EXECUTIVE SUMMARY

The objective of this study is to provide an overview of the new aggregate plant at Shumaisi site, between Makah and Jeddah. Although, aggregates are relatively inexpensive at its source, the cost of transportation is often the major factor in determining the competitive cost to the consumer. The absence of natural aggregate at cost-effective transportation distances has prompted extensive use of manufactured aggregates. The extensive use of manufactured aggregates has required proper modification of characterization, design and construction practