Lime Mine Financing in Malawi
The lime mine is located in the Southern Region of Malawi. Access to the area is through a dusty road 3km to the west of a rural centre. The Exclusive Prospective Licence (EPL)area is 259.1km² and the exact project area with the which is 22.3km².
The main products of the proposed project include:
· Hydrated Lime; and,
· Agricultural Lime.
The single objective is to position Rift Valley Mining Company Ltd as cheapest producer of quality hydrated lime, quick lime and agricultural lime in Malawi, commanding a majority of the market share within five years.
The planned cost of the investment is $33.7 million, which would be acquired through bank loans and private capital. The company, seeking $23.5 million in debt or a mixture of debt and equity financing. The funding will enable the company to fund:
· part of the cost of the Mine Plant and Machinery; and,
· part of our working capital requirements.
The World Bank estimates that the Malawi mining sector could be worth $500 million - $1 billion by 2020. Malawi’s National Export Strategy 2013-18, produced in December 2012, forecasts that mining exports will increase from $114 million in 2010 to $246 million in 2017 and to $493 million by 2027.
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