Project Alas is seeking funding from astute investors to develop Africa’s largest salt refinery facility with the capacity to produce 45 MT/H of vacuum salt in Ghana. Unlike neighbouring salt projects, Alas’s production will be operational all year round and will be at 100% production from day one.
Funding Proposal: Seeking to raise USD $51.6 million long term loan at an interest rate, not more than 7%, for 10 years with 2 years moratorium.
Use of Funds
· All-year-round production. The project will be at 100% production from day one and will be operational all year round, with only one day required for planned maintenance. This differs significantly from competitors who can only operate seasonally.
· High-Profit Margin. Alas’s product merely costs $50 per ton to produce. Salt is sold for $130 per ton locally and potentially $240 per ton internationally.
· Monopoly in Ghana. There are two key drivers for industrial salt in Ghana – the oil and gas industry and the integrated aluminium industry. The integrated aluminium industry requires significant amounts of caustic soda, which requires significant amounts of high-quality industrial salt. Project Alas will be the only company in Ghana to have the ability to produce industrial salt of the quality and consistency required for these industries.
· Additional streams of income.
o DRINKING WATER: As a by-product, Project Alas will also produce 3.2 million litres of fresh drinking water per day. This can be sold to the vibrant Ghana water market where demand is expected to outstrip supply in the medium term.
o ELECTRICITY: Steam captured from production will deliver 6 Megawatts of electricity that can be sold to the national grid.
· Assets secured. Alas currently owns 1040 acres which are valued at $10 million.
· Letters of intent secured from Spanish Salt company and African Oil Company.
· Very few competitors in the wider region. Currently, there are only three players supplying salt to the whole of West Africa. Demand has considerably outstripped supply, causing a sizeable supply gap and robust opportunity for investors of project Alas
· Competitive in multiple markets. 70% of Alas’s total production will go towards servicing the sub-regional market where there is a supply gap. The remaining 30% will target the domestic/local market. Finally, given the competitive pricing and quality of Alas’s product, there is an opportunity for the product to be integrated into the high-end international market in industries such as pharmaceuticals.
· Partnership with world-renowned Swisse engineering company. The project will be developed through an engineering procurement and construction contract with a renowned Swisse engineering company with a specialisation in evaporation and crystallisation technology. The contract will be responsible for the supply, installation and construction of the project and will deliver the entire project on a turn-key basis.
· Valuable commodity. Despite the allure and status of gold, salts were deemed the most important commodities in parts of Africa. “Trade in salts was the most important regional commercial activity” (UNECA and AU, 2011).