 12 MW DG Set generation
3 Water Treatment Plant 250cu.m Proposed
4 Sewage Treatment Plant 250cu.m Proposed
5 Concentrate Transport 420 tons Proposed
Daily Requirement of Power and Water

•Infra structure facilities of the project
S.No. Category Length/Area Remarks

1 Township 7.3 Km ( 15 m width) Between Mines, Rock Dump areas and Processing Plant
Double Roads=5.5Km,
2 Civil Roads Main Access road will be one way standard
Single Roads=7.00Km
3 Waste rock dumps 99,984 Sq m North of Ore body 2
4 Sub grade Mineral Dump 1245 Sq m Industrial selected ore will be stored temporarily
5 Magazine 47738 Sq m NE of Ore body 2 Capacity 1 Month Stock
6 Fuel Station 165. Sq m 40 m Cu m capacity
7 Transport Office Parking for trucks and weighing bridge facilities
8 Administration Building 3821 Sq m Main office facilities
9 Water Reservoir 21123 Sq m Capacity 28.000 Cu m, six days requirement
10 Power Station 10500 12 MW, diesel generators one operational and one spare
11 Water Treatment Plant 4975 Sq m Capacity 250 Cu m/day RO Plant
12 Sewage Treatment Plant 6793 Sq m Capacity 250 Cu m/day
Pilot scale Lab capable to undertake all tasks of head office exploration
13 Central Exploration Laboratory 861
works
14 Haulage road 7.3 Km ( 15 m width) Between Mines, Rock Dump areas and Processing Plant
15 A forestation 251.36 hectares First five years
16 Mine Workshops & Office 1055 Sq m Close to the mines, for ore Body 2 and 3
17 Dispensary 0.032 With an ambulance and single doctor
18 Slurry Pond 447609 Sq Mts Daily deposition is about 2600 tons of slurry.
19 Fence 15 K m All along the site

• Man power requirement of the project
Cost per ton

S.No Department Work force Cost per month SR
SR
1 General Manager office 16 221,354 2.46
2 Administration office 87 358,679 3.99
3 Finance office 9 121,626 1.35
4 Support Facilities 80 458,599 5.10
5 Under ground mine 198 952,561 10.58
6 Open cast mine office 122 590,205 6.56
7 Central Laboratory 37 314,478 3.49
8 Processing Plant Office 131 659,717 7.33
9 Material Management office 15 109,740 1.22
10 Exploration Total 41 243,332 2.70
Total 736 4,075,890 45.29

• Estimated project cost
PARTICULARS AMOUNT (Million SR)
Buildings 101.400
Plant & Machinery 254.700

Tools 0.900
Water Well, Tank and Pipe Lines 42.000
Vehicles 18.700
Furniture & Fixtures 8.100
Computer software, Computers & Electronic Devises 9.900
Development Expenditure 1.500

Pre-operative Expenses 32.500
Contingencies 19.000
Other Fixed Assets 6.300
Working Capital Margin 60.000
TOTAL COST OF THE PROJECT 555.000
CAPEX FOR THE PROJECT

• Estimated Operational cost OPPEX
S.NO Mega Process Break Down SR/ton SR/Day SR/Annum
1 Mining Salaries & Wages 21.2 63,600 23,214,000
Explosives 6.0 18,000 5,472,000
Power 1.2 3,600 1,314,000
Spares 2 6000 2,190,000
Others 1 3000 912,000
2 Ore Processing Salaries & Wages 7.4 22,200 8,103,000
Chemicals & Consumables 30 90,000 27,360,000
Power 3.8 11,400 3,465,600
Water 0.4 1200 364,800
Spare Parts 10 30,000 9,120,000
Others 1 3000 912,000
Concentrate Land Transport 2 6,000 1,824,000
Concentrate Sea Fright 42.8 128,400 39,033,600
3 Central Lab Salaries & Wages 3.2 9,600 30,720
Power 0.7 2,100 638,400
Others 1 3000 912,000
4 Exploration Salaries & Wages 2.5 6000 2,190,000
Spares + Others 0.5 1500 456,000
5 Support Services Salaries & Wages 8.2 24,600 8,979,000
Insurance 1 3000 912,000
Others 1 3,000 912,000
Power 0.3 900 337,500
Water 0.1 300 109,500
Contingencies 1 3,000 912,000
Interest On Working Capital 1.1 3,300 1,204,500
Total 149.4 410,400 140,878,620

PROJECT INCOMES
Project Based Bench Mark Prices
•Zinc 1600 US$/ ton (or) 6,000 Riyals/ ton

•Copper 4500 US$/ ton (or) 16,875 Riyals/ ton
•Gold 12.5 US $/gm (or) 47 Riyals/ gm
•Silver 220 US $/ kg (or) 825 Riyals/ kg
Metal Contents in Concentrates
From Zinc Clean From Bulk Copper- Smelting Total After Smelting
Product Unit
Concentrate Zinc Concentrate Loss Loss
Zinc Ton 169 22 9.55 181.45
Copper Ton - 25 1.25 23.75
Gold GRM 757 324 54.05 1026.95
Silver KG 18.6 3.5 1.10 21.00

