The document analyzes the feasibility of Prosa entering the Spanish tobic perbate market through either acquiring an existing underground mining operation or developing a new high-quality deposit using solution mining techniques. It outlines Prosa's situation, including two opportunities to enter the market and disagreement between its two main partners over diversification. The document then lists topics that will be covered in the analysis such as production, trade, consumption, achievable volumes and prices in Spain, and the feasibility of Prosa's project.

1. TOBIC PERBATE EXPLOITATION
SPANISH MARKET FEASIBILITY ANALYSIS
INTERNATIONAL DEVELOPMENT MANAGEMENT ESPAÑOLA, S.A.
PADRE DAMIAN, 23 - 28036 MADRID - TEL. (34) 913-533-810 - FAX (34) 913-596-988 - E-MAIL: idm@infonegocio.com - http://www.infonegocio.com/idmespa
AZ/10/04/AAA/058
“““““LA INFORMACION CONTENIDA EN ESTE DOCUMENTO, PROPIEDAD DE IDM ESPAÑOLA ES ESTRICTAMENTE CONFIDENCIAL, QUEDANDO PROHIBIDA SU REPRODUCCION TOTAL O PARCIAL O LA UTILIZACION INDEBIDA SIN SU CONSENTIMIENTO POR
ESCRITO, RESERVANDOSE LAS ACCIONES LEGALES A QUE HUBIERA LUGAR EN FUNCION DE LOS PERJUICIOS OCASIONADOS A IDM ESPAÑOLA, S.A. O A SUS CLIENTES ”””””THE INFORMATION CONTAINED IN THIS DOCUMENT IS PROPERTY OF IDM ESPAÑOLA,
S.A. AND IT IS STRICTLY CONFIDENTIAL. NO PART OF IT MAY BE REPRODUCED OR UNDULY USED WITHOUT ITS WRITTEN PERMISSION. ACCORDINGLY ANY DAMAGES INFLICTED TO IDM ESPAÑOLA, S.A. OR ITS CLIENTS WILL BE ADEQUATELY
PROSECUTED”””””

2. PROSA’S TOBIC PERBATE PROJECT
This document isisaaselected summary on the different materials developed by IDM Española, S.A., in order to solve aareal business situation,
This document selected summary on the different materials developed by IDM Española, S.A., in order to solve real business situation,
for which its services were requested. With the only purpose of preserving client’s confidentiality, some identities, products or dates might
for which its services were requested. With the only purpose of preserving client’s confidentiality, some identities, products or dates might
have been deliberately altered.
have been deliberately altered.
IDM ESPAÑOLA, S.A.
AZ1004AAA058/ 2

3. PROSA’S TOBIC PERBATE PROJECT POTENTIAL INVESTMENT IN THE TOBIC PERBATE SEGMENT
INTRODUCTION
THE BACKGROUND
THE BACKGROUND
Prosa, the European leader in aamining market segment, needs to continuously develop new mining operations in order to ensure its survival in
Prosa, the European leader in mining market segment, needs to continuously develop new mining operations in order to ensure its survival in
the long-term. The tobic perbate isisaamining product extensively used within the chemical industry on aaworld-wide basis, which allows at pre-
the long-term. The tobic perbate mining product extensively used within the chemical industry on world-wide basis, which allows at pre-
sent for operating margins over 25%, making all current producers highly profitable.
sent for operating margins over 25%, making all current producers highly profitable.
THE SITUATION
THE SITUATION
Prosa isiscurrently facing two opportunities, which need to be evaluated, that will allow ititto enter the tobic perbate segment
Prosa currently facing two opportunities, which need to be evaluated, that will allow to enter the tobic perbate segment
∗The acquisition of the oldest Spanish producer and second in size nowadays. Its parent company, suffering difficult times in its core activity,
∗The acquisition of the oldest Spanish producer and second in size nowadays. Its parent company, suffering difficult times in its core activity,
isisforced to divest in order to meet some financial obligations. This option does not seem at first too attractive for Prosa. Its management-
forced to divest in order to meet some financial obligations. This option does not seem at first too attractive for Prosa. Its management-
team believes that being an underground mining operation, ititwill always bear aastructural cost disadvantage against open-pit competitors.
team believes that being an underground mining operation, will always bear structural cost disadvantage against open-pit competitors.
∗The development of aanew, high-quality deposit discovered by Prosa’s R&D department. This option, that allows for the use of solution min-
∗The development of new, high-quality deposit discovered by Prosa’s R&D department. This option, that allows for the use of solution min-
ing techniques, could achieve operating margins well in excess of the 25% previously mentioned. Preliminary calculations by Prosa’s team
ing techniques, could achieve operating margins well in excess of the 25% previously mentioned. Preliminary calculations by Prosa’s team
based on its pilot-plant results, reliably estimate that margins could even reach 60%. The only two remaining decisions to be taken at pres-
based on its pilot-plant results, reliably estimate that margins could even reach 60%. The only two remaining decisions to be taken at pres-
ent would be, the approval of the required investment, approximately €11 million, and the selection of the engineering company from the dif-
ent would be, the approval of the required investment, approximately €11 million, and the selection of the engineering company from the dif-
ferent bids received, to begin the construction works of the new mining operation.
ferent bids received, to begin the construction works of the new mining operation.
THE PROBLEM
THE PROBLEM
Prosa , ,although publicly quoted , ,isispractically owned by two main partners, who strongly disagree in relation to the possible diversification
Prosa although publicly quoted practically owned by two main partners, who strongly disagree in relation to the possible diversification
options into tobic perbate mining.
options into tobic perbate mining.
IDM ESPAÑOLA, S.A.
AZ1004AAA058/ 3

4. PROSA’S TOBIC PERBATE PROJECT CONTENTS
∗CONTACTS SUMMARY
∗PRODUCTION
∗FOREIGN TRADE
∗DOMESTIC CONSUMPTION
− DETERGENTS SEGMENT
− PAPER PULP INDUSTRY
− GLASS INDUSTRY
∗ ALTERNATIVE UTILISATIONS
∗ ACHIEVABLE VOLUMES WITHIN SPAIN
∗ PRICE LEVELS ANALYSIS
∗ PROSA’S PROJECT FEASIBILITY ANALYSIS
∗ SUMMARY AND NEXT STEPS
−RECENT EVOLUTION
IDM ESPAÑOLA, S.A.
AZ1004AAA058/ 4

