The project proponent: Ruben Gareginovich Melkonyan

Address: Moscow, Chayanov St., 16, apartment 17, telephone (495) 251-18-59, (926) 230-33-76; e-mail: mrg-kanazit@mail.ru

The goal of the project: Setting up of a facility for production of silicate goods with usage of local silica-containing rocks.

Project description: Preliminary Russian glass market analysis, and preparation of the project for production of glass batch for glass-manufacturing plants’ needs are underway. Kanazit-1, valuable complex vitreous material of different chemical make-ups (plate glass and uviol, assorted glassware and crystal, illuminating glass and deep-green glass containers), is derived as the result of complex processing of amorphous rocks (perlites, pumices, rotten-stones, diatomites, gaizes, etc).

Project readiness stage:

1) New technology of Kanazit-1 glass batch production out of amorphous rocks was been designed.

2) 125 occurrences of diatomites and diatomia saprotels were explored within the research work devoted to Designing of technology of extraction and thermal processing of diatomites – raw material for construction, abrasive, food, paper, chemical and other industries. It can be stated that resources amounting 5 million cubic meters of C1 category are located in 13 deposits. In the Republic of Karelia diatomites are abundant in its northern (Louhsky district) and western (Suoyarvsky and Muezersky districts) parts.

Financial indicators of the project

Total amount of investments – 272.2 million RUR

Sources of financing – own or borrowed funds

Discounted payback period – 1.5 years

Expected effect:

- in terms of value, after allowing for inflation – 8.6 billion RUR (sales income within implementation of the project);

- in physical terms:

• Kanazit-1 - 136 thousand tons;

• Kanazit-2 – 372.3 thousand tons;

• Sodium nitrate - 51 thousand tons;

• Nonahydrate sodium metasilicate - 133 thousand tons.

Payback period – 3.6 years

Internal rate of return – 61.24 %.