GYPSUM Project - Final

Gypsum quarrying Extraction and Processing
Project Profile for Gypsum Quarrying

Extraction and processing
Promoter- aatm international business industrial plc
The project to be implemented In The ANRS East Gojjam

zone, dejen woreda
October, 2020
1 AATM International Business Industrial Plc

Contents
EXCUTIVE SUMMARY ............................................................................................................... 4
1. INTRODUCTION ..................................................................................................................... 5
1.1 promoter profile ................................................................................................................... 5
1.2 project justification .............................................................................................................. 5
1.3 Objective of the project ........................................................................................................ 6
1.4 The socio-economic significance of the project .................................................................. 6
1.5. Locations, Infrastructure and Land ....................................................................................... 8
2. MARKET STUDY AND PLANT CAPACITY ....................................................................... 10
2.1.MARKET STUDY....................................................................................................................... 10
2.1.1. Demand factors for the Gypsum products.................................................................... 10
2.1.2 Past Supply and Present Demand for Cement ............................................................... 12
2.1.3 Projected Demand ......................................................................................................... 13
2.1.4 Market Demand and Supply for Gypsum Board ........................................................... 14
2.1.5 Project Prospects......................................................................................................... 16
2.1.6 Marketing Channel ..................................................................................................... 16
2.2. PROJECT CAPACITY, PROJECT LIFE AND PRODUCTION PROGRAM ................. 17
2.2.1 Assumptions .................................................................................................................. 17
2.2.2 Reserves Estimate for the preliminary........................................................................ 17
2.2.3 Reserve extraction capacity ........................................................................................ 18
2.2.4 Program & Project life ................................................................................................ 18
2.3 PRICING ........................................................................................................................... 19
3. TECHNICAL DESCRIPTION OF THE PROJECT ................................................................ 20
3.1 Project/Products Description ............................................................................................. 20
3.2 Raw Materials and inputs................................................................................................... 20
3.3 Quarry Operation ................................................................................................................. 20
3.4 Production Process and Technology.................................................................................... 21
3.5 Machinery and Equipment Requirement ............................................................................. 23
3.6 Project Design and Engineering ........................................................................................... 23
3.7 Utilities ........................................................................................................................... 24
3.8 Project implementation plan........................................................................................... 24

4. Organization, management and Manpower .............................................................................. 25

4.1 organization and management ............................................................................................. 25
4.2 Man Power ........................................................................................................................... 25
4.3. Organizational structure ..................................................................................................... 25
5. FINANCIAL REQUIREMENT AND ANALYSIS ................................................................ 30
5.1 Total initial Investment Cost ............................................................................................... 30
5.1.1 Fixed Investment ........................................................................................................... 31
5.1.2. Initial Working Capital................................................................................................ 34
5.2. Annual Production Cost at full capacity2 I. Salary Expanse .............................................. 35
5.3 Financial Analysis and statements ....................................................................................... 37
5.3.1 Underling Assumption .................................................................................................. 37
5.3.2 Source of fund ............................................................................................................... 38
5.3.3. Loan repayment schedule ............................................................................................. 38
5.3.4 Deprecation schedule ..................................................................................................... 38
5.3.5 Revenue projection ........................................................................................................ 39
5.3.6 Balance Sheet (Beginning) ............................................................................................ 39
5.3.7 Income Loss Statement .................................................................................................... 40
5.3.8 Cash Flow Statements.................................................................................................... 41
5.3.9 . Profitability.................................................................................................................. 41
5.3.10 Pay-Back Period .......................................................................................................... 41
6. FUTURE DEVELOPMENT .................................................................................................... 42
7. ENVIROMNTAL IMPACT OF THE PROJECT.................................................................................. 42
7.1 Issues & Impacts Mining/Quarrying Project ....................................................................... 42
7.3 Monitoring plan and implementation program .................................................................... 46

EXCUTIVE SUMMARY
1 Project Name Gypsum quarrying extraction and processing plant
2 Project Owner AATM International Business Industrial plc
3 Nationality Ethiopian
4 Project Location The Amhara National Regional state, East Gojjam Zone, Dejen
Woreda
5 Project Composition Quarrying, Extraction and processing of gypsum stone/rock
6 Land required 10 hectare
7 Total Initial Capital Birr 100Million from this amount 25% (Birr 25 million) and
75% (75,000,000) from Bank loan
8 Employment 332 individuals (272 skilled and 60 unskilled)

opportunity
9 Market Share 70% for domestic and 30% for foreign Market or export
10 Benefit of the project Values add in mining sector supply of gypsum stone/rock
for the region/ source of revenue, employment opportunity, benefit for the
Country local community and stimulate the local economy.

1. INTRODUCTION
Ethiopia is a vast country with a total area of about 11.6 million hectares and with a total
population of about 73.9 million. The current dynamic socioeconomic environment, like the one
currently exist in Ethiopia the development of mining and construction sector has a great role to
make the overall economic growth to be persistent.
The government of Ethiopia has a conductive investment polices and guideline that promote the
private sector investment in the economic development through the various investment and
business endeavors. In this regarded the owner of the envisioned gypsum quarrying and
extraction project Two A Brothers Trading plc planned to invest in Amhara regional state, East
Gojjam Zone Dejene Woreda and carried out this pre-project study to check the market technical
and financial feasibility of these project. The result of the study is very sound and promising for
the owner to start the project in this area.
The promoter is very determined to commence the project hence they expect to get the required
support from the regional mines bureau and local government to make the project operational.
1.1 promoter profile

The promoter of the proposed project AATM international business industrial plc has ample
business experience in manufacturing and family business trading currently he needs to extended
his rich experience in gypsum quarrying extraction and processing project.
1.2 project justification

Ethiopia has been passing through dynamic fast and double digit economic growth in all sectors.
As one sector of the economy, the construction and building sectors are also growing in fast rate.
Hence, parallel growth of construction firm and building are vital to keep this growth
persistently.
The booming advancement in the construction (infrastructure) sector necessitate the comparable
speedy increase in complementary sector for raw materials, inputs, accessories of these sector
that finally results the establishment of consistent and strong economic of the nation. As an input
of the sector, Gypsum has widely applicable in cement, construction, and building.