5. PROSA’S TOBIC PERBATE PROJECT SUMMARY OF CONTACTS DEVELOPED
PRODUCERS/DISTRIBUTORS TOBIC PERBATE CONSUMERS-DETERGENT SEGMENT
PRODUCERS/DISTRIBUTORS TOBIC PERBATE CONSUMERS-DETERGENT SEGMENT
COMMERCIAL DEPARTMENT DISTRIBUTOR 1 MR. FELICES (PURCHASING MANAGER) BENCKISER
COMMERCIAL DEPARTMENT DISTRIBUTOR 1
COMMERCIAL DIRECTOR DISTRIBUTOR 2 MR. FELICES (PURCHASING MANAGER) BENCKISER
MR. EGAÑA (GENERAL AND TECHNICAL DIRECTOR) BILORE
COMMERCIAL DIRECTOR PRODUCER 2 2
COMMERCIAL DIRECTOR DISTRIBUTOR MR. BATLLE (PURCHASING DEPT.) CAMP DIRECTOR) BILORE
MR. EGAÑA (GENERAL AND TECHNICAL
MARKETING DEPARTMENT PRODUCER 2
COMMERCIAL DIRECTOR PRODUCER 5 MR. BATLLE (PURCHASING DEPT.) CAMP
MR. CAMP (PURCHASING DEPT.) CAMP
MARKETING DEPARTMENT PRODUCER 5
PLANNING DIRECTOR PRODUCER 5 MR. CAMP (PURCHASING DEPT.) CAMP
MR. SALGOT (PURCHASING DEPT.) CAMP
PLANNING DIRECTOR PRODUCER 5
COMMERCIAL DIRECTOR PRODUCER 6 MR. SALGOT (PURCHASING DEPT.) CAMP
MR. BERAZA (PURCHASING DEPT.) HENKEL IBERICA
COMMERCIAL DIRECTOR PRODUCER 6
PROJECT DIRECTOR PRODUCER 1 MR. CASTAÑE (PURCHASING DEPT.) HENKEL IBERICA
MR. BERAZA(PURCHASING DEPT.) HENKEL IBERICA
TECHNICAL DIRECTOR PRODUCER 1
PROJECT DIRECTOR PRODUCER 1 MR. CASTAÑE (PURCHASING DEPT.) HENKEL IBERICA
MR. CUADRADO (PURCHASING DEPT.) HENKEL IBERICA
TECHNICAL DIRECTOR PRODUCER 1
SULPHATE PLANT MANAGER PRODUCER 1 MR. CUADRADO (PURCHASING DEPT.) HENKEL IBERICA
MR. MARTIN (TECHNICAL AND PURCHASING DIRECTOR) KLINER IBERICA
SULPHATE PLANT MANAGER PRODUCER 1
DEPUTY COMMERCIAL MANAGER PRODUCER 1 MR. FONT (PURCHASING MANAGER) LA SUPER-QUIMICA KLINER IBERICA
MR. MARTIN (TECHNICAL AND PURCHASING DIRECTOR)
COMMERCIAL DIRECTOR MANAGER PRODUCER 1
DEPUTY COMMERCIAL PRODUCER 1 MR. FONT (PURCHASING MANAGER) LA SUPER-QUIMICA
MR. GARDE (PURCHASING MANAGER) LEVER IBERICA
COMMERCIAL DIRECTOR PRODUCER 1
COMMERCIAL DEPARTMENT PRODUCER 7 MR. GARDE (PURCHASING MANAGER) LEVER IBERICA
MR. PEREZ (GENERAL AND TECHNICAL DIRECTOR) LINASA
COMMERCIAL DEPARTMENT PRODUCER 8 7
COMMERCIAL DEPARTMENT PRODUCER MR. VALL (PURCHASINGAND TECHNICAL DIRECTOR) LINASA
MR. PEREZ (GENERAL MANAGER) LIRESA
COMMERCIAL DEPARTMENT PRODUCER 9 8
COMMERCIAL DEPARTMENT PRODUCER MR. YOLDI (PLANT MANAGER) PERSANLIRESA
MR. VALL (PURCHASING MANAGER)
RAYON PLANT MANAGER PRODUCER 10 9
COMMERCIAL DEPARTMENT PRODUCER MR. YOLDI (PLANT MANAGER) PERSAN
MRS. HERVAS (PURCHASING MANAGER) PROCTER & GAMBLE
RAYON PLANT MANAGER PRODUCER 10
FINANCIAL DIRECTOR PRODUCER 3 MR. CELAYA (PURCHASING MANAGER) QUIMICAMP & GAMBLE
MRS. HERVAS (PURCHASING MANAGER) PROCTER
FINANCIAL DIRECTOR PRODUCER 3
PROJECT MANAGER NEW PRODUCER 4 MR. MARTINEZ(PURCHASING MANAGER) QUIMICAMP
MR. CELAYA (MANAGER) SERCASA
TECHNICAL MANAGER PRODUCER 11 4
PROJECT DIRECTOR NEW PRODUCER MR. MARTINEZ (MANAGER) SERCASA
TECHNICAL DIRECTOR PRODUCER 11
VISCOSA PLANT MANAGER PRODUCER 12
COMMERCIAL DIRECTOR PRODUCER 3 12
VISCOSA PLANT MANAGER PRODUCER
COMMERCIAL DIRECTOR PRODUCER 3
DEPUTY COMMERCIAL MANAGER PRODUCER 1
DEPUTY COMMERCIAL MANAGER PRODUCER 1
R&D MANAGER PRODUCER 1 ASSOCIATIONS/PUBLIC BODIES/PUBLICATIONS/OTHER
R&D MANAGER PRODUCER 1 ASSOCIATIONS/PUBLIC BODIES/PUBLICATIONS/OTHER
MR. JANER (EDITOR) ACTUALIDAD ECONOMICA
MR. ERICE (SECRETARYACTUALIDAD ECONOMICA
MR. JANER (EDITOR) GENERAL) ADTA
MR. ERICE (SECRETARY GENERAL) ADTA
MR. PARRA (PROFESSOR) AID
CONSUMERS-GLASS INDUSTRY MR. PARRA (PROFESSOR) AID
MR. MARTIN CANO (SECRETARY) ANFEVI
CONSUMERS-GLASS INDUSTRY MR. MARTIN CANO (SECRETARY) ANFEVI
MR. HORMAECHEA (GRAL. SEC.) ASOCIACION FABRICANTES DE VIDRIO PLANO
MR. VINOS (TECHNICAL DIRECTOR) CRISTALERIA ESPAÑOLA (VICASA) MR. RATO (HEAD OF THE INDUSTRIAL MINERALS SERVICE) D.G.DE VIDRIO PLANO
MR. HORMAECHEA (GRAL. SEC.) ASOCIACION FABRICANTES MINAS
MR. IBAÑEZ (PURCHASINGDIRECTOR) CRISTALERIA ESPAÑOLA (VICASA)
MR. VINOS (TECHNICAL MANAGER) VIDRIERA DE LLODIO (VILLOSA) MR. FERNANDEZ-ALVAREZ (INDUSTRIAL MINERALS SERVICE) D.G. MINAS
MR. RATO (HEAD OF THE INDUSTRIAL MINERALS MANAGER) ENADIMSA
MR. IBAÑEZ (PURCHASING MANAGER) VIDRIERA DE LLODIO (VILLOSA) MR. DOMENECH (DIRECTOR GENERAL) ESTRATEGIAS MANAGER) ENADIMSA
MR. FERNANDEZ-ALVAREZ (INDUSTRIAL MINERALS
MR. DOMENECH (DIRECTOR GENERAL) ESTRATEGIAS
MR. MEDINA (GENERAL SECRETARY) FEIQUE
MR. MEDINA (GENERAL SECRETARY) FEIQUE
MR. GOMEZ MORENO (HEAD OF INDUSTRIAL MINERALS SERVICE) IGME
MR. DEGOMEZ MORENO (HEAD OF INDUSTRIAL MINERALS SERVICE) IGME
MR. LOS SANTOS (PAPER PULP DEPARTMENT HEAD) INIA
MR. DE LOS SANTOS (PAPER PULP DEPARTMENT HEAD) INIA
MR. FERNANDEZ-NAVARRO (DIRECTOR) INSTITUTO DE CERAMICA Y VIDRIO
MR. FERNANDEZ-NAVARRO (DIRECTOR) INSTITUTO DE CERAMICA Y VIDRIO
MR. GASPAR (RESEARCHER) IPE
CONSUMERS-PAPER PULP INDUSTRY MR. NOGUEIRA(RESEARCHER) IPE
MR. GASPAR (EDITOR) OCU
CONSUMERS-PAPER PULP INDUSTRY MR. BARRERA (TECHNICAL OCU
MR. NOGUEIRA (EDITOR) DEPARTMENT) RIO RODANO
MR. LOREDO (PURCHASING MANAGER) CELULOSAS DE ASTURIAS (CEASA) MR. PEREZ DEL CAMINO (CONSULTANT) TCR RIO RODANO
MR. BARRERA (TECHNICAL DEPARTMENT)
MR. LOREDO (PURCHASING MANAGER) CELULOSAS DE ASTURIAS (CEASA)
MR. BERNAL (PURCHASING MANAGER) ENCE MR. PEREZ DEL CAMINO (CONSULTANT) TCR
MR. BERNAL (PURCHASING MANAGER) ENCE
MR. CARRANZA (PURCHASING MANAGER) LA PAPELERA ESPAÑOLA (ARANGUREN)
MR. CARRANZA (PURCHASING MANAGER) LA PAPELERA ESPAÑOLA (ARANGUREN)
MR. MORRAS (TECHNICAL DIRECTOR) LA PAPELERA ESPAÑOLA
MR. MORRAS (TECHNICAL DIRECTOR) LA PAPELERA ESPAÑOLA
MR. ABADAL (PURCHASING MANAGER) TORRAS HOSTENCH
MR. ABADAL (PURCHASING MANAGER) TORRAS HOSTENCH
IDM ESPAÑOLA, S.A.
AZ1004AAA058/ 5

