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1. Nature of Copper Business

Copper business like a typical natural resource business can be divided into three main

value chain segments

i. Exploration, Mining and Concentrator

This segment of value chain is a very high risk- high return segment. This

essentially involves locating and exploiting copper resources and selling

the products as concentrates whose price is linked to ME. This is themost profitable of all segments. !eturn on investment is very high.

ii. "melting and !efining #

This segment is the least profitable in the chain. The segment basically

depends upon technology up gradation, production of byproducts and to

some extent on Treatment Charges and !efining Charges it gets at the

time of purchase of concentrates. The working capital re$uirements of

this segment are $uite substantial. !eturn on investment is Medium

iii. %ownstream units #

This is also a very profitable segment in the value chain. The business

involves purchase of cathode and converting this to various products like

!ods, Tubes, "trips, &oils, 'nsulated wires and cables, (inding wires etc.

The return on investment is high

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). "uggested approach #

The company appears to have a aggressive growth strategy to en cash the mineral

resource of Tan*ania. The conse$uent approach would be to concentrate on Mines andConcentrtor segment initially and then move on to "melting and !efining segment. The

early bird approachcould catapult the company to higher levels keeping in view the

continued high prices in the +lobal Market and abundant untapped resources in the country.

right "trategy duly translated into a short, medium and long term plan is essential for

this.. 't is essential to understand the following information and background to do this and

carry the proect forward. 'nitial steps

't would be desirable to make an assessment of mineral resources available. The attached

$uestionnaire may be filled up for the initial feel. ased upon the source, location, $uality

and estimated $uantity available we can decide about the processing facilities, make an

estimation about production volumes, plan for sales and proect a cash flow. The surplus

cash can be reinvested back into the facility.

Typical cost of a "ulphide concentrator is /" 0 1233 to /" 0 4333 per nnual Tonne oc

cathodes. The economic capacity is typically 523,333 Mt

&or oxide ore typically 52 6 Copper, Electro leach7 Electro winning plant cost is /" 0 )333

to /" 0 )233 per nnual Tonne. reak even capacities are much lower7

&or sulphide concentrator a typical 1333 Mt per day costs around /" 0 24 Milion.

Chinese offer much cheaper prices to the extent of 236

8owver. "ome newer technologies like ore sorter may be considered