The gypsum industry covers the activities ranging from mining the mineral gypsum to the
production of (end-use) products. Products of the gypsum industry are plaster, plasterboards
(which includes a wide range of standard and specialty products). Gypsum fiberboard and
gypsum blocks which are all used in the building sector (Euro gypsum, 2007 ) gypsum is also an
essential ingredient in cement production, where it is used as a retarding agent. Outside the
construction industry , dried and grinded raw gypsum is used in the making of ceramic molds ,
plaster cove and cornice, surgical and dental casts as a water conditioner for beer-brewing and
sugar- refining as ingredient in flour , bread , ice- cream and pet food , and as an agent in
pharmaceutical products.
The government of Ethiopia has developed a conductive investment policy packages and other
sectorial reforms at federal and regional level to attract a huge private investment for the
wellbeing of the nation and its citizen as a whole. Moreover, it is also implementing the five year
growth and transformation plan II (2015/16-2019/20) That gave a space for infrastructural
development and industrialization.
1.3 Objective of the project

The main of Objective of the project will be generating attainable profit through effectively and
efficient quarrying extraction and process of quality gypsum stone and powder for the market by
selling at competitive price.
 In line with the above objective, the project has the following specific objectives:
 To utilize the available raw material (Gypsum quarry) in Dejen.
 To exploit the gypsum market in the nation
1.4 The socio-economic significance of the project

The envisaged project deemed to contribute to the economic development of the nation in
general and the region in specific with following ways.
a) Value add
In the extraction of gypsum stone and process gypsum powder from the quarry the project will
add value in mining sector.

b) Contribute to the nation's development
By producing and gypsum stone powder the project will satisfy the demand for different for
construction sector through this it will contribute for nation development.
c) Source of revenue
As public policy of any nation the government collects different forms of taxes from different
business income taxes, payroll tax and vat are collected from undertaking business activity,
therefore, the project will serve as source of revenue for both region and nation as whole.
d) General Foreign Exchange
The nation can generate foreign currency when the factory starts export gypsum powder to
neighboring nations in the future.
e) Employment Opportunity
One of the problems that our country faced is unemployment. Therefore, the current objective of
the government is working on tackling the problem of unemployment and fostering the
development process either through creating self-employment or employment in other
organization. Hence this project will hire 332 citizens.
f) Benefit the local community
As a corporate responsibility the company will engage in different development activities on the
surrounding areas (Dejen Woreda). This will better worse the community and contribute for the
development of the nation.
g) Stimulate the Economy
This factory has positive externality in the zone that will encourage the economic movement of
local economy. There will be economic relationship and transactions among different economic
actors.

1.5. Locations, Infrastructure and Land

A. location
The project site will be located in the Amhara National Region State, East Gojjam Zone, Dejen
woreda. Dejen also (transliterated Dajen) is a town in west central Ethiopia. Located in the East
Gojjam Zone of Amhara Region on the edge of the canyon of the Abay. It Project proposal for
gypsum quarrying extraction and processing project has altitude and longitude of 10'N and an
elevation between 2421 and 2490 meters above sea level, it is the administrative center of Dejen
woreda.
Between 1954 and 1967 the town acquired telephone service. Dejen is checkpoint for traffic
crossing regional boundary. Because of the enforced waiting time there are several restaurants
and hotel catering to waiting travelers /I/ the Ethiopian roads authority announced 22 July 2009
that is had paved the 41 kilometer of road between Dejen and Gohatsion in Wara Jarso.
The main justification behind the selection of this location is;
 Strategically located to the central and largest market of the nation
 Relatively advanced development in infrastructure (power, water. Telephone internet

road etc.
 All asphalt road to nearest market outlets
 Availability of huge skilled labour force
 Conductive investment policy and governance
 Availability of huge gypsum mineral deposit
 Near to the promoter side factory (gypsum processing factory in Dejen town)
 Project proposal for gypsum quarrying extraction and processing project plan
B. Land use plan
The project required a total of 10 hectares’ areas of land. This land is planned to use as follow
indicated in table below.

Table 1, premises required and land use
SN Description Land requirement (Hectare)

1 Quarry & production area 7.12
2 Processing plant 0.08
3 Store 0.10
4 Office 0.05
5 Worker shelter and 0.08
cafeteria
6 Parking, road & load 1.82
unloading
7 Green area and buffer 0.75
zone
Total 10.00

2. MARKET STUDY AND PLANT CAPACITY
2.1.MARKETSTUDY
The are many factors that determine the market demand for the construction inputs including
Gypsum in Ethiopia, the majored factors are economic growth of the nation that reflect in
booming in the construction sector and infrastructure development of the government, population
growth are increasing the market demand and supply for those construction material particularly
gypsum. These factors are explained as follows
2.1.1. Demand factors for the Gypsum products

a) Fast economy Growth (Booming in the construction sector)
The Ethiopian economy has been experiencing dynamic and double digit growth that
experienced annual average growth of 11.4 % in past 8 years. According to ministry of finance
and economic development (MOFED), the forecasted economic growth (GDP at constant basic
price) for 2011/2012 is estimated to be 10.4 As per the estimates, annual growth rate of the major
sectors, i.e. agriculture, industry and service were 7.6 % 10.6% and 13.0% respectively and their
shares out of the total GDP were 42%, 13% and 45%, respectively. This continuous high growth
would place Ethiopia among the fast growing countries in the world.
As sectors of the economy, the agriculture and construction sector also grows with double digit
with the average annual growth 10.31% and 12% respectively in the past years. As shown in the
table below the growth of the sectors directly related with the economy as parts of the economy.
Project proposal for gypsum quarrying extraction and processing project
Table 2 Major Economic Indicators
Trends in performance of the economy: growth Rate (%) E.C

Item 2002/0 3 2003/0 4 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10
GDP in 1999/00 -2.1 11.7 12.6 11.5 11.5 11.6 10 10.4

rice
Agriculture -10.5 16.9 13.5 10.9 9.4 7.5 6.4 7.6
Industry 6.5 11.6 9.4 10.2 10.2 10.4,

O/W 0.8 6.6 12.8 10.6 8.3 7.1

Manufacturing
Construction 13.6 19.5 7.5 10.5 10.9 11.3 11.7
Service 6 6.3 12.8 13.3 14.3 17 10.9
O/W: Banking 10.8 19.7 24.2 28.7 15.1 24.9 16.5 13.7
and insurance
Distributive 5.5 6.4 14.7 14.2 16 15.2
service
Other service 6.5 6.1 10.9 12.5 13.1 14.2
Real GDP per -4.6 10.7 9 8 7.5 7.6
capital GDP
Inflation 15.1 8.6 6.1 10.6 15.8 25.3
Source: MOFED & NBE
This fast growth of these sectors resulted from different bodies like government, non
governmental and private activities in Ethiopia growing in the fastest rate moreover the current
agriculture, infrastructure, residential (condominium) and building in paramount level.
In economics, there exist direct relationship between sectorial development and complementary
equipment and martial. As economic since proved the demand for complementary goods (goods
that will consume together like fuel and car) have positive relationship. This means when the
demand for one good increase the corresponding complementary good demand also increase
automatically with different rate depending on the nature of good.
The fasts growth of construction sector created the fast and bulk demand for construction
(building) martial, since Gypsum is among the main complementary inputs for this sector
particularly, the corresponding demands for these products are also increase. Therefore, those
have the highest-rated demand.
b). Population Growth
The rate growth of the urban population increase from year to year. The latest report of united
fund for Population Agency revealed that Ethiopians population has reached 105 million in July
2020, which puts Ethiopia as the second most populous country in Africa. According to the
central statics Authority (CSA), current population growth is estimated to be 2% for the next 20

year. Rural population is growing at about 3.0% while the urban population is growing at about
4.3%. Total population is projected to reach 129 million by 2030. In Ethiopia of the total
population, about 16.0% is estimated to reside in the urban areas. The trend suggests that the size
of urban population likely to continue to grow at a high speed in the future. The share of urban
population will rise from 16.1% in 2020 to about 23% by 2030. Nearly 30 million of the total
129 million will live in cities and towns by 2030. As a result from big population growth and
urbanization demand for construction inputs will be increase.
2.1.2 Past Supply and Present Demand for Cement
The consumption and growth of cement (both domestic production and import) in Ethiopia are
dynamic in nature. The following time series data for 13th year show as the follows.
Since gypsum is one of the required input for cement industry the demined and supply for cement
show as a direct demanded and supply for gypsum.
Table 3; Cement Consumption in Ethiopia (million tons) Source: - Access capital Research
Estimate based on public and import data
The apparent consumption data of cement, comprising of domestic production and imports
(2004-2005 E.C).
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Consumption 0.67 0.77 0.75 0.74 0.82 0.82 0.97 1.04 1.17 1.81 2.00 2.50 3.2
estimate
Growth rate ... 14.9 -2.6 1.3 10.8 0.0 18.3 7.2 12.5 54.7 10.5 25.0 27.0
(%)
Table 4; Apparent Consumption of (Tones)
Year E.C Production Import Total