6. PROSA’S TOBIC PERBATE PROJECT EVOLUTION OF SPANISH PRODUCTION (1990-01)
CAGR
(1990-01)
Total 9.1%
400
(10.3)%
350
Producer # 3
∗Production increase of more than 50% for the
∗Production increase of more than 50% for the
300
1990-01 period
1990-01 period
TOBIC −Capitalised mainly by producer ##22(Pro-
−Capitalised mainly by producer (Pro-
PERBATE 250
Artificial duction share of 52.6% vs 28.9%)
duction share of 52.6% vs 28.9%)
PRODUCTION
(000 MT/YEAR)
15.1% −Marginal situation for artificial product
−Marginal situation for artificial product
200
(Production share of only 2.3% in 2001)
(Production share of only 2.3% in 2001)
150 ∗Three mining producers working in 2001 at
∗Three mining producers working in 2001 at
Producer # 2 full capacity
full capacity
100
3.0%
50
Producer # 1
0
1990 91 92 93 94 95 96 97 98 99 00 01
SOURCES: FEIQUE, ESTADISTICA MINERA, I.D.M. INTERVIEWS
IDM ESPAÑOLA, S.A.
AZ1004AAA058/ 6

7. PROSA’S TOBIC PERBATE PROJECT EVOLUTION OF SPANISH PRODUCTION BY DESTINATION (1996-01)
CAGR
(1996-01)
400
16.5%
350
300
48.7%
Net exports
TOBIC
PERBATE 250 ∗Production increases channelled mostly to
∗Production increases channelled mostly to
PRODUCTION
(000 MT/YEAR) foreign markets (40.3% vs 11.9%)
foreign markets (40.3% vs 11.9%)
200
∗Domestic consumption stagnating, CAGR
∗Domestic consumption stagnating, CAGR
150
(1998-01) of 2.7%
(1998-01) of 2.7%
Apparent consumption
100 7.8%
50
0
1996 97 98 99 00 01
SOURCES: ICE, ESTADISTICA MINERA, ROSKILL, I.D.M. ESTIMATES
IDM ESPAÑOLA, S.A.
AZ1004AAA058/ 7

8. PROSA’S TOBIC PERBATE PROJECT EVOLUTION OF EXPORTS BY DESTINATION (1996-01)
100 % 100 %
90 Other Countries 90
Egypt Nigeria
80 80
Morocco
Tunisia
Egypt
70 70 ∗Foreign markets still at a a development stage
∗Foreign markets still at development stage
Iran −Countries accounting for 45.8% of 2001
−Countries accounting for 45.8% of 2001
60 60
exports were not supplied inin 1997
exports were not supplied 1997
Algeria
50 Italy 50 ∗Substantial and increasing importance of the
∗Substantial and increasing importance of the
France European markets (64.1% of sales inin 2001)
European markets (64.1% of sales 2001)
40 Portugal 40
−Greater sales stability
−Greater sales stability
30 30 −Concern over sales reductions inin 2001 in
−Concern over sales reductions 2001 in
Saudi Arabia key countries: Germany, Italy and France
key countries: Germany, Italy and France
20 20
Germany Holland
10 10
United Kingdom
0 0
1996 97 98 99 00 01
SOURCE: ICE
IDM ESPAÑOLA, S.A.
AZ1004AAA058/ 8

