Investment project of industrial peat extraction

Project summary

Investment project of industrial production of peat (peat of the lowland type, swamp subtype, grass and grass-moss group) on the plot "Zakrynytsia-1" with an area of 143 hectares, located in the village of Kosmachiv, Rivne district, Rivne region

An investment proposal for peat extraction can be attractive to investors, especially those interested in environmentally friendly production processes and sustainable development. This industry requires equipment and technologies for efficient production and environmental protection. "Gelateria Distribution" LLC has a special permit for the extraction of peat for use as fuel and fertilizers from April 27, 2021.

The purpose of the project :

Creation of an efficient and sustainable production base for peat extraction using modern technologies and methods, minimizing the impact on the environment. The project is intended for the production of ecologically clean peat for use in agriculture and energy.

The main indicators of the project:

The total area of the deposit within the zero deposit: 143 hectares

Total volume of reserves (resources): 1,077 thousand tons

Planned project extraction capacity: 40,000 tons per year

Gross production income per year at the declared capacity: $1,800,000

Estimated financial results of the project:

Required volume of investment funds:

$1,100,000 (for an active investor)

$ 1,700,000 (for a passive investor)

EBITDA upon reaching the declared capacity of the project: $850,000-$1,000,000 per year

The payback period of the project upon reaching the planned project capacity: 2-3 years

Upon reaching the planned production capacity (40,000 tons per year), the break-even point will consist of the sale of 9-10 thousand tons.

The expenditure part of the project when reaching the planned project capacity:

Mining equipment: $400,000-$500,000

Preparatory technical works: $200,000-250,000 (drainage, afforestation, removal of the top layer of soil, etc.)

Payment for peat to the subsurface user in the person of the state $2/1t / 1 year: $80,000

Working capital: $150,000

Reserve capital: $150,000

The main advantages of the project for the investor:

1. Steady demand for peat . Peat is widely used in agriculture and energy, and demand for it remains stable.

2. Environmental cleanliness . The project is aimed at maintaining high standards of environmental safety and environmental protection.

3. Modern technology . Modern technologies and equipment are used to minimize emissions and optimize production.

4. Sustainability of production . Peat products can provide a steady flow of raw materials for many years.

The use of investments in the peat extraction project is aimed at achieving several key goals that contribute to increasing the productivity and profitability of the enterprise, namely:

1. Expansion of production . Investments can be used to expand peat production. This may include opening new mining sites, purchasing additional equipment and transportation, and increasing the number of workers. An increase in production volumes allows the company to supply more products to the market and occupy a larger share in this segment.
2. Optimization of production processes . Investments can be used to implement modern technologies and equipment that will help optimize production processes. This may include automating certain aspects of mining, which will help increase efficiency and reduce labor costs.
3. Development and implementation of environmentally friendly technologies . Investments can be directed to the development and implementation of technologies that reduce the negative impact of peat extraction on the natural environment. This includes peat processing and storage methods that do not pollute soil and water resources.
4. Marketing and sales of products . Investments can be directed to the development of marketing strategies and advertising risks for peat production. This will help to increase sales volume and popularize the product in the market. Investments can also be used to expand the distribution network and enter new markets.

In general, investments in a peat extraction project allow the enterprise to develop, ensure production stability and competitiveness in the market, as well as comply with environmental safety norms and standards.

Ensuring investment security.

A qualified team of specialists will be responsible for effective management and control of investment costs. Control and supervision of the use of funds and project management are ensured by relevant legal documents and contracts.

Our investment project offers unique opportunities for investors who wish to invest in environmentally friendly and sustainable peat production, aimed at meeting market demand and ensuring long-term profits.