2000 815,632 224 815,856
2001 819,632 189 819,236
2002 919,169 388 919,557
2003 890,181 518 890,699
2004 1,415,187 596 1,415,783
2005 1,252,659 1,447 1,254,106

Based on the table above, Over the 6 years’ period covered by the data set 2000-2006), local
production was growing at an annual average growth rate of 17.25% following increase
construction activities all over the country demanded for cement is currently soaring at an
increasing rate. It is also easy to infer from the data in table that the factories are currently
working in their capacity. Hence, unless new capacity is created in time a sever shortage, all of
supply is going to metalize particular and the country development in general.
2.1.3 Projected Demand

The future demand for cement, like many other construction materials is a function of a number
of interrelated variables. These variables that are essentially in determining the magnitude and
trend of demand for cement are:
 The overall economic development level and growth trend of the country.
 The pattern and trend of the construction industry.
 Expected technological changes that affect the structure of the construction

industry.
 Government policies and regulation that have impact on the future level and
trend of construction activities, and
 Size of population and growth rate.
Considering d the growth trend in supply observed from the historical data, future demand is
forecasted to grow at a rate of 20%, annually. Accordingly, projected demand for cement ranges
is as follows.

Table 5- projected demand of Cement
Year2012 Projected Demand Existing capacity (Million Demand (million

(E.c) (Million Tones) Tones) Tones)
2013 2.6 “” 0.6
2014 3.12 “” 1.12
2015 3.74 “” 1.74
2016 4.5 “” 2.5
2017 5.4 “” 3.4
2018 6.5 “” 4.5
2019 7.8 “” 5.8
2020 9.4 “” 7.4 .
2021 11.2 “” 9.2
2022 13.5 “” 11.5
2023 16.2 “” 14.2
2.1.4 Market Demand and Supply for Gypsum Board

Gypsum board is widely used as construction materials mainly for interior finishing like
partition, walls, ceiling and acoustic board. Therefore, the demand for the product is influenced
by the dynamism in the real estate sub sector mainly of residential and commercial building.
Nowadays, the use of gypsum board partition for commercial building has become customary.
Furthermore, high end houses restaurant, pastries and the like use gypsum board for ceiling and
decorations.
The local demand gypsum board was met only through import in the past however, recently a
gypsum board manufacturing plant named Gh industrial Pic has become operational. However
there is no available data which indicates the production level unsatisfied demand i.e the demand
which is met through import is considered. Accordingly, the quantity of gypsum board imported
during the period 2002-2011 E.C is given in table below.

Table 6- Import of Gypsum Board (in M2)
Year (E.C) import

2002 28,247
2003 11,901
2004 25,275
2005 54,998
2006 101,379
2007 236,63
2008 105,045
2009 281,953
2010 217,294
2011 380,323
Source: - Ethiopian Revenue & customs Authority
As we have been observed from Table 6, import of gypsum board exhibits a substantial growth
especially during the recent six years I.e. 2006-2011. The average annual import, which was
30,105 M2 during the period 2002-2005, has increased by more than seven fold to an average of
220,438 M2 during the period 2006-20011.
For estimating the present unsatisfied demand for gypsum board, a growth rate 13% which is
equivalent to growth rate contribution of a construction sector to GDP during the period 2001-
2010 is considered.
Accordingly, taking the 2011 level of import as a base applying a growth rate 13% the present
(2012) unsatisfied demand for gypsum board is estimate at 429,765m2.
Demand Projection
The demand for gypsum board is directly related with the growth in the construction sector in
general and the housing construction sub sector in particular which in turn depends on the overall
economic development of the country.
The growth of the construction sector to the GDP during the period 2001-2010 have been

growing at annual average growth rate of 13 percent which is above the average annual growth
rate of real GDP during the period under consideration (11.4), indicating a rise in the share of the
construction sector within the overall economy.
According to the GTP, during the period 2010/11-2014/15 the real GDP of the country ( at a base
case scenario) is expected to grow at an average annual growth rate of 11.2% Moreover, during
the same period the annual average planned targets of growth for the construction sector is 20%.
By considering the above factors, the demand for gypsum board is conservatively assumed to
grow at a rate of 10%. Consequently, unsatisfied projected demand is presented in the table
below.
Table 7, projected to unsatisfied Demand (m2)
Year (E.C) Projected Demand

2013 472,741
2014 520,015
2015 572,017
2016 629,219
2017 692,140
2018 761,354
2019 837,490
2020 921,239
2021 1,013,363
2022 1,114,699
2.1.5 Project Prospects

From the above market demand and supply analysis for the envision project product there exist
very huge market in Ethiopia. Hence, the project will be successful by entering in to this market.
2.1.6 Marketing Channel

In the construction industry, marketing is considered to be of significant importance. In very
Gypsum quarrying and extraction product marketing parameters are very limited and usually in
some degree with the construction sector. Some of the marketing promotion activities which
should duly be rendered are given below:

 Connection development with the building material supplier including gypsum

processing company and factory, well known builders and contractors.
 Update information on civil and construction work initiated by local, provincial and
central government.
 Draw linkages with material suppliers to the housing industry at level.
 Establish contacts with local civil engineering firms, individual and professionals.
2.2. PROJECT CAPACITY, PROJECT LIFE AND PRODUCTION PROGRAM
2.2.1 Assumptions
 Total working day/hour =8hr
 Number of shift per day =1
 Number of working days per year =312
2.2.2 Reserves Estimate for the preliminary

For the preliminary estimation of the reserve, minor geological mapping was done in the area.
The mineral and average thickness of the deposited is not common to all area under concession is
taken and calculated.
The average mine able depth measure to be 15 meter
The total area of the deposit under discussion is about 7.12 hectares (which is equivalent to
71,200 m2)
Effects of inflorescent factor like weathering, intercalation of unwanted materials and

nonresistant inclusion in the martial, etc are assumed to lower its actual exploitable volume by
about 10%. Therefore, the total mine able reserve of the deposit at the proposed project site is
estimated as follow.
The Total Reserve Volume = (71,200m2 xl 5m) = 1,068,000m3

When we convert this volume to mass, we use a mathematical formula;
Mass = Density x Volume, where Density is assumed to be 1.2
Mass = 1.2x 1,068,000= 1,281,600 tons
There for the total reserve will be 1,281,600 tones.
2.2.3 Reserve extraction capacity
2.2.4 Program & Project life