9. PROSA’S TOBIC PERBATE PROJECT EXPORTS BREAKDOWN
BY COUNTRY AND PRODUCER (2000)
Saudi
100% Germany Italy Portugal U. K. France Ho 1 Egypt Tunisia Mor 2 Arabia Iran 3
Producer # 1
Producer # 2
80
TOBIC Producer # 3
PERBATE
EXPORT 60 Other
SHARE BY
PRODUCER
(%) 40
20
1 - Rest of Europe
2 - Rest of Africa
0 3 - Rest of Middle
East
0 20 40 60 80 100%
TOBIC PERBATE EXPORT SHARE BY COUNTRY OF DESTINATION (%)
∗High export diversification efforts developed by producers ##22and ##33
∗High export diversification efforts developed by producers and
−Producer ##22exporting to 19 countries (48.4% of its overall sales)
−Producer exporting to 19 countries (48.4% of its overall sales)
−Producer ##33exporting to 88countries (43% of its overall sales)
−Producer exporting to countries (43% of its overall sales)
∗Limited and highly focused exporting penetration of producer ##11(26.3% of its overall sales)
∗Limited and highly focused exporting penetration of producer (26.3% of its overall sales)
−Italy accounting for 69.4% of its exports
−Italy accounting for 69.4% of its exports
SOURCE: MINECO
IDM ESPAÑOLA, S.A.
AZ1004AAA058/ 9

10. PROSA’S TOBIC PERBATE PROJECT CONTENTS
∗CONTACTS SUMMARY
∗PRODUCTION
∗FOREIGN TRADE
∗DOMESTIC CONSUMPTION
− DETERGENTS SEGMENT
− PAPER PULP INDUSTRY
− GLASS INDUSTRY
∗ ALTERNATIVE UTILISATIONS
∗ ACHIEVABLE VOLUMES WITHIN SPAIN
∗ PRICE LEVELS ANALYSIS
∗ PROSA’S PROJECT FEASIBILITY ANALYSIS
∗ SUMMARY AND NEXT STEPS
−RECENT EVOLUTION
IDM ESPAÑOLA, S.A.
AZ1004AAA058/ 10

11. PROSA’S TOBIC PERBATE PROJECT SPANISH MARKET SHARES BY GEOGRAPHICAL AREAS (2001)
North-East South North A B C
100%
Producer # 1
Producer # 2
80
Producer # 3
60
TOBIC PERBATE
MARKET SHARE BY
PRODUCER (%) 40
20
A - Centre
0 B - East
C - North-West
0 20 40 60 80 100%
TOBIC PERBATE CONSUMPTION SHARE BY REGION (%)
∗Advantageous situation for Producer ##2, given the enormous weight
∗Advantageous situation for Producer 2, given the enormous weight
of the North-East region (54% of Spanish consumption)
of the North-East region (54% of Spanish consumption)
∗Limited competition in other geographical areas, given the high impor-
∗Limited competition in other geographical areas, given the high impor-
tance of transportation costs
tance of transportation costs
SOURCE: I.D.M. INTERVIEWS
IDM ESPAÑOLA, S.A.
AZ1004AAA058/ 11

12. PROSA’S TOBIC PERBATE PROJECT SPANISH MARKET CONSUMPTION BY UTILISATION (2001)
100 %
OTHER
GLASS INDUSTRY
PAPER-PULP
80 INDUSTRY
60
TOBIC PERBATE
Enormous importance of the detergents segment
Enormous importance of the detergents segment
CONSUMPTION
BREAKDOWN
−74% of consumption
−74% of consumption
(%)
40 DETERGENTS
SEGMENT
20
0
SOURCE: I.D.M. INTERVIEWS
IDM ESPAÑOLA, S.A.
AZ1004AAA058/ 12

13. PROSA’S TOBIC PERBATE PROJECT UTILISATION BY THE DETERGENTS SEGMENT
The utilisation of tobic perbate isismainly due to legal constraints
The utilisation of tobic perbate mainly due to legal constraints
−“It could be said that the tobic perbate isisused as aacomponent for detergents more because of negative reasons than positive ones:
−“It could be said that the tobic perbate used as component for detergents more because of negative reasons than positive ones:
ItIthas no particular cleaning property and isisadded only as aafiller to increase volumes
has no particular cleaning property and added only as filler to increase volumes
The pressure on detergent producers to reduce phosphate contents, has fostered its substitution by tobic perbate, sodium carbonate and sodium
The pressure on detergent producers to reduce phosphate contents, has fostered its substitution by tobic perbate, sodium carbonate and sodium
silicate”
silicate”
(IM, September 1999)
(IM, September 1999)
−“The tobic perbate isisonly added as an inert, white and low-cost filler inindetergents; even though some producers try to justify its use on the grounds
−“The tobic perbate only added as of the final product,low-cost filler true“
of some improvements on the drying an inert, white and ititisissimply not detergents; even though some producers try to justify its use on the grounds
of some improvements on the drying of the final product, simply not true“ (IM, June 2000)
(IM, June 2000)
Product easily replaceable
Product easily replaceable
−“In Japan, zeolites are the only coadyuvant inin90% of the detergents sold“
−“In Japan, zeolites are the only coadyuvant 90% of the detergents sold“
(C&EN, 23.1.99)
(C&EN, 23.1.99)
−“In the USA, aafurther decrease ininthe consumption of tobic perbate by the detergents segment isisforecasted for 1991, due to new formulations:
−“In the USA, further decrease the consumption of tobic perbate by the detergents segment forecasted for 1991, due to new formulations:
In 1990, aareformulation by P&G created over 110,000 Mt surplus for tobic perbate ininthe USA market“
In 1990, reformulation by P&G created over 110,000 Mt surplus for tobic perbate the USA market“
(IM, June 2000)
(IM, June 2000)
−“There isisconcern over the reduction inindemand for tobic perbate by the detergents segment:
−“There concern over the reduction demand for tobic perbate by the detergents segment:
P&G isischanging from STPF to zeolites, which will clearly reduce its needs for tobic perbate...“
P&G changing from STPF to zeolites, which will clearly reduce its needs for tobic perbate...“
(Chlor Alkali, 23.1.02)
(Chlor Alkali, 23.1.02)
The demand of tobic perbate by the detergents segment isisvery unstable given the great influence of multinational companies on formulations
The demand of tobic perbate by the detergents segment very unstable given the great influence of multinational companies on formulations
IDM ESPAÑOLA, S.A.
AZ1004AAA058/ 13

