Supplying proprietary technology of producing an annual output of 10,000 tons of cryolite project

1. Project Apellation: annual output of 10,000 tons of cryolite project

2.  Brief Introduction of Product: Cryolite (synthetic cryolite, sodium aluminium fluoride)

Molecular Formula: Na₃AlF₆                        Molecular Weight: 209.94

Properties: It is a colorless monoclinic crystal, white crystal or powder. It often appears to be off-white, reddish and light yellow because of containing of impurity. Cryolite is of relative density 2.9-3.0, melting point 1000 and refractive index 1.364. It is slightly soluble in water and the aqueous solution appears to be acidic. Its toxic. It decomposes when meeting alkali. Its soluble in aluminum and molysite solution, but insoluble in hydrochloric acid. Its caustic. It decomposes to release poisonous HF gas when meeting sulfuric acid.

3.Usages: Its mainly used as cosolvent in aluminum smelting, cropper insecticide and flux and whiting agent of enamel glaze. It is used in manufacturing milky white glass (glass opacifier). It is also used as metal solvent in producing aluminum alloy and rimming steel and the wearable filler of rubber, grinding wheel and emery paper.

4. Product Market Analysis

Requirements of cryolite in domestic market increase year by year in a recent decade. Especially in recent three years, the expansion speed of domestic electrolytic aluminum factory is rapid, so requirements of cryolite and aluminum fluoride also increase swiftly. According to average cryolite consumption in each domestic manufacturer, it needs investing 4,000 tons cryolite as cosolvent while increasing 100,000 tons electrolytic aluminum production capacity; in normal production situation, it will consume 15-25kg of cryolite while producing a ton of electrolytic aluminum. Altogether these two factors, requirements to cryolite in domestic electrolytic aluminum industry have reached 300,000 tons by 2006. Meanwhile, requirements to cryolite in aluminum alloy and rimming steel production and grinding wheel industry are approximately 20,000 tons; annual requirements to cryolite in international market are approximately 480,000 tons. Average price of cryolite in 2005 is RMB 5,200/T, in 2007 is RMB 7,100/T and in 2008 goes up to RMB 9,500/T.

5.Investment Contents: Investment in the fixed assets is RMB 9,500,000, including,

1.      15 acres of land, RMB 1,500,000

2.      land construction 2200m², RMB 1,300,000

3.      facilities RMB 4,200,000

4.      transferring cost of proprietary technology RMB 1,500,000

5.      designing cost RMB 500,000

6.      other cost RMB 500,000

6.Advantages of our Technology: There are various production technologies of cryolite, the new technology that our company provides is: fluorine-containing material (hydrofluoric acid, fluorosilicic acid, sodium fluorosilicate), aluminum-containing material (bauxite, aluminum hydroxide, waste activated alumina, sodium aluminate), sodium-containing material (sodium sulfate, sodium chloride, sodium aluminate, sodium hydroxide, sodium fluorosilicate), arbitrary three materials can synthesize cryolite. In addition,

1.      the cost of raw material is low, in principle we dont use high-priced material such as hydrogen fluoride

2.      choosing technology route according to local resource situation

3.      the quality of product reaches international market requirement (in excess of national standard GB/T 4291-1999 superfine)

4.      we can help sell parts of products

7. Benefit Analysis

Annual output of 10,000 tons of cryolite, annual sales revenue is RMB 92,000,000, annual profit is RMB 22,000,000 and tax and additional is RMB 4,200,000; payoff period of static investment is less than 18 months (including construction period of 10 months); capacity utilization rate of breakeven point is 25%. It can earn foreign exchange through exports USD 2,000,000.

8.Services those our company supplies

1.      detailed design of proprietary technology P&D of cryolite

2.      detailed design of proprietary facilities

3.      detailed design of process and utility piping

4.      basic design of electric and control

5.      general equipment selection

6.      general layout design according to the actual situation

7.      information for fire control, security, construction, environmental protection and some other designs.