Business Plan On Comprehensive Industrial Development Project For Ugu Rare Earth Deposit

With the comprehensive industrial project of rare earth ore in ugu as a case study, and in view of excess capacity and huge demand gap in rare earth ore in China, this article makes detailed examination on the significance of project development, development conditions, product analysis, market analysis, financial and risk analysis, and proposes conclusive opinions to the project from political, technical and economic aspects through reviewing whether or not the comprehensive industrial project of rare earth ore in ugu can go ahead with investment and development. The research process can be seen as a reference case for investment in mining industry projects.Politically speaking the project is viable as it caters to demand from various stakeholders. The project is aligned with the state development strategies of “Going Global” and “One Belt One Road” to “consume” domestic excess capacity. The project helps to create jobs in ugu, add more taxes and improve infrastructure and well-being of local residents. The phosphate fertilizer and steel materials produced can provide support to agricultural and industrial development in ugu and neighboring countries, which will receive policy support from local government. While corporations make financial returns with their investment, they also expand their influence in Africa, which would be beneficial to their global investment.Technically speaking, the project is viable as it has sophisticated technology and all technical obstacles have been addressed. The project has huge resources reserves, with abundant associated valuable metals and high development value. Ore sorting and recovery technology indicators can bring financial returns, with stable water and power supplies and excellent transportation conditions. Project location enjoys favorable natural conditions. Despite outdated industrial foundation, industrial equipment can all be produced and processed domestically.Financially speaking, the project is viable as it is profitable and investment returns will be made in short term. As shown in present analysis, the products are competitive and will have strong sales. According to calculation on project costs, expenses, profits, solvency and risk resistance ability, it is shown that the products have strong competitiveness on the market, and strong ability to resist risks. The time needed to recover after-tax returns on investment is 6.49 years, including 2 years of construction.On the basis of thorough research into the project, the article makes systemic and scientific analysis, forecast and assessment from project market, engineering, finance and economic aspects. Based on that, the article proposes conclusive opinions to the project on whether or not to invest in and develop the project, provides scientific argument for investment decision-making, and puts forward suggestions for future development of the project.