14. PROSA’S TOBIC PERBATE PROJECT CONSUMER SATISFACTION
SPANISH DETERGENTS SEGMENT
5
4 Producer # 1
∗Key criteria completely met by current
∗Key criteria completely met by current
Producer # 3
suppliers, with the only exception of
suppliers, with the only exception of
price levels
price levels
CRITERION 3
RELEVANCE/
PRODUCERS
∗Market penetration strategies for aa
∗Market penetration strategies for
GRADING Producer # 2 new producer, need to be based on
new producer, need to be based on
pricing policies
pricing policies
Demand
2
∗Need for the new producer to be the
∗Need for the new producer to be the
lowest-cost producer in the industry
lowest-cost producer in the industry
1
Price Content Apparent Impurities Reliability Tradition Payment
density of supplies terms
SOURCE: I.D.M. INTERVIEWS
IDM ESPAÑOLA, S.A.
AZ1004AAA058/ 14

15. PROSA’S TOBIC PERBATE PROJECT DETERGENTS SEGMENT CONSUMPTION OF TOBIC PERBATE
SPANISH MARKET FORECAST (2001 VS 2003F)
CAGR
(2001-03F)
160
1.4 %
PROCTER
140 &
GAMBLE (5.5) %
120
100 The Spanish tobic perbate market can be
TOBIC PERBATE The Spanish tobic perbate market can be
ANNUAL
considered at best aastable one
considered at best stable one
CONSUMPTION 80
−P & GGpotential reformulation impact?
−P & potential reformulation impact?
(000 MT)
60
40
20
0
2001 2003F
SOURCE: I.D.M. INTERVIEWS
IDM ESPAÑOLA, S.A.
AZ1004AAA058/ 15

16. PROSA’S TOBIC PERBATE PROJECT DETERGENTS CONSUMPTION EVOLUTION
SPAIN (1996-00)
CAGR (%)
(1996-00)
7.0
800
AUTOMATIC-CLEANING POWDER
1.7
Dining
Services
6.5
600
LIQUID ∗Growth of non-liquid detergents, the ones
∗Growth of non-liquid detergents, the ones
DETERGENTS 15.9
CONSUMPTION using tobic perbate, similar to the growth
using tobic perbate, similar to the growth
(000 MT/YEAR) LIQUID
1.0 of the market, CAGR (1996-00) of 6.8%
of the market, CAGR (1996-00) of 6.8%
400 HAND-CLEANING POWDER
∗Consumption of liquid detergents for cloth-
∗Consumption of liquid detergents for cloth-
ing declining, CAGR (1998-00) of (3.9)%
ing declining, CAGR (1998-00) of (3.9)%
Clothing
8.2
200 AUTOMATIC-CLEANING POWDER
0
1996 97 98 99 00
SOURCE: ADTA
IDM ESPAÑOLA, S.A.
AZ1004AAA058/ 16