The project designed to 500 tones extraction of gypsum stone per day and 156,000 tones of
Gypsum stone per year in one shift 8 hours per and 312 working days with days with total
reserve amount 1,281,600 tones project will have; Mine life (Project Life) - 1,281,600 = 8.22
years this implies that 156,000
Mine life - 10 Years
The project is expected to carry out its activities for about 8 years approximately. Out of the total
production 65% (101,400.00 tone) for gypsum stone to be and 35% (54,600.00 tons) for
processing gypsum power. The first three years it is estimated to produce at 60% 80% and 100%.
The quarrying project will be reached full capacity at the third year of operation. Hence the
annual production and program for the table below;
Project proposal for gypsum quarrying extraction and processing project
Table 8, Capacity and production Program of the project
Description Year
1 2 3.10
Capacity utilization (%) 60 80 100
Gypsum stone in ton 81,840,00 81,120.00 101,400.00
Gypsum powder in ton 32,760,00 43,680,00 54,600.00
Total 93,600.00 124,800.00 156,000.00

2.3 PRICING
It would be important to examine the possible level of price based on the competitor's action. In this
connection, the existing average prices of similar company were assessed for the benefit of
comparison.
Based on the existing average price for gypsum stone in the market, Table 9, Price of Project
Product UOM Price of the company in birr
Gypsum Stone Ton 185
Gypsum powder Ton 1750

3. TECHNICAL DESCRIPTION OF THE PROJECT
3.1 Project/Products Description

The mineral gypsum is calcium sulphate dihyrate (CaS04. 2H20) from a chemical point of view.
Gypsum is also called plaster. The gypsum mine is the main raw material to produce gypsum
binder and gypsum building products and the reader of Portland cement. After clacking under
600-800°C and adding little catalyst (such as lime), we can levigate the whole mixture and get
anhydrite binder which is also called Kim binder. After calcined gypsum, we can use building
gypsum products. Plaster of parries has better wear resistance and water resistance. In civil
engineering, the gypsum mine can be used in interior plastering, painting architecture and the
increase of gypsum requirement, market demand to construction gypsum and gypsum building
products has promoted the rapid development of gypsum mining.
The envisioned project will quarry and extract Gypsum rock/stone and process gypsum powder
for different propose.
3.2 Raw Materials and inputs

The main raw material for the project is Gypsum quarry. The main source of the raw material is
gypsum quarry exist in the project site. The auxiliary raw material for gypsum powder is pp. bag
for packaging.
3.3 Quarry Operation

In nature, Gypsum and Anhydrite occur as beds or nodular masses up to a few meters thick.
Gypsum is mostly formed by the hydration of Anhydrite. The depth of hydration can range from
the surface of the deposit down to three hundred meters.
Depending on temperature and pressure, topography and the structure of the deposit Anhydrite is
often mined in conjunction with gypsum, but is comparatively limited in its technical
applications. The content of calcium sulphate in a sedimentary rock varies from 70% to 100%,
the rest being clay and limestone
Gypsum is extracted from open-cast mines or underground mines using room and pillars mining
methods.

The quarry process begins by first removing the earth over the deposit. Then gypsum ore is
drilled and blasted loose to be carried to the processing plant.
Transported to Processing Plant
Upon removal, Truck transport gypsum to the processing plant. The plant produces unformed
gypsum material for product manufactures or produces the end -product on-site .Trucks dump
load of raw gypsum rock at the plant in piles until the plant is ready for them.
3.4 Production Process and Technology

The technology production process to produce good quality of gypsum powder involves some
few steps and it ranges from raw martial preparation, crushing, stockpiling screening, grinding
and temporary storage of land powder, kettle calciner, hot pitting and production of silos and
packing process. This general technology process to produce finished gypsum products is briefly
describe below The production of gypsum-powder (stucco) from the locally and naturally
occurring gypsum ore nearly the through evaporating the molecularly bind water to the level of
only 25% at the prescribed temperature and keeping the fines at its best mesh size so that it will
have excellent working properties in the building industries. Gypsum ore mined at the ore site
size reduced and transported to the factory at chancho plant by dump truck where it gets further
crushed, washed, pulverized, calcined and packed each day at 50 ton/day capacity. The machine
is used to grind gypsum, barite limestone, etc whose hardness is below 9.3 mohs and moisture is
less than 6% in the trades of construction materials. The fineness size is adjustable in the range
of 60-1250 mesh. It is possible to produce 10-60 mesh powder through assembling special
device in the machine.
In the main frame, a 1000-1500 kg high pressure spring is fixed to the roller suspender. After the
grinder is put into effect, the roller will go around the main shaft, and rolls closely against the
grinding ring accompanied by high pressure.
When the gypsum is loaded into the grinding cavity, it is shoveled in to the space between the
roller and the ring fir grinding. The grinded powder goes in to classifier along with the
circulation wind of the blower and the standard fineness powder is guided to the cyclone
collector as finished and larger size stuff falls back to the grinder for regrinding. The circulation

wind returns to the blower to repeat the above process and after wind enters in to bag dust
cleaner for purification. When there is abrasion between roller and ring, it is recommended to
adjust the length of the spring to maintain the constant pressure between the roller and the ring
hence to be able to get a stable output and fineness. The principle unit operation-taking place in a
gypsum production is calculations, which is carried out in kilns of appropriate design depending
upon the raw materials characteristic. To-data two types of kils are known. These are vertical
shift kilns and horizontal rotary kins. For the envisaged plant a vertical rotary kilns. For the
envisaged plant a vertical rotary kilns are found to be appropriate for the calcinations process for
reason of efficient land away from the present plant site) is first crushed and screened to produce
the decomposition reaction takes place at a high temperature. The gypsum thus formed is cooled
in drum cooler and then packed for storage or delivery. Gypsum powder which is commercially
used in the construction industry and for other purpose is CaS04 and is manufacture by crushing
and removing the moisture from the Gypsum stone CaS04-2(H20 ).
Gypsum stones (raw martial)
Crushing Using Jaw crusher
Small Gypsum stone
Pulverizing using Pulverixer Gypsum fine power
Removing Moisture Using calcinatory
Gypsum powder (Finished product)

3.5 Machinery and Equipment Requirement

The list of machines, equipment and vehicle are shown below in the table below for each
production line; the corresponding costs are indicated in chapter 6.
 Crawler bull dozer 230 hp
 Wheel Loader 35 tons (with operational & maintenance manuals and part books) 350-400
Hp
 Excavator 350 Hp (with operational & maintenance manuals and part books) 350-400 Hp
 Hydraulic Jacking plant with Jacking capacity of 500 tons
 Stitch drills with one Jacks hammer designed for 20 feet's drilling equipped with 3 meters
long guide bar
 Manual Jack Hammer
 Full gypsum processing machine
 Generator 250 KVA prime power
 Other miscellaneous equipment
 Sino Dump truck
 Minibus
 Toyota pick-up
 Office equipment's
3.6 Project Design and Engineering

The proposed project comprises stock of different components to be executed at different phases
of the project life. These activities include quarrying land development, Design and construction
of building importing machineries and import of products vehicle.

