Geo Survey&Mining

# Template State Owned Enterprises- Company Overviews OCPA - Ministry of Industry & Minerals Note: All currency figures are in 000's of Iraqi Dinars unless otherwise noted. 1. General Information Company Name: State Company for Geological Survey and Mining Sector Construction Brief Description Conducting geological, geochemical, geophysical, hydrogeological and engineering geological surveys. Exploration and prospecting for metallic ores and industrial minerals and rocks. Mining and processing of metallic ores and industrial minerals. Directing and supervising mineral exploration activities by government and private sectors. Marketing raw and processed metallic ores and industrial minerals inside and outside Iraq. Started in 1969 as Nat'l Iraqi Minerals Co. Revenue in 2002 (Iraqi Dinars '000s) 7856280 # of Employees 1204 Annual Employee Salaries & Bonus 2256268 Headquarters Address Al-Andalus Square (Near the Red Cross), Baghdad. PO Box 968 2. Company Highlights Finished products and services are in demand by various local industries. Well organized Company. Presents self well. Clearly identified operational needs and market opportunity. One issue: Company provided an extensive list of needs to restart operations. Many items appear to be long-term in nature. We need to quantify cost of absolute necessities. Heavily reliant on fuel subsidies. Used 8M liters of fuel in 2002, for a cost of only 80K ID. Allocated $1.5M USD for 2H 2003 operating budget and provided with zero mw off of grid. 3. Facilities Name Province City Grid Damage % Power Needs Headquarters Baghdad MB467867 0.1 Saltry Basra 0.9 Saltry Al Samawa 0.85 Technical Services Department Baghdad 1 Sodium Sulfate Plant Al Dour 0.05 Al Mosul Camp Al Dour 0.05 Western Deserts Mine 1 Value of All Plant & Equipment Before War, and Initial Purchase Dates and Prices for Major Items Total value of 1.9B ID, of which 1.4B were tangible assets and 500M were projects under construction. 1.7B ID was initially spent over a number of years (at different exchange rates). 4. Products Product Name Unit Measurement Design Capacity Available Capacity 2002 Production 2002 Revenue Services - Surveys and Exploration 598606 Manufacturing - Processing of Commodities 2110770 Commodities, including: 4985657 Salt (petrochemical, oil and food industries) Metric ton 250000 225000 202500 2340000 Sodium Sulfate (glass industry) Metric ton 3300 3000 2464 Iron ore (cement industry) Metric ton n/a n/a 174819 810000 Bentonite (oil industry) Metric ton n/a n/a 11184 413000 Bauxite (aluminum & refractories industry) Metric ton n/a n/a 12072 Flint Clay (cement, refractories & glass) Metric ton n/a n/a 107900 Kaulin (ceramics, glass, refractories & cement) Metric ton n/a n/a 26319 Glass Sand (glass, ceramic & cement) Metric ton n/a n/a 75338 Feldspar Sand (ceramic & glass) Metric ton n/a n/a 3000 Standard Sand (cement) Metric ton n/a n/a 42 Description of Importance of Products to Other Iraqi Industries Provides raw materials, some of which are cost prohibitive to import (due to high transport costs), to various local industries. See partentheses next to product name for specifics. 5. Customers Customer Name 2002 Revenue Subsidized (Y/N) Products Sold to Customer and Unit Pricing State Company for Glass & Ceramics State Cement Companies State Oil Companies 136612 Industrial salt State Company for Petrochemical Industries 495383 Industrial salt Al Furat State Company 196923 Industrial salt Private Sector, Including Exports to Syria 6. Suppliers Supplier Name 2002 Purchases Subsidized (Y/N) Products Purchased and Unit Pricing Company claims to have no suppliers of raw materials Current Payment Terms From Suppliers Payment immediately upon receipt for capital equipment. 7. Imports & Exports 2002 Import Markets for Raw Materials Belorussia, Russia and Syria Potential Import Markets in Free Market 2002 Export Markets for Finished Products Syria - white kaolin - 993 metric tons at $19 per ton. Potential Export Markets in Free Market Glass sand, white kaolin, bentonite and salt all in demand through M. East. 8. Competition Description of Competitive Situation Company claims no competitors. Hard to believe. Market Share Description Company claims to satisfy 100% of Iraqi demand for top three products. 9. Summary of War Damage & Looting of Property & Equipment Description of Damage Facilities and equipment, including heavy equipment such as drilling rigs, all looted and stolen. Current Operating Status Only Al Samawa salt refinery operating. All others closed. Immediate Property & Equipment Needs To Restart Operations Extensive list on file. Includes trucks, bulldozers, cranes, motors, generators and office equipment. 900M ID for furniture, basic production equipment and reconstruction of western desert mine camps. Total Cost to Return to Pre-War Condition Company can lease mining equipment for 100M ID per month. Separately, drilling rigs will cost $2M USD to replace if they can't be "provided" by other ministries. 10. Inventory Status Raw Material Status Major looting. Months of Material Supplies & Production Rate Immediate Raw Material Needs Extensive list on file. Includes 9K tons per month of explosives for mining in the Western Deserts. Finished Products Supply (Units and Value) 11. Fuel & Electricity Needs Description of Fuel Needs Gasoline -880,196 liters ;17,604 I.D.; kerosine 1,173.000 liters;11,730 I.D.;FUEL OIL - 5,020 LITERS ; 1,444 I.D. Description of Electricity Needs 646 MW 12. Other Needs to Restart Working Capital Needs Security Needs Ongoing looting. Needs additonal security. Other Needs 13. Strengths, Weaknesses, Opportunities & Threats Description of Strengths Company is sole specialized national body in geological surveys, mineral exploration & mining. The Iraqi territory requires more detailed and advanced geological surveys & mineral exploration. Wealth of national geological and mieral commodity data accumulated over 60 years. Can be useful to mieral processing anc chemical industries as well as building & construction sector. Highly qualified personnel. Description of Weaknesses Lack of production equipment,machines and vehicles. Lack of contact with the outside world for the 13 years. Lack of JV's with specialized mining firms Lack of funding for capex and equipment upgrades. Weak marketing skills. Description of Opportunities Improving the quality and quantity of semi - processed mineral raw material for export. Exploration and mining in Kurdistan. Description of Threats Equipment problems due to looting, war damage. Security problems, particularly in remote mines of western desert and salt refineries. Low employee morale due to average 50% pay cut under CPA's 4 tier pay structure.