Net Sales Values
Sales Value In Million Riyals

Unit
Qty Per Price
Product Unit Year Year Year Year Year Year Year Year Year Year
Day In
Riyals 1 2 3 4 5 6 7 8 9 10
Zinc Ton 181.45 6000 331.0 337.6 344.3 351.2 358.2 365.4 374.5 383.9 393.5 403.3
Copper Ton 23.75 16875 121.8 124.3 126.8 129.3 131.9 134.5 137.2 140.6 144.2 147.8
Gold GRM 1026.95 4.7 14.7 15.0 15.3 15.6 15.9 16.2 16.5 16.9 17.4 17.8
Silver KG 21.00 825 5.3 5.4 5.5 5.6 5.7 5.8 5.9 6.1 6.2 6.4
TOTAL 472.8 482.3 491.9 501.7 511.7 521.9 534.1 547.5 561.3 575.3
The unit sales value in USD is as Bench Mark Prices

Quantity per day is the total quantity of Zinc Clean concentrate and bulk
Copper- Zinc concentrates after deducting loss on account of smelting;
Total number working days is considered to be 304.
2% inflation in prices per annum
Estimated Profit & Loss with 50 % Bank Loan (In Million Riyals):
Year Year Year Year Year Yea Year Yea Yea Year
Particulars
1 2 3 4 5 6 7 8 9 10
A) INCOME 477.8 492.3 506.9 521.7 536.7 551.9 569.1 587.5 606.3 625.3
B) OPERATING COST 309.3 317.7 327.4 337.6 348.7 360.3 372.3 385.2 399.1 413.6
C) OPERATING PROFIT 168.5 174.6 179.5 184.1 188.0 191.6 196.8 202.3 207.2 211.7
D) NON-OPERATING COST 67.5 66.7 64.9 64.0 62.2 61.4 59.5 58.7 56.9 56.0
E) PROFIT BEFORE TAX 101.0 107.9 114.6 120.1 125.8 130.2 137.3 143.6 150.3 155.7
F) TAX @ 20 % 20.2 21.6 22.9 24.0 25.2 26.0 27.5 28.7 30.1 31.1
G) PROFIT AFTER TAX 80.8 86.3 91.7 96.1 100.6 104.2 109.8 114.9 120.2 124.6
H) NON-CASH EXPENSES 49.5 49.5 49.5 49.5 49.5 49.5 49.5 49.5 49.5 49.5
I) CASH FLOWS FROM
OPERATIONS
130.3 135.8 141.2 145.6 150.1 153.7 159.3 164.4 169.7 174.1
Project Cost is Extravagant in the Bankable Feasibility Study
As the feasibility was targeted for bank loan therefore an expensive budget was
shown and in the context of the prices at that time the study was very lucrative: The
main Expensive measures taken was:
A OB 3 was designed underground with expensive equipments and shaft
B Central lab was planned to intake the overall activities of the company
C Two power generation plants where considered
D Rigid dumpers for open cast to achieve better results
E Separate workshops for opencast and underground mines
F Green belt development program which is not a requirement of the ministry
G Manpower of more than 700 was suggested
H Salaries of the staff was too much, as the market was expensive
PROJECT IN THE CONTEST OF PRESENT METAL PRICES
Metal Project Based Bench Mark Prices Current Prices
Zinc 1600 US $ / ton 1100 US $ / ton
Copper 4500 US $ / ton 3500 US $ / ton
Gold 12.5 US $ / gm 30 US $ / gm
Silver 220 US $ / Kg 220 US $ / Kg
Currently the prices for Zinc and Copper are less than the Based bench mark prices
This is mainly due to worldwide recession, and is expected to recover
Factors that can Make the Project Feasible