3.7 Utilities
A number of utilities would be put in order to ensure smooth functioning of the project. These
utilities include:
A. Water supply
B. Supplementary Electricity supply
C. Paved Road Transportation,
D. Drainage Facility
E. Fuel & lubricant
3.8 Project implementation plan

The project's implementation is expected to take 24 months. The Major activity includes Bank
loan processing, construction of the building, cleaning the area around the building, procurement
of equipment and start rendering services. The time schedule for the above mentioned major
activities is presented below.
Table 1o- Project - implementation schedule
SN Activities Date
1 Land Approval . October , 2020

2 Bank loan processing Jan- May, 2021
3 Site Development June- Sep, 2021
4 Building and construction work Sep,2020- Oct,2020
5 Purchasing of machines and equipments Nov- Dec 2021
6 Production execution Jan, 2022

4. Organization, management and Manpower
4.1 organization and management

The organization structure should be in a way that the company able to achieve its objective as
well as the satisfaction of requirement.
4.2 Man Power

The total manpower required for the project will be 332 individual (272 skilled and 60
unskilled.) The manpower list and the corresponding labor cost are show in part 6 on the
financial part.
4.3. Organizational structure

The organizational structure of the project is designed by including all the necessary personal
under the right division. At the top of the organizational structure, there will be manager with the
responsibility of supervising the overall activity of the plant. Depending up on the nature of the
center and the amount of work to be performed; there exist auxiliary units under the general
manager.
Employees under each unit will be supervised by the department head that is accountable for the
general manager. General Manager appointed by the owners.
Owner
Executive secretary General Manager
Quarry, Extraction & Admin & Finance Department Marketing Department

processing
Fig: Organization structure


Hence the following section deals with the duties and responsibility of some departments
a) General Manager
Duties and responsibility
 She/he will plan organize, direct and control the overall activities of the project
 She/he will devise policies and strategies that will enable the plant to be profitable.
 She/he will incorporate modern technological innovation that will facilitate the service
delivery of the project center and increase customer satisfaction.
 He/he will plan, organize, direct and control the human and non-human resource of the
project so as to achieve the short and long run objectives of the organization.
b) The quarry and Extraction Department
Duties and responsibility:
It is the core department of the project centre and has the following responsibility
 Ready and prepared the quarry for Gypsum stone/rock extraction
 Use modern manufacture , processing and technology that will enhance the quality of the
Gypsum stone/rock
 Extraction quality of the Gypsum rock/ stone that will enable the centre component both
in the domestic and international market.
 Use appropriate technology to manage its product
 Providing gypsum stone crushing service for external customers
 Control on the quarry nature quality of the gypsum stone/rock and also the overall
extraction process.
 Produce products in least cost so that the profitability of the center is guaranteed

 Moreover, control over quality of the final product (Gypsum stone/rock)
c). Administration and finance department
Duties and responsibilities: -
 Will plan, organize direct and control the financial transaction of the plant by using the
entire necessary document.
 Will develop sound financial control system by developing modern financial control
systems.
 Will prepare the annual financial statements and prepare condescend reports for the
general manager, owner and other concerned government body.
 Will control the human and non human resource of the plant, which include: effective
handing of the different inventories of the machinery , equipment raw martial, finshined
products, and devise strategies of controlling against fraud and devise strategies of
controlling against fraud and damage.
 Manage and execute the company national and international procurement produce
 Administer and control the company logistic resource.
 Project proposal for gypsum quarrying extraction and processing project
 Effectively administer the company procurement process domestically as well as

internationally.
 Manage the public relation of the quarry project with external parties/stakeholders
 Provide and manage general supportive service to the plant
d) Commercial Department
Duties and responsibilities: -
 will handle the overall marketing activities of the organization which include planning,
organizing, directing and controlling
 Provide cost estimate in preparation for securing.

 gather information on new product design, profile
 approval of new products profiles & market plan analysis
 plan and execute sales
 will develop effective customer handling strategies
 will design and implement effective advertisement and promotion schemes
 will develop the marketing strategies for future project center development
 conduct both foreign and domestic market research for expanding the sales of the
company

5. FINANCIAL REQUIREMENT AND ANALYSIS
5.1 Total initial Investment Cost

The total amount of money that is required to establish the envisaged project is estimated to be
birr 100 Million.
Table 11, Total initial investment capital
SN Description Cost in birr

1 Land , Building & Construction 15,938,308.00
2 Machines & Equipments 53,739,950.00
3 Vehicles 15,422,500.00
4 Office Equipment 401,980.00
Total fixed investment cost 85,502,738.00
5 Pre service expense 427,850.00
6 Initial working capital 9,211,956.00
Total 95,142,544.00
Contingency 4,857,456.00
Total initial investment capital 100,000,000.00

5.1.1 Fixed Investment
A. Land, Building& construction
SN Description UOM Land Unit cost in Br. Total cost in Br

requirement
1 Quarry & production area Hectare 7.12 99,500.00 708,440.00
development
2 Processing plant M2 800.00 2,487.00 1,990,000.00
3 Store M2 1,000.00 2,388.00 2,388,000.00
4 Office M2 500.00 2,985.00 1,492,500.00
5 Worker shelter and M2 800.00 3,582.00 2,865,600.00
cafeteria
6 Parking, road & loading Hectare 1.82 475,212.00 434,616,00
unloading
7 Green Area and buffer Hectare 0.75 139,300.00 ' 104,475.00
8 Fence
zone 2,985,000.00
9 Electric line installation 1,691,500.00
10 Water line installation 681,177.00
11 Supervision 597,000.00
12 Land acquisition 2,786,000.00
Total 15,938,308.00

B. machineries And Equipment
S Description Quantity Unit price in Br. Total price in Br Remark
N
1 Crawler bull dozer 230 hp 1 7,363,000.00 7,363,000.00
2 Wheel loader 35 tons (with 2 2,388,000.00 2,388,000.00 -
operational &maintenance manuals
3 Excavator
and parts books)350 hp hp (with 1
350 to 400 9,154,000.00 9,154,000.00 Duty Free
operational& maintenance manuals
4 Hydraulic jacking350
and parts books) plant withhpjacking 1
to 400 1,253,000.00 1,253,000.00 Duty Free
capacity of 500 tones
5 Stitch drill with one jack hammer 1 12,935,000.00 12,935,000.00 Duty Free
design for 20 feet drilling equipment
6 Manual Hammer
with 3 meter long guide bar 25 248,750.00 Duty Free
Full line gypsum powder processing 1 9,950.00 16,517,000.00 Duty Free
plant
7 Generator 250 KVA prime power 1 995,000.00 995,000.00 Duty Free
8 Other miscellaneous equipment's 500,000m. 497,500.00 Duty Free
Total 53,739,950.00

C. vehicles
SN Description Qty Unit price in Total price in remark

br. br.
1 Sino dump truck 4 2,388,000.00 9,552,000.00 Duty free
2 Minibus 1 1,194,000.00 1,194,000.00 Duty free
3 Worker service bus 1 2,985,000.00 2,985,000.00 Duty free
4 Toyota pick-ups 1 1,691,500 1,691,500 Duty free
Total 7 15,422,500.00
D. Office Equipment
Tot description Qty Unit cost in Br Total cost in

al Br
1 Managerial tables with chair 3 15,920.00 47,760.00
2 Secretarial chairs with table 1 8,955.00 8,955.00
3 Office chairs with tables 10 6,965.00 69,650.00