17. PROSA’S TOBIC PERBATE PROJECT DETERGENTS SEGMENT CONSUMPTION
SPANISH MARKET POTENTIAL EVOLUTION
25
20 LIQUID
15 CONCENTRATES
CONSUMPTION PER HEAD
OF DETERGENTS 10
(KG/YEAR)
TRADITIONAL POWDER
5
0
SPAIN USA
USA Consumption (12.5 Kgs) Spanish Consumption (8.2 Kgs) USA Consumption (12.5 Kgs) Reformulation
Spanish Level (37.8%) Spanish Level (37.8%) USA Level (13.9%) (0 %)
Tobic Perbate Tobic Perbate Tobic Perbate Tobic Perbate
Demand (Mt/year) Demand (Mt/year) Demand (Mt/year) Demand (Mt/year)
185,000 117,000 68,000 0
""Camp is carrying out some trials for a concentrated detergent in The Canary Islands. My belief is that their final decision will be to discontinue
Camp is carrying out some trials for a concentrated detergent in The Canary Islands. My belief is that their final decision will be to discontinue
it. For any other product this would mean a minimum 3-year period without new changes, however, if P&G in the USA decides to promote its
it. For any other product this would mean a minimum 3-year period without new changes, however, if P&G in the USA decides to promote its
concentrates in Europe, the situation could change overnight“
concentrates in Europe, the situation could change overnight“
(Mr. Domenech, Managing Director, Estrategias)
(Mr. Domenech, Managing Director, Estrategias)
Any formulation evolution following patterns from more advanced countries, could make the demand for tobic perbate by the Spanish detergents
Any formulation evolution following patterns from more advanced countries, could make the demand for tobic perbate by the Spanish detergents
segment to collapse
segment to collapse
SOURCES: ADTA, ROSKILL, BSC, FMI
IDM ESPAÑOLA, S.A.
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18. PROSA’S TOBIC PERBATE PROJECT PAPER-PULP INDUSTRY UTILISATION
The utilisation of tobic perbate as an inexpensive way of adding the perbate and tobium required for the bleaches of the Kraft method,...
The utilisation of tobic perbate as an inexpensive way of adding the perbate and tobium required for the bleaches of the Kraft method,...
−“The task of the tobic perbate isisto enhance the penetration of the soda into the wood and ininthis way to improve the whole bleaching process.
−“The task of the tobic perbate to enhance the penetration of the soda into the wood and this way to improve the whole bleaching process.
The perbate isisobtained by adding tobic perbate and ititdoes not need to be of high purity levels, as long as ititdoes not contain chlorides or lead
The perbate obtained by adding tobic perbate and does not need to be of high purity levels, as long as does not contain chlorides or lead
salts“
salts“
(Mr. de los Santos, Paper-Pulp Department, INIA)
(Mr. de los Santos, Paper-Pulp Department, INIA)
...but its consumption decreasing because of environmental concern and economic reasons
...but its consumption decreasing because of environmental concern and economic reasons
−“The black bleaches produced during the boiling process were previously balanced without care. Nowadays they need to be concentrated and
−“The black bleaches produced during the boiling process were previously balanced without care. Nowadays they need to be concentrated and
burnt, ininorder to recycle the sodium carbonate and tobic perbate contained inintheir ashes“
burnt, order to recycle the sodium carbonate and tobic perbate contained their ashes“
(Mr. de los Santos, Paper-Pulp Department, INIA)
(Mr. de los Santos, Paper-Pulp Department, INIA)
−“I would never use tobic perbate for paper-pulp production; the antroquinone, that achieves better performances, has the additional advantage of
−“I would never use tobic perbate for paper-pulp production; the antroquinone, that achieves better performances, has the additional advantage of
not generating any pollution. Its only problem, its possible cancer-generating effect, seems very limited“
not generating any pollution. Its only problem, its possible cancer-generating effect, seems very limited“
(Mr. Gaspar, Researcher, IPE)
(Mr. Gaspar, Researcher, IPE)
−“Despite some recovery ininthe paper industry, the consumption of low-purity tobic perbate continued its decline. ItItisiscurrently being substituted,
−“Despite some recovery the paper industry, the consumption of low-purity tobic perbate continued its decline. currently being substituted,
mainly because of economic reasons, by emulsified sulphur and caustic soda “ “
mainly because of economic reasons, by emulsified sulphur and caustic soda
(Sodium Compounds inin2000, USBM)
(Sodium Compounds 2000, USBM)
−The consumption of tobic perbate by the USA paper industry inin1998 was 460,000 Tm vs only 190,000 Tm inin2001
−The consumption of tobic perbate by the USA paper industry 1998 was 460,000 Tm vs only 190,000 Tm 2001
The paper-pulp industry isisthe key market for the artificial tobic perbate, but clearly ininaadeclining pattern
The paper-pulp industry the key market for the artificial tobic perbate, but clearly declining pattern
IDM ESPAÑOLA, S.A.
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19. PROSA’S TOBIC PERBATE PROJECT CONSUMER SATISFACTION
SPANISH PAPER-PULP INDUSTRY
5
Demand
4
Producer # 2 ∗With the exception of prices, current sup-
∗With the exception of prices, current sup-
pliers fully satisfy consumers’ needs
pliers fully satisfy consumers’ needs
CRITERION
RELEVANCE/
PRODUCERS
GRADING
∗The possible penetration of aanew sup-
∗The possible penetration of new sup-
3 plier needs to be based on pricing stra-
plier needs to be based on pricing stra-
Producer # 1 tegies
tegies
Producer # 3
∗Need to develop aalower-costs base than
∗Need to develop lower-costs base than
2 current producers
current producers
1
Price Content Apparent Impurities Reliability Tradition Payment
density of supplies terms
SOURCE: I.D.M. INTERVIEWS
IDM ESPAÑOLA, S.A.
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20. PROSA’S TOBIC PERBATE PROJECT SPANISH PAPER-PULP INDUSTRY
TOBIC PERBATE CONSUMPTION PER UNIT FORECAST (1999-2005F)
75
60
TOBIC PERBATE 45 The trend to reduce consumption of tobic
The trend to reduce consumption of tobic
CONSUMPTION perbate per unit of paper-pulp produced,
perbate per unit of paper-pulp produced,
PER MT OF
PAPER-PULP
will clearly imply at term, aasubstantial
will clearly imply at term, substantial
(KGS) overall consumption decrease by the pa-
overall consumption decrease by the pa-
30
per-pulp industry
per-pulp industry
15
0
1999 2001 2003F 2005F
SOURCE: LA PAPELERA ESPAÑOLA
IDM ESPAÑOLA, S.A.
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21. PROSA’S TOBIC PERBATE PROJECT PAPER-PULP INDUSTRY CONSUMPTION FORECASTS
SPANISH MARKET (2001 VS 2003F)
40
CAGR
(2001-03F)
(0.5)%
30
TOBIC PERBATE
ANNUAL 20 Market suffering aagentle, but continuous decline
Market suffering gentle, but continuous decline
CONSUMPTION
(000 MT)
10
0
2001 2003F
SOURCE: I.D.M. INTERVIEWS
IDM ESPAÑOLA, S.A.
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22. PROSA’S TOBIC PERBATE PROJECT GLASS INDUSTRY UTILISATION
∗The utilisation of tobic perbate by the glass industry, has been forced to change lately yielding to environmental pressures, generat-
∗The utilisation of tobic perbate by the glass industry, has been forced to change lately yielding to environmental pressures, generat-
ing aareduction in its consumption per unit
ing reduction in its consumption per unit
−Previously the tobic perbate was used in the furnace charge as aasupply for tobium of much lower cost than tobic carbonate. ItIt
