Mozal

Executive summary The Mozal d stinging as devised by the Sponsors leave alone pee a first gear cost highly competitive aluminum smelter in Mozambique. Mozambique, a low-down emerging commercialize surface ara recoering from a civilian war that devastated the countrys economy, presents unique risks for this befuddle which threatens the viability of the chuck. The sponsors, Alusaf and industrial Developmental sess have to make the critical decisiveness whether to invest in the visit. They also have to persuade banks and organic evolution finance insitutions - including IFC that the project has been well structured with viable pecuniary and scotch lessen, satisfactory to warrant their enthusiastic participation in the project. An analysis of the project cash flows and measures taken to mitigate the classic risks reveals that the Sponsors have adequately dealt with all important risks. The Mozal project has a positive salary present value and exceeds the internal r eturn hurdle thereby warranting investment by the Sponsors and contributeers. IFC should finance and lend its expertise to the project will provide significant economic value to Mozambique over the life of the project. The real option imbedded in the project creates supererogatory value for all stakeholders in the project thereby providing additional reason to invest in the Mozal project.

stocky of facts The Mozal Project, a low cost aluminum production set up to be localise up in Mozambique, is a interchangeable venture amongst Alusaf and the Industrial Development Corporation (IDC) (the Sponsors) who ar e the loyalty investors in the project and! will each provide $125m charge of equity into the project. Major inputs needed to produce aluminum are alumina, electricity, confinement and other raw materials. The sponsors have secured long end point 25 year contracts for supply of Alumina and Electricity and raw materials on prices linked to LME aluminum prices. Labour will more often than not be sourced from the low cost Mozambique workforce. Based on this plan, the breakeven...If you inadequacy to enamor a full essay, order it on our website: BestEssayCheap.com

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