4 Computer with its accessories 3 23,000.00 71,640.00
5 Printer 3 9,950.00 29,850.00
6 Shelf 3 16,915.00 50,745.00
7 Telephone and fax machine 2 2,985.00 5,970.00
8 Filing cabinets 4 6,965.00 27,860.00
9 Curtain and carpet LS 3,500.00 59,700.00
10 Other miscellaneous expenses LS 29,850.00

Total - 401,980.00

5.1.2. Initial Working Capital

The Initial working Capital is estimated to be Birr 9,211,956.00
5.1.3. Pre-serves Expense
SN Cost of Items Unit Qty Unite cost in Total Cost in Birr

Br
1 Business plan set 1 39,800 39,800
2 Environmental impact set 1 49,750 49,750

Assessment
3 Design and BOQ set 1 99,500 99,000
4 License and other processing LS 1,000 9,950
5 Billboards set 2 39,800 39,800
6 Developing administrative, set 1 159,200 159,200

logistics & financial formats
Total - - - 427,850.00

5.2. Annual Production Cost at full capacity
5.2 I. Salary Expanse

SN Description no Qualification Monthly salary in Annual
Permanent worker Br. salary in Br.

1 General manager 1 BSC in geology 15,000,.00 180,000.00
2 Production supervisor 2 BSC in chemistry 5,500.00 132,000.00
3 Chemist & quality control 3 BSC in chemistry 3,000.00 108,000.00
4 Skilled operator 102 10+2 in production 1,400.00 1,713,600.00
5 Helper 80 Basic 1,000.00 1,056,000.00
6 Mechanic 2 management
10+2 in general mechanic 2,300.00 55,200.00
7 Force man 1 Diploma in production 3,000.00 36,000.00
8 Secretary 1 technology
Diploma in secretarial science 1,700.000 20,400.00
9 Technical/mechanic 1 10+2 in general mechanic 2,800.00 33,600.00
10 Laborer 40 Unskilled 900.00 432,000.00
11 Marketing head 1 BA in marketing 10 5,500.00 66,000.00
12 Purchaser 1 completed
10+2 in Pur. +certification
& supplies 1,2,00.00 18,000.00
management
management
13 Sales person 4 Diploma in sales management 5,000.00 96,000.00
14 Admin & finance head 1 BA in Accounting /mgt 3,500.00 60,000.00
15 Accountant 1 BA in Accounting 2,000.00 42,000.00
16 Cashier 2 10+2 in book keeping 2,000.00 48,000.00
17 Dozer operator 2 10 completed +certification 2,000.00 48,000.00
18 Loader operator 2 10 completed +4 grade 1,800.00 86,400.00
19 Excavator operator 2 10 completed +4 grade 1,000.00 48,000.00
20 Truck driver 4 licensed
Basic 1,300.00 15,600.00
21 Assistant truck driver 4 licensed
10 completed +3 grade 1,350.00 32,400.00
.'2 Pickup driver 1 10 completed +3 grade 1,350.00 16,200.00
23 Minibus & service bus 2 licensed
10+2 in logistic management 750.00 27,000.00
licensed
driver
24 Store keeper 1 Unskilled 1,100.00 79,200.00
25 Cleaner 3 Basics 850,00 20,400.00
26 Guards/security 6 unskilled 33,630.00 4,554,000.00
27 Gardner 2 910,800.00
Total 272
Benefit (20% of basic 900 648,000.00
II salary
Temporary worker 6,112,800.00
1 Daily laborer 60
Grand total 332

5.2.2. Operational Expanse
SN Description Annual cost br Assumption Used
1 Property insurance 429,662.00 1% of fixed investment of

cost
2 Audit & Legal Fee 60,000.00 Br. 5000 per month
3 Worker cloth 51,000.00 80 pes by Br.500
4 Protective and safety equipments 40,000.00 273,000*br.7

5 Packaging PP 50 peg 1,911,000.00 Br. 2500 per month
6 Telephone, fax, and postal 30,000.00 Br. 3500 per month
7 Cleaning goods supplies 42,000.00 1.5% of the fixed cost
8 Repair maintenance &spare parts 644,493.00 Lump sum

9 Advertisement 150,000.00 s
10 Stationery and other office supplies 15,600.00
11 Electricity 255,000.00 Per annum

12 Medical supply 7,000.00 Brl.5*
13 Environmental protection 200,000.00
14 Water 5,250.00
15 Fuel 4,255,020.00
16 Oil and lubricant 425,502,00.
17 Miscellaneous expanse 60,000.00
Total 8,581,527.00

5.3 Financial Analysis and statements
5.3.1 Underling Assumption

The financial analysis of the envisioned quarry project is based on the data provide the preceding
section and the following assumption.
A. Construction and Finance
Construction period 12 months
Source of finance 25% equality 75 loans
Bank interest rate 10%
Royalty payment 2%
Tax holiday 2 years
Operational costs increase by 3% after year 1 Sale revenue increase by 5 after year 1 Salary and
wages increase by 2 % after year 1
B. Depreciation
Building 5%
Machinery 10%
Office furniture 10%

Vehicles 20%
C. Working capital
Accounting receivable 30 days

Raw martial local 30 days
Work in progress 5 days
Finished products 30 days
Cash in hand 5 days
Accounting 30 days

5.3.2 Source of fund

Sn Description % share Amount birr
1 Owner share 25 25,000,000.00
2 Bank Loan 75 75,000,000.00
100 100,000,000.00
5.3.3. Loan repayment schedule

Year Principl payment Intrest Total Remaining
(8.5%) annual in balance
0 0 0 br 0 37650630
1 3765063 3200304 6965367 33885567
2 3765063 2880273 6645336 30120504
3 3765063 2560243 6325306 26355441
4 3765063 2240212 6005276 22590378
5 3765063 1920182 5685245 18825315
6 3765063 1882532 5647595 15060252
7 3765063 1506025 5271088 11295189
8 3765063 1129519 4894582 7530126
9 3765063 753013 4518076 3765063
10 3765063 376506 4141569 0
5.3.4 Deprecation schedule

SN. Description Original value in Deprecation rate Deprecation per
Birr in% year
1 Construction and civil work 8,009,200.00 5 400,460.00
2 Machines & Equipments 27,005,000.00 10 2,700,500.00

3 Vehicles 7,750,000 20 1,550,000.00
4 Office Equipment 202,000 10 20,200.00
Total 42,966,200 4,671,160.00

5.3.5 Revenue projection

Based on the price and capacity program of the factory indicated in previous chapter, the revenue
of the quarry projected as indicated in the below chapter
Description Year l Year 2 Year 3 Year 4 Year 5
Gypsum 11,255,400.0 0 15,757,560.0 0 20,681,797.50 21,715,887.38 22,801,681.74

stone
Gypsum 57,330,000.0 0, 76,440,000.0 0 95,550,000.00 100,327,500.0 0 105,343,875.0 0
powder
Total 68,585,400.0 0 92,197,560.0 0 116,231,797.5 0 122,043,387.3 8 128,145,556.7 4
5.3.6 Balance Sheet (Beginning)

Asset Value in Br
Current asset 5,184,976
Cash 9,211,956
Inventory of raw material and input 14,396,933
Total current asset 28,793,865.00
Fixed asset 15,938,308.00
Land, building, and construction 53,739,950.00
Machineries and equipments 15,422,500
Vehicles 401,980
Office equipment 401,980.00
Total Fixed Asset 85,904,718.00
Liability
Account payable 37,650,630
Owners equipment
Capital 12,550,210
Total Liability & Owners' equity 100,000,000

5.3.7 Income Loss Statement

Revenue Year l Year 2 Year 3 Year 4 Year 5
Sales Revenue 68,585,400.00 72,014,670.00 72,014,670.00 79,396„173.68 83,365,982.36
Expanses
Salary expanse 6,112,800.00 6,235,sssss 6,235,sssss 6,486,952 6,616,691
Operating expanse 8,581,527.00 8,838,973 8,838,973 9,377,266 9,658,584
Deprecation 400,460.00 400,460 400,460 400,460 400,460
building
Deprecation 2,700,500.00 2,700,500 2,700,500 2,700,500 2,700,500
machinery and
equip
Deprecation 1,550,000.00 1,550,000.00 1,550,000.00 1,550,000.00 1,550,000.00
vehicle
Deprecation office 20,200.00 20,200 20,200 20,200.00 20,200.00
equip
Interest expanse 3,200,303.56 2,880,273.21 2,560,242.85 2,240,212.49 1,920,182.14
Royalty payment 1,371,708 1,440,293 1,512,308 1,587,923 1,667,320
Total expanse 23,937,498.56 24,065,755,42 24,207,610.03 24,363,514.48 24,533,937.33
Profit Before Tax 44,647,901.00 47,948,914.58 51,407,793.47 55,032,659.19 58,832,045.02
Tax (30) 15,422,338.04 16,509,797.76 17,649,613.51
Net profit 44,647,901.0V44 47,948,914.58 35,985,455.43 38,522,861.43 41,182,431.52

5.3.8 Cash Flow Statements

Year YearO Year 1 Year 2 Year 3 Year 4 Year 5
Equity capital 12,550,210 j
1 cm principle 37,650,630
Nri sale 0 68,585,400.00 92,197,560 1162,231,79 79,396,173.6 83,365,982.36
. 00 7 .50 8
Total cash in follow 50,200,840 68,585,400 92,197.560 116,231,798 79,396,174 83,365,982
Cash payment
Salary expanse 6,112,800 6,235,056 6,359,757.12 6,486,952.26 6,616,691.31
I're operating expanse 215,000.00 0 0 0 0 L°
Investment 42,966,200 0 0 0 0 0
Other operating cost 0 8,581,527.00 8,838,973 9,104,141.99 9,377,266.25 9,658,584.24
Loan repayment 0 6,965,366.58 6,645,336. 6,325,305.87 6,005,275.51 5,685,245.15
22
Royalty payment 0.00 1,371,70 1,440,293 1,512,308 1,587,923 1,667,320
Tax payment 43,181,200 - - 15,422,338.0 16,509,797.76 17,649,613.51
Cash surplus/Deficit 7,019,640.20 23,031,402 23,159,658 38,723,8514 39,967,215 41,277,454
Cumulative cash flow 45,553,998.42 69,037,901 77,507,946.4 39,428,958.4 42,088,528.50
. 57 2
45,553,998.40 114,591,89 192,099,846.
1 231,528,804. 273,617,33.32
9.99 82
40
5.3.9 . Profitability
According to project income statement the project will start generation profit in the lsf year-
operation important ratios such as profit to total sales net profit to equity.' (Return on equality)
and net profit plus interest on total investment (return on total investment) show an increasing
trend during the lifetime of the project the income statements and other indicator of profitability
show that project is viable.
5.3.10 Pay-Back Period

The investment cost and income statements projection are used to project the pay-back period.
The project's initial investment will be fully recovered within 2.2 years of the project operation.

6. FUTURE DEVELOPMENT
Every business undertaking is it large or small should have future development plan. It is a plain
fact that business activities are undertook in dynamic business nature and different environment.
Therefore the factory will have an expansion phases depending on the condition of the industry
character particular in producing the profile itself by installing the plant. In this regarded, the
project will expand its capacity and product diversification in the future.
7. ENVIROMNTAL IMPACT OF THE PROJECT

Environmental aspects are fundamental for the sustainability assessment of the current and novel
designs of this project. To assess the impacts and design mitigation measure if any adverse are
there so as to make the project benefited more and nation.
The extraction process implies an unavoidable impact on the landscape and natural environment,
however, human activities does not necessary mean loss of biodiversity and danger for eco-
systems.
7.1 Issues & Impacts Mining/Quarrying Project

The key environment problems and impacts of mining/quarrying are
 land degradation
 degradation of forest and loss of biodiversity
 air and noise pollution
 surface water pollution
 ground water pollution
 environmental degradation due to abandoned and closed mines

 land Degradation
Land degradation is one of the significant impact arising out of mining and quarrying activities
which is mainly in the form of alteration of land structure due to excavation stacking of top soil
and loss of land due to dumping mine waste and overburden soil, stone and quarrying cause
damage to property depletion of ground water , loss of fertile top soil, degradation of forest land
adverse effect on the aquatic biodiversity's and public health haphazard quarrying of sand from
the damage to infrastructure like bridges and roads.
The estimated extent of land degradation due to mining and storage wastes like over burden soil
and mine tailings is not available. Under these circumstances, only indirect methods like remote
sensing aerial photography coupled with ground trotting can be used to arrive at realistic estimate
of the extent of land degradation in any particular region. Mining activities & environmental
impacts.
Activities | Environmental impact

Mine water pumped out during drainage Water pollution
Spent water from handling plants, dust
extraction and dust suppression system
Effluents from preparation and beneficiation
plants
Leacheates/wash offs from waste/tailings
dumps
Overburden and mine waste and tailings dump Land degradation
sites
High level of dust and particulate matter due to Air pollution
mining and transport of ores
Mineral beneficiation giving rise to emission Loss of biodiversity
of flume gases
Fragmentation of forest land
Diminished green cover
Blasting , drilling, underground mining Noise pollution.
equipment, ventilation fans, heavy earth
moving machinery, drills , dumpers, crushing
and cleaning equipments
Mining activities has led to fragmentation of forest land, diminished green cover, posing a threat
to conservation of species. The deforestation in the forecast area coupled with the high rainfall in
the project area has also led to soil erosion.
Degradation of forest and decrease in biodiversity mining and quarrying, either open cast or
underground, destroy landscape and forest ecosystem. The waste martial that remain after the
extraction of usable ores are dumped on the surrounding land thus causing loss to soil nutrients
and supportive micro flora and vegetation
 Air and Noise Pollution
Air pollution is a common environmental problem in all mines and quarries, especially opencast
operations. Air pollution spread beyond mine sites, thus affecting the buffer zone to a large
extent.
Blazing, drilling, underground mining equipment and ventilation fans are the source of noise and
vibration underground. Heavy earth moving machinery, drills dumpers and martial handling,
crushing and cleaning equipment are prominent source above ground. In beneficiation plants
noise and vibration are the primary occupational health problems. Ground vibration, caroused by
blasting damage structure and also cause annoyance to human beings.
 Surface Water pollution
Water pollution is a major concern in mining operation where ore being processed in flurry from
to enrich the low quality ore or extract metal like gold. Spill over/leakage of effluents containing
toxic chemicals (e.g cyanide, used in gold processing) or discharge of leachate from mine waste
surface runoff from overburden dumps during rains, result in degradation of water heavy
metals/toxic chemical or siltation. In the areas where sulphides (pyrites) are present in the ore,
water interacts and forms acid mine drainage which has low PH and contain high levels of
sulphides, iron, and total dissolved solids. These deplete oxygen level in water, increase toxicity
toxicity by rendering heavy metals, sulphides and fluoride soluble and create corrosion problems.

