Mozal

Executive summary The Mozal d in the raw as devised by the Sponsors testament pee a first gear cost exceedingly competitive aluminum smelter in Mozambique. Mozambique, a unequal emerging commercialize surface atomic number 18a recoering from a polished 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 de experimental conditionination whether to invest in the bear. They also have to persuade banks and outgrowth finance insitutions - including IFC that the project has been well structured with viable pecuniary and sparing retort, satisfactory to warrant their enthusiastic participation in the project. An analysis of the project cash flows and measures taken to mitigate the essential risks reveals that the Sponsors have adequately dealt with all important risks. The Mozal project has a positive salary presen t value and exceeds the internal return hurdle thereby warranting investment by the Sponsors and fetchers. 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.

sum-up of facts The Mozal Project, a low cost aluminum production workings to be localise up in Mozambique, is a word venture amongst Alusaf and the Industrial Development Corporation (IDC) ( the Sponsors) who are the rectitude invest! ors in the project and will each provide $125m outlay of equity into the project. Major inputs needed to produce aluminum are alumina, electricity, confinement and other raw materials. The sponsors have secured long term 25 year contracts for supply of Alumina and Electricity and raw materials on prices linked to LME aluminum prices. Labour will largely be sourced from the low cost Mozambique workforce. Based on this plan, the breakeven...If you loss to enamor a full essay, order it on our website: BestEssayCheap.com

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