Investment project The building of the plant for ochreous clay extrusion and mineral pigments production Client: Government of the Penza region Executor: Penza region Development Corporation JSC Penza, 2012 Investment project «The building of the plant for ochreous clay extrusion and mineral pigments production» Item Site type Purpose of the site use End product Deposit name Natural resource Site location Local site situation Buildings on site Owner Contact information Favorable conditions for investment project realization Description Resource The building of the plant for ochreous clay extrusion and mineral pigments production with capacity 4 000 tonnes per year Ferrioxide pigments Vorobjovskoe deposit Ochreous clay Russian Federation, Penza region, Shemisheisky district, 5 km to the North from the village of Vorobjovka 5 km to the North from the village of Vorobjovka, 9 km to the South-West from the village of Shemisheika no Administration of the Shemisheisky district The Head of the administration – Tepzov Anatoly Тел.: (84159) 2-17-80 E-mail: shem_adm@sura.ru Penza Region Development Corporation JSC Tel.: +7(8412) 68 08 37 e-mail: info@krpo.ru web-site: www. krpo.ru Steady demand on pigments in Russia, coused by paint and varnish industry stabilization and substantial use growth of the given raw materials in the process of manufacture of building materials; Closely located to primary product: ochreous clay; Human resources: Number of the able-bodied citezens on 1/1/2010 – 29294, from them 2692 are unemployed; Labor costs minimization possibility: average pay in 2011 in Penza Region was 14 604 RUB, in Shemisheisky District - 10 600 RUB, in the Volga Federal District - 15 753 RUB, in Russia - 21 354 RUB; Support for the project from the Penza Region Government. Transport infrastructure Item Motor transport communication Nearest major cities Railway communication Air communication Water communication Description Nearest federal highway – 1Р 158 (Nizhniy Novgorod – Saransk – Penza - Saratow) 12 км from the site; Access ways: dirt way. Penza-42 km; Moscow -736 km; Samara -491 km; Saratov -189 km; Nizhniy Novgorod -511 km. The Kuybyshevskaya Federal Railway 50 km from the site, nearest station «Kanaevka» railway station 42 km from the site. No branch line on site. Nearest airport - the city of Penza, 45 km away from the site. Nearest river port – the city of Saratow, 255 km away from the site. Security measures No fence, technical security system or video monitoring. Deposit data Item Deposit name Minable natural resources Resource properties (chemical composition) Explored reserves volume Additional information Description Vorobjovskoe deposit of ochreous clay Ochreous clay The strata consist of the quaternary eluvial-dealluvial loamy soil. Lower stratum is presented by eluvium of basement rock, and also by yellow clay, sated in a considerable quantity by fragments of clay and gravel. The stratum is not watered. By results of researches the maintenance of clay fraction changes from 25,74 to 38,44 %, dust from 19,58 to 28,51 %, sandy from 35,0 to 50,09 %. On granulometric structure the raw material is sandy and nonplastic. Chemical composition: SiO2 – 72,76%; Fe2O3 – 7,74%; Al2O3 – 11,56%. Oil absorption – 26,19, holdout 140 g/m2. Total stocks on a deposit on a category A – 76405 m3 (138 thousand tonnes), on category С1 – 161,91 thousand m3 (291 thousand tonnes) Clay lies deposit as lens-shaped deposit 1,2 – 2,0 m. The deposit is extended in the North - East direction, extent of 1 km and width 0,2 – 0,4 km. Capacity of hte stratum is – 0,2 – 1,0 m. The mineral paint prepared from clay, concerns paints P with ochre color (without roasting) and gummite (after roasting). By tests it is established that the clay from the Vorobevsky deposit does not have a high quality as the colorful raw materials, and can be used only in building on irresponsible works, and for hides and sheepskins coloring. Marketing data Item Marketing outlet Market capacity Market specifics Characteristics The federal market of dye staffs and mineral pigments In 2010 the consumption of dyes and mineral pigments by paint and varnish industry has made 98 thousand tons, including import - 51 thousand tonnes, and own manufactured - 47 thousand tonnes. • There are more than 2000 items of paint and varnish materials in Russia; • The structure of paint and varnish industry market: industrial paints and varnishes, building paints and varnishes, paints and varnishes for motor industry; In Central-, Volga – and North-West Federal districts the customers prefer paints and varnishes of “premium” class, in other regions “economical”; Market structure • There are 450-460 manufacturers in the branch of paints and varnishes manufacture. The market of mineral pigments of Russia is controlled by foreign manufacturers. It opens ample opportunities for factory building on manufacture of mineral pigments creation in the Penza region.