 Ground Water Pollution
The quality and quantity of ground water may get effected through various factors like surface
hydrology, soil texture and terrestrial vegetation, through the quantity of water may be benefited
by ground water recharge in open cast mines, in place where mining is below the water table
ground water is usually intercepted and pumped out or lost by evaporation thereby lowering the
water table.
This could result in loss of head or dewatering of wells within a radius of few kilometers of the
mine. Similarity even after mining and reclamation processes are over, groped water quantity can
still be affected adversely. If the mine is located in groundwater recharge area, the recharge
characteristic may get affected by the backfill martial which may differ from the original
characteristic of top soil and overburden of leased area. The quality of ground water can get
affected depending on the quality of leachates generated from the overburden martial whether
acidic in nature or rich in mineral content, thereby warranting adoption of appropriate control
measures.
 Abandoned/closed mines
Close/abandoned mines may case in degradation of land due to removal of top soil, health
hazards due to stagnated water in the pits, threat to human and animal life, contamination of land
and water bodies due to surface run off from mine waste dumps during monsoon period and air
pollution due to spread of dust particle from waste dumps. The small mines after becoming non-
functional create serious environmental and socio-economic impacts.
 Health impact
The health impacts of mining and quarrying are very server. Studies have shown that
stone/Gypsum quarrying and crushing cause silicosis, exposure to iron ore dust may cause
pneumoniosis and respiratory problem among worker of lime stone quarries.

7.2 Guidelines for Reclamation and Rehabilitation Measure
The major adverse impacts of mining are land deformation and deforestation. By proper back
filling, dozing, top soil spreading and soil amelioration, the land can be prepared for biological
reclamation. As far as possible back filling and land reclamation work should be carried on
concurrently with mining. The vacant land in the main leasehold should be utilized for tree
plantation. The green belt created around the mine workings would be aesthetically pleasant and
act as dust and noise filters.
The top-soil extracted should be used immediately for plantation work and where it can't be used
immediately, should be stacked separately, to be used later for rehabilitant mined out area and
dumps. The overburden dumps should not be created in layers of moderate thickness of say 8 to
10 m and each upper layer should be formed leaving a terrace at the outer edge of the lower
layer.
The individual layer may have slopes at angle of response of the dump martial but the overall
angle of slope by this method of formation in layer would come down to around 28 degrees ,
making it easier for erosion control and relegation of the dumps. Construction of check dams in
gullies and rivulets will help in checking erosion and down wash of silt. If overburden dumps
slopes cannot be avoided application of geo-textiles would help the revegetation-process.
If the mining project involves involuntary displacement of persons, suitable scheme for
compensating the families for their land homestead should be made and proper resettlement and
rehabilitation scheme prepared after due consultation with the persons being displaced.
Rehabilitation scheme for other project affected person should also be prepared.
7.3 Monitoring plan and implementation program

Environmental monitoring is an essential tool in relation to environmental management as it
provides the basis for rational management decision regarding impact control.
The monitoring program for the present project will be undertaken to meet the following
objectives:

 To check on weather mitigation and benefit enhancement measure have actually

been adopted , and are proving effective in practice
 To provide a means whereby any impacts which were unforeseen , can be

identified , and to provide a basis for formulating appropriate additional impact
control measures
 To provide information on the actual nature and extent of key impacts and the
effectiveness of mitigation and benefit enhancement measure which through a
feedback mechanism, can improve the planning and execution of future , similar
projects.
There are two forms monitoring:
1) Compliance monitoring which checks whether prescribed action have been carried out,
usually by means of inspection or enquires.
2) Effects monitoring, this records the consequence of activities on one or more environmental
components, and usually involves physical measurement of selected parameter or the execution
of surveys to establish the nature and extent of induced changes. Responsibility for the
implementation of environmental mitigation measure belongs to national authorities, institution
and partners.
Due to the insignificance or low negative environmental impact during construction no specific
monitoring action are necessary other than the usual ones taken by the environmental authorities.
The project will have annual budget estimated to be Br 150,000 for environmental project.
In conclusion, regard the project will undertake a separate and detail Environmental impact
Assessment based on requirement of EPA's environmental impact assessment guideline.

GYPSUM Project - Final

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GYPSUM Project - Final

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Gypsum quarrying Extraction and Processing

Project Profile for Gypsum Quarrying

Promoter- aatm international business industrial plc

The project to be implemented In The ANRS East Gojjam

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4. Organization, management and Manpower .............................................................................. 25

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2 Project Owner AATM International Business Industrial plc

5 Project Composition Quarrying, Extraction and processing of gypsum stone/rock

6 Land required 10 hectare

8 Employment 332 individuals (272 skilled and 60 unskilled)

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1.1 promoter profile

1.2 project justification

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1.3 Objective of the project

 To utilize the available raw material (Gypsum quarry) in Dejen.

 To exploit the gypsum market in the nation

1.4 The socio-economic significance of the project

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b) Contribute to the nation's development

d) General Foreign Exchange

f) Benefit the local community

g) Stimulate the Economy

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1.5. Locations, Infrastructure and Land

The main justification behind the selection of this location is;

 Strategically located to the central and largest market of the nation

 Relatively advanced development in infrastructure (power, water. Telephone internet

 All asphalt road to nearest market outlets

 Availability of huge skilled labour force

 Conductive investment policy and governance

 Availability of huge gypsum mineral deposit

B. Land use plan

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Table 1, premises required and land use

SN Description Land requirement (Hectare)

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2. MARKET STUDY AND PLANT CAPACITY

2.1.1. Demand factors for the Gypsum products

Project proposal for gypsum quarrying extraction and processing project

Table 2 Major Economic Indicators

Trends in performance of the economy: growth Rate (%) E.C

GDP in 1999/00 -2.1 11.7 12.6 11.5 11.5 11.6 10 10.4

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O/W 0.8 6.6 12.8 10.6 8.3 7.1

b). Population Growth

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2.1.2 Past Supply and Present Demand for Cement

Table 4; Apparent Consumption of (Tones)

Year E.C Production Import Total

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2.1.3 Projected Demand

 The pattern and trend of the construction industry.

 Expected technological changes that affect the structure of the construction

 Size of population and growth rate.

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Table 5- projected demand of Cement

Year2012 Projected Demand Existing capacity (Million Demand (million

2.1.4 Market Demand and Supply for Gypsum Board

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