A Ore body 3, should be mined by open cast mining; This will
avoid purchase of very expensive equipments
B First mine from OB 3 un till the prices appreciate
C Buy ordinary dumpers instead of Rigid dumpers
D Avoid Central lab
E Avoid Big Exploration team
F Rent accommodations instead of building township
G Avoid green bed development program
H Concentrate more on copper rich zones in the beginning
I Reduce manpower
J Avoid extra power station/ Just add two reserve Generators
K Water reservoir capacity should be reduced
L Avoid fencing on mountain ridges
To what extent the cost of the project could be Reduced
The cost projected in KBFS was 550 Million Saudi Riyals, however, it can
be reduced to 300 Million Saudi Riyals if the project is re-assed. The
important factors are already stated above.
The steel prices are low currently this will reduce 25% of the cost on
process plant and machines.
The operational cost will be less expensive as the demand of man power
and chemicals are low.
Smelting charges are low currently as the production has dropped
Renting of smelters are possible currently
Why Joint venture for Khaniguiah Zinc-Copper project is attractive
A - The site is fully explored for OB2 &3, which gives a life of 11years to the project
B - The Area has potential to go further 10 to 15 years as indications of other reserves are available
C - The ores from the near by sites of Redaniyah and UmHajj will add to the reserves
D - The project can be feasible even at current prices of the metals, if it is re assessed with current
prices of equipments and machineries
E - The risk to investment is minimum, however, if the prices appreciate big margin of profits is
expected
F - The present Global Recession is expected to recover in a year, by the time the project comes in
production
G - The investment returns are certain in a quick time with the high volumes of production compared
to the quantum of investment
H - Exploration cost is already invested
What are possible joint ventures with Manajem Al Jazeerah
A - Total investment and profit sharing from the start of the project i.e from
the first day of production to the life of the project. The investment will
remain in the project.
B - Total investment, with recovery of the investment first and than profit
sharing for the rest of the life of the project
C - Joint Venture for limited period
Note:
In any of the conditions stated above the current manpower of Al
Jazeerah will be on the parole of the venture.

Presentation1 HDO

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Presentation1 HDO

Uploaded by

Copyright:

Available Formats

Manajem Al Jazeerah Al Arabiah Mining Co .

‫شـركـة مناجـم الجزيرة العربية للتعــدين‬

Relation Between Manjem Al Jazera and Manajem Al Arabia

Licenses With Al Arabia

Khamis D-3.29 761,200 2.5

Initial estimates, needs

4.7 52,650 0.247

4 J.Maniya Dawadmi 36 90,000 3.24 2.6 Initial Estimates

5 J.Kawar Dawadmi 10.5 N/A N/A N/A Prospect

Copper Tonnage Copper in

1 Samran Buraykah 2% 2,000,000 40,000 Initial Estimates

2 Musainah Madeina >2 % >2,000,00 >40,000 Initial Estimates

1 Halaban Al Quwayiyah 5000 Initial estimates

3 Wadi Osman Al Ays 630 Initial estimates

4 Bir Tuluah Ha’el 5000 Initial estimates

5 Jabal Tays Al Quwayiyah 3150 Initial estimates

6 Jabal Al Wasq Al Ays 5500 Initial estimates

Metal Tonnage Metal in

2 Masliyah 15KMs from Malha 64% 80,000 Magnatite

7 J. Rawa Yanbu 45% 30,000,000 Banded Magnatite quartzite

8 Musaynaah Hinaykiah 40% 2,000,000 Magnatite

9 Wadi Hasanah Yanbu NW 62% 1,000,000 Magnatite

10 Kurmah Taif SE 40% 1,000,000 Magnatite

INVESTMENT OPPORTUNITIES WITH Al JAZEERAH

SUMMARY OF KHNAIGUIYAH ZINC-COPPER MINING PROJECT

1. The Khnaiguiyah deposit is located 170 Km WSW of Ar Riyadh and 30 Km from Al

Geology & Nature of deposit

1 4.80 1.01 6.42 194,000

Silent Features Of Feasibility Study

Note: More tests were recommended to improve Cu-Zn Bulk Concentrate

• A fully established exploration team was included

S.NO Category Daily Requirement Installed

1 Water Resources 6000 cu.m Pipeline &Reservoir

2 Power 12 MW DG Set generation

3 Water Treatment Plant 250cu.m Proposed

4 Sewage Treatment Plant 250cu.m Proposed

5 Concentrate Transport 420 tons Proposed

Daily Requirement of Power and Water

•Infra structure facilities of the project

S.No. Category Length/Area Remarks

3 Waste rock dumps 99,984 Sq m North of Ore body 2

5 Magazine 47738 Sq m NE of Ore body 2 Capacity 1 Month Stock

6 Fuel Station 165. Sq m 40 m Cu m capacity

7 Transport Office Parking for trucks and weighing bridge facilities

8 Administration Building 3821 Sq m Main office facilities

9 Water Reservoir 21123 Sq m Capacity 28.000 Cu m, six days requirement

11 Water Treatment Plant 4975 Sq m Capacity 250 Cu m/day RO Plant

12 Sewage Treatment Plant 6793 Sq m Capacity 250 Cu m/day

15 A forestation 251.36 hectares First five years

17 Dispensary 0.032 With an ambulance and single doctor

19 Fence 15 K m All along the site

• Man power requirement of the project

Cost per ton

1 General Manager office 16 221,354 2.46

2 Administration office 87 358,679 3.99

3 Finance office 9 121,626 1.35

4 Support Facilities 80 458,599 5.10

5 Under ground mine 198 952,561 10.58

6 Open cast mine office 122 590,205 6.56

7 Central Laboratory 37 314,478 3.49

8 Processing Plant Office 131 659,717 7.33

9 Material Management office 15 109,740 1.22

10 Exploration Total 41 243,332 2.70