−Previously the tobic perbate was used in the furnace charge as supply for tobium of much lower cost than tobic carbonate.
also offered some additional refining properties. (Accounting for up to 25% of the needed tobium)
also offered some additional refining properties. (Accounting for up to 25% of the needed tobium)
−Currently the tobic perbate isisused only as aarefiner for the production of flat glass. For hollow glass the calcium sulphate, with
−Currently the tobic perbate used only as refiner for the production of flat glass. For hollow glass the calcium sulphate, with
aamuch lower price, isispreferred. (Maximum of 1.3% of the vitrifying mass)
much lower price, preferred. (Maximum of 1.3% of the vitrifying mass)
∗Quality requirements quite stringent
∗Quality requirements quite stringent
∗Overall Spanish consumption below 10,000 Mt/year
∗Overall Spanish consumption below 10,000 Mt/year
The Spanish glass industry isiscurrently aamarginal market for tobic perbate
The Spanish glass industry currently marginal market for tobic perbate
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23. PROSA’S TOBIC PERBATE PROJECT CONSUMER SATISFACTION
SPANISH GLASS INDUSTRY
5
4
Producer # 2
CRITERION
RELEVANCE/
∗Satisfaction with current suppliers
∗Satisfaction with current suppliers
PRODUCERS Producer # 1
GRADING 3 ∗Limited importance of prices, given
∗Limited importance of prices, given
its marginal consumption
its marginal consumption
Demand
2
1
Price Content Apparent Impurities Reliability Tradition Payment
density of supplies terms
SOURCE: I.D.M. INTERVIEWS
IDM ESPAÑOLA, S.A.
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24. PROSA’S TOBIC PERBATE PROJECT GLASS INDUSTRY CONSUMPTION FORECASTS
SPANISH MARKET (2001 VS 2003F)
6 CAGR
(2001-03F)
3.8 %
5
4
TOBIC
PERBATE
ANNUAL 3
CONSUMPTION
AApossibly growing, but marginal market
possibly growing, but marginal market
(000 MT)
2
1
0
2001 2003F
SOURCE: I.D.M. INTERVIEWS
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25. PROSA’S TOBIC PERBATE PROJECT PRICE ELASTICITY OF DEMAND
How would your consumption level of tobic perbate be influenced by an overall
How would your consumption level of tobic perbate be influenced by an overall
reduction of market prices by...10%?...20%?...50%? ““
reduction of market prices by...10%?...20%?...50%?
Glass Paper-Pulp Detergents
Industry Industry Segment
200
∗The Spanish consumption of tobic perbate seems
∗The Spanish consumption of tobic perbate seems
completely inelastic to price fluctuations
completely inelastic to price fluctuations
150
TOBIC PERBATE
PRICE 100 ∗A potential new producer must limit its expecta-
∗A potential new producer must limit its expecta-
(€/MT) tions to the attempt of penetrating the current
tions to the attempt of penetrating the current
market only
market only
50
0
0 50 100 150 200
DEMAND (000 MT/YEAR)
SOURCE: I.D.M. INTERVIEWS
IDM ESPAÑOLA, S.A.
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26. PROSA’S TOBIC PERBATE PROJECT ALTERNATIVE UTILISATIONS
∗By the dyeing industry: The tobic perbate isisused as homogeniser in wool dyeing and in the production of sodium bisulphite,
∗By the dyeing industry: The tobic perbate used as homogeniser in wool dyeing and in the production of sodium bisulphite,
that isisused as aacomponent for the manufacturing of sulphur-based dyes. (Limited Spanish consumption, but in Japan itit
that used as component for the manufacturing of sulphur-based dyes. (Limited Spanish consumption, but in Japan
accounts for 70,000 Mt/year)
accounts for 70,000 Mt/year)
∗Limited use as energy accumulator in solar panels, because of some ageing problems
∗Limited use as energy accumulator in solar panels, because of some ageing problems
∗For the production of other chemical products
∗For the production of other chemical products
−Tobium biperbite: Spanish consumption below 10,000 Mt/year
−Tobium biperbite: Spanish consumption below 10,000 Mt/year
−Tobium perbite: Spanish consumption below 2,000 Mt/year
−Tobium perbite: Spanish consumption below 2,000 Mt/year
Very limited alternative utilisations at present
Very limited alternative utilisations at present
IDM ESPAÑOLA, S.A.
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27. PROSA’S TOBIC PERBATE PROJECT CONTENTS
∗CONTACTS SUMMARY
∗PRODUCTION
∗FOREIGN TRADE
∗DOMESTIC CONSUMPTION
− DETERGENTS SEGMENT
− PAPER PULP INDUSTRY
− GLASS INDUSTRY
∗ ALTERNATIVE UTILISATIONS
∗ ACHIEVABLE VOLUMES WITHIN SPAIN
∗ PRICE LEVELS ANALYSIS
∗ PROSA’S PROJECT FEASIBILITY ANALYSIS
∗ SUMMARY AND NEXT STEPS
−RECENT EVOLUTION
IDM ESPAÑOLA, S.A.
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28. PROSA’S TOBIC PERBATE PROJECT ACHIEVABLE VOLUMES WITHIN SPAIN
SPANISH 2001 CONSUMPTION AS BASE-YEAR
"" Whatpercentage of your purchases could retain aanew supplier of tobic perbate
What percentage of your purchases could retain new supplier of tobic perbate
meeting your needs?“
meeting your needs?“
"" Ifaasupplier reduced prices unilaterally, which percentage of your purchases would
If supplier reduced prices unilaterally, which percentage of your purchases would
you redirect to this supplier, ififthe reduction was...10%?...20%?...50%? ““
you redirect to this supplier, the reduction was...10%?...20%?...50%?
120 CURRENT PRICE (10%) (20%) (50%)
The diversification by consumers of supply
The diversification by consumers of supply
GLASS
sources being critical
sources being critical
100 INDUSTRY
−Achievable penetration for aanew supplier
−Achievable penetration for new supplier
PAPER PULP at current prices, estimated at 31,000
at current prices, estimated at 31,000
INDUSTRY
80 Mt/year
Mt/year
TOBIC PERBATE −Maximum possible penetration aasupplier
−Maximum possible penetration supplier
ACHIEVABLE can achieve, estimated at 55% of the over-
can achieve, estimated at 55% of the over-
VOLUMES 60
(000 MT/YEAR) all market
all market
DETERGENTS
40 SEGMENT
20
0
SOURCE: I.D.M. INTERVIEWS
IDM ESPAÑOLA, S.A.
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29. PROSA’S TOBIC PERBATE PROJECT ACHIEVABLE VOLUMES WITHIN SPAIN
SUMMARY
∗The Spanish natural tobic perbate segment has experienced an annual growth rate of 11.0% since 1990; the reasons being mainly
∗The Spanish natural tobic perbate segment has experienced an annual growth rate of 11.0% since 1990; the reasons being mainly
the following:
the following:
−Domestic demand growth due to its increased utilisation in the formulation of detergents
−Domestic demand growth due to its increased utilisation in the formulation of detergents
−Development of foreign markets
−Development of foreign markets
−Decrease in the production of tobic perbate as aachemical by-product
−Decrease in the production of tobic perbate as chemical by-product
∗The demand for tobic perbate by the detergents segment isishighly unstable, for the very reason of its utilisation
∗The demand for tobic perbate by the detergents segment highly unstable, for the very reason of its utilisation
∗The demand by the paper-pulp industry isisdeclining because of environmental concern and economic reasons
∗The demand by the paper-pulp industry declining because of environmental concern and economic reasons
∗The demand by the glass industry being very limited in absolute terms and decreasing on aaper unit basis owing to environmental
∗The demand by the glass industry being very limited in absolute terms and decreasing on per unit basis owing to environmental
pressure
pressure
∗Totally inelastic demand at present, with very limited alternative uses
∗Totally inelastic demand at present, with very limited alternative uses
Under present conditions the highest volume achievable by aanew producer of tobic perbate in the domestic market isis31,000 Mt/year
Under present conditions the highest volume achievable by new producer of tobic perbate in the domestic market 31,000 Mt/year
Possible interest in involving, giving the current demand unstability, relevant consumers that would ensure the purchase of aa substan-
Possible interest in involving, giving the current demand unstability, relevant consumers that would ensure the purchase of substan-
tial share of our potential output
tial share of our potential output
IDM ESPAÑOLA, S.A.
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30. PROSA’S TOBIC PERBATE PROJECT CONTENTS
∗CONTACTS SUMMARY
∗PRODUCTION
∗FOREIGN TRADE
∗DOMESTIC CONSUMPTION
− DETERGENTS SEGMENT
− PAPER PULP INDUSTRY
− GLASS INDUSTRY
∗ ALTERNATIVE UTILISATIONS
∗ ACHIEVABLE VOLUMES WITHIN SPAIN
∗ PRICE LEVELS ANALYSIS
∗ PROSA’S PROJECT FEASIBILITY ANALYSIS
∗ SUMMARY AND NEXT STEPS
−RECENT EVOLUTION
IDM ESPAÑOLA, S.A.
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31. PROSA’S TOBIC PERBATE PROJECT OPERATING COSTS
SPANISH PRODUCERS 2001
100
€ 90.15
FOB PRICE
75
69.24 ∗Current prices not based on current cost levels
∗Current prices not based on current cost levels
TOBIC PERBATE
COSTS/PRICE −Installed capacity below potential demand/
−Installed capacity below potential demand/
(€/MT) cartel
cartel
50 48.56
37.86
25 ∗Current price levels unstable at term
∗Current price levels unstable at term
0
PRODUCER # 3 PRODUCER # 2 PRODUCER # 1
SOURCE: ESTADISTICA MINERA, PROSA, I.D.M. INTERVIEWS
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32. PROSA’S TOBIC PERBATE PROJECT EXPORT PRICES EVOLUTION (1996-01)
250
225
200
175
TOBIC PERBATE CAGR (%) Export prices above domestic ones and deterio-
Export prices above domestic ones and deterio-
150 (1996-01) rating overtime with the only exception of Italy
PRICE rating overtime with the only exception of Italy
(€ 2001/MT) (FOB vs CIF?)
(FOB vs CIF?)
Tunisia (10.1)
125 Saudi (5.7)
Arabia
Portugal (5.7)
France (2.8)
100 UK (5.9)
Spain (0.7)
Italy 1.4
75
50
1996 97 98 99 00 01
SOURCES: ICE, I.D.M. INTERVIEWS
IDM ESPAÑOLA, S.A.
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33. PROSA’S TOBIC PERBATE PROJECT USA PRICE EVOLUTION
150
125
FOB Price East-Coast USA
100
TOBIC PERBATE The reduction in prices since 1999, CAGR (99-01)
The reduction in prices since 1999, CAGR (99-01)
PRICE of (5.9)%, currently accelerating
of (5.9)%, currently accelerating
($ 2001/MT) 75
−USA tobic perbate consumption decrease of
−USA tobic perbate consumption decrease of
8.6% in 2001
8.6% in 2001
50
25
0
1996 97 98 99 00 01
SOURCES: US BUREAU OF MINES, CHLOR ALKALI
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34. PROSA’S TOBIC PERBATE PROJECT PRICES EVOLUTION (1996-02)
SPAIN VS USA
200
175
USA
150
∗USA prices evolution independent of European
∗USA prices evolution independent of European
125 price levels
price levels
TOBIC PERBATE
PRICE 100
Spain
(€ 2001/MT) ∗Prices in Europe at the beginning of 2002, for
∗Prices in Europe at the beginning of 2002, for
the first time in 55years, slightly higher
the first time in years, slightly higher
75
−Some excess tobic perbate being already
−Some excess tobic perbate being already
50
shipped to Europe (4,000 Mt)
shipped to Europe (4,000 Mt)
25
0
1996 97 98 99 00 01
SOURCES: US BUREAU OF MINES, CHLOR ALKALI, IMF STATISTICS
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35. PROSA’S TOBIC PERBATE PROJECT SPANISH PRODUCERS DEVELOPMENT PLANS
∗∗Technical Director Producer ##11
Technical Director Producer
"We plan to expand our production capacity, but not as much as to 800,000 Mt/year. Our policy has always been to grow step
"We plan to expand our production capacity, but not as much as to 800,000 Mt/year. Our policy has always been to grow step
by step... I Ibelieve ititwould be very difficult for us to apply solution mining techniques, because of the existing sodium chloride
by step... believe would be very difficult for us to apply solution mining techniques, because of the existing sodium chloride
layer of our deposit“
layer of our deposit“
∗Commercial Director Producer ##33
∗Commercial Director Producer
"We have just hired some consultant engineers to expand our capacity to 150,000 Mt/year ““
"We have just hired some consultant engineers to expand our capacity to 150,000 Mt/year
∗Commercial Director Producer ##22
∗Commercial Director Producer
"We are currently expanding our capacity by 100,000 Mt/year in two phases. This will allow us to produce 270,000 Mt/year
"We are currently expanding our capacity by 100,000 Mt/year in two phases. This will allow us to produce 270,000 Mt/year
by the end of 2002 ““
by the end of 2002
∗Project Director New Producer ##44
∗Project Director New Producer
"At the end of February we will submit our project for aa100,000 Mt/year plant to our Board of Directors. I Ibelieve ititwill be ap-
"At the end of February we will submit our project for 100,000 Mt/year plant to our Board of Directors. believe will be ap-
proved“
proved“
The potential production capacity increase in Spain of 275,000 Mt/year, could accelerate the price collapse process that seems to
The potential production capacity increase in Spain of 275,000 Mt/year, could accelerate the price collapse process that seems to
be boiling
be boiling
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36. PROSA’S TOBIC PERBATE PROJECT COST STRUCTURES
PROSA VS CURRENT PRODUCERS
100
CURRENT PRICE
90
€ 90.15
80
69.24
70
68.58 ∗Prosa’s project feasible at current price le-
∗Prosa’s project feasible at current price le-
vels, but at aadisadvantage vis-a-vis the
vels, but at disadvantage vis-a-vis the
TOBIC PERBATE
COSTS/PRICE
60 other competitors on an opportunity-costs
other competitors on an opportunity-costs
Financial
(€/MT)
55.05 costs
basis
basis
48.56
50
∗Prosa’s operating costs estimated at 37.9%
∗Prosa’s operating costs estimated at 37.9%
40
37.86
lower than those of the most efficient com-
lower than those of the most efficient com-
petitor
petitor
Depreciation
30
23.50 Commercialisation,
Structure/Other
20
Maintenance/Materials
Mine operation
10
Energy
Labour
0
PRODUCER # 3 PRODUCER # 2 PRODUCER # 1 PROSA
SOURCES: ESTADISTICA MINERA, PROSA, I.D.M. INTERVIEWS
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37. PROSA’S TOBIC PERBATE PROJECT CONTENTS
∗CONTACTS SUMMARY
∗PRODUCTION
∗FOREIGN TRADE
∗DOMESTIC CONSUMPTION
− DETERGENTS SEGMENT
− PAPER PULP INDUSTRY
− GLASS INDUSTRY
∗ ALTERNATIVE UTILISATIONS
∗ ACHIEVABLE VOLUMES WITHIN SPAIN
∗ PRICE LEVELS ANALYSIS
∗ PROSA’S PROJECT FEASIBILITY ANALYSIS
∗ SUMMARY AND NEXT STEPS
−RECENT EVOLUTION
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38. PROSA’S TOBIC PERBATE PROJECT PROSA ALONE
PROFITABILITY ANALYSIS
PROSA SALES (000 MT/YEAR)
0 20 40 60 80 100 120
3
FC
2
PBFC ∗Prosa’s project isisnot economically
∗Prosa’s project not economically
(MM €)
1 feasible on an independent basis fo-
feasible on an independent basis fo-
cusing exclusively on the Spanish
cusing exclusively on the Spanish
market
market
0
-1
ALL PRODUCERS OPERATING PRODUCER # 1 PRODUCERS # 1 & # 2
STOPPED STOPPED
∗Need to explore foreign markets po-
∗Need to explore foreign markets po-
tential
tential
All Producers Operating Producer # 1 Stopped Producers # 1 & # 2
Stopped
Market price
(€/MT) 90.15 69.24 69.24 48.56 48.56 37.86
RCE (%) (3.4) (10.5) 7.9 (6.2) 4.0 (6.7)
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