S.C.MINBUCOVINAS.A. VATRA DORNEI / ROMANIA

OPPORTUNITY OF AFFAIRInfo on the Company Contact Company Name : S.C.MINBUCOVINAS.A.Vatra Dornei Address : Mihai Eminescu street no.1,5975 Vatra Dornei,Suceava department,ROMANIA Telephone : 04/0230/375047 Fax : 04/0230/375049 e-mail : smbucovina@rdslink.ro Web site : smbucovina.com Contact person eng.Moraru Ioan,general manager Telephone : 04/0230/375047 mobilphone : 0744/320252 Fax : 04/0230/375049 e-mail : smbucovina@rdslink.ro Operations Main activity or industry sector : mining and preparation Cu,Zn,Ba,Fe,Mn Other activities : manganese salts,other services Description of products/services : Products : copper concentrates (min.18% Cu) zinc concentrates (min.46% Zn) barita concentrates (min.90% BaSO4) feros-manganese concentrates (min.20-27% Mn,10% Fe) Services : industrial shipment mend equipments vamp contry roads Facilities, equipment, technologies, licenses : SCMINBUCOVINASA estate Markets served (% of sales) : 100% export copper and zinc concentrates 100 % MITTAL STEEL feros-manganese concentrates Main suppliers : TRAFIGURA BEEHER BV AMSTERDAM,COZMIRCOM BAIA MARE MITALL STEEL Production/Rendering/Development capacity (of which % currently used) 60 % copper and zinc concentrates 40% feros-manganese concentrates Number of employees : 200 Years of operation : over forty years Ownership % State (who) : 100% Romanian state % Private Romanian : 0% % Private foreign (country of origin of investment) : 0%

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Financial Annual turnover over last three years : is a state company with financial add to products Other Experience with foreign firms : export with TRAFIGURA BV Amsterdam Response language : english Response by fax/mail/e-mail? : yes Info on the Proposed Business Project1.

Summary of collaboration sought (select) Distribution Sales representation Investment amount and type of funds sought, purpose of funds Joint venture : between SCMINBUCOVINASA and an Occidental Corporation Joined research/development Other: branch of an occidental producer of manganese salts

Brief presentation of the concept of business project proposed (please include all necessary quantifiers and timeframe) Rehabilitation and retechnologisation of an existing manganese salts plant : Uzina de saruriIacobeni, to bring : o Manganese sulphat(MnSO4) for chemical uses,agriculture,chemical and biological purge, pesticidesMangoset,nutrient,to derive special pigments(blue,green,violet) o Manganese carbonat(MnCO3) for chemical uses,animal food,electrotehnical uses , pigments (white,red) o Manganese oxids (MnO,Mn3O4) for chemical uses,animal food,electrotehnical uses,pigments (brown,tawny,black with Fe) o Pure manganese salts(acetate,nitrate,cloride) for labor reagents, PET , Cymantren, electrotehnical uses,dryers a.= Rehabilitation of Uzina de saruriIacobeni : To increse the capacity and quality of the production while decreasing the production costs,to assure a complete controll in continous stream by implementing modern production technology for the fabrication of our traditional products. Instalation for termic agents : Q = 6 t fume/h ; P = 6 atm. Instalation for evaporation,crystallization and separation (manganese sulphate and ather acid salts) Instalation for dreyer bazic salts (manganese carbonat,manganese oxid) Instalation for encase solid bazic manganese salts Instalations to recuperate by products (sodium sulphate,amonium sulphate,amonium nitrate) The main objectives of this investment programe are : To increse the capacity up to a level of 2500 tones manganese salts and by produsts/year To increse the equipments productivity for every operation2. 2

To satisfy entirely our clients requests by ensuring a 100% quality of our products To ensure the on-line manner of quantitative and qualitative control of production To decrease the costs and losses To organize the production process in places endowed adequately,at hight standards b.= Retechnologisation ofUzina de saruriIacobeni To assimilate new technologies and develop the manufacturing process of the products Instalation with separation centrifuge (for manganese salts) Instalation with filter centrifuge (for bazic salts : MnCO3,MnO,Mn3O4) Instalations to extract pigments (blue,green,violet) Small instalations for pure manganese salts (nitrate,acetate,cloride),sp.PET granules. Various products: copper sulphate,zinc sulphate,barium sulphate,aluminium sulphate The main objectives of this investment programe are : To increse the capacity up to a level of 8500 tones manganese salts and by produsts/year, first for export. To increse the equipments productivity for every operation To satisfy entirely our clients requests by ensuring a 100% quality of our products To ensure the on-line manner of quantitative and qualitative control of production To decrease the costs and losses To organize the production process in places endowed adequately,at hight standards New plants : A new technology implementation programme Manganese permanganat,other manganates and manganites Manganese carbonyl (Cymantren) 3. Person in charge with the project Name : eng.Leniuc Vasile Position : commercial manager Address : Mihai Eminescu street no.1,5975 Vatra Dornei,Suceava department,Romania Telephone : 04/0230/375047 Mobil : 0722/262029 Fax : 04/0230/375049 e-mail : leniucvasile@yahoo.com 4. Type and quantity of resources needed from the US partner Thermic power Q= 6 t/h (P= 6 atm) Industrial equipments (crystallizing evaporator,evaporating plant,centrifugal filter and centrifugal clarifier,ratio separator,drying plant , pilot unit, for acid and basic manganese salts) industrial automatisations,labor instruments. designing chemical programs 5. Estimated US Dollar value of the above : 9,000,000.00 $ 6. One-time purchase / future shipments needed?3

a.= Rehab. of Uzina de saruriIacobeni : 3,600,000.00 $ b.= Retechn. ofUzina de saruriIacobeni : 3,400,000.00 $ 7. Date needed by : a.= Rehab. of Uzina de saruriIacobeni : trim.IV 2007 b.= Retechn. ofUzina de saruriIacobeni :trim.II 20088.

Shipping Terms : franco Uzina de saruriIacobeni

General Manager eng.Moraru IoanCommercial Manager eng.Leniuc Vasile Vatra Dornei,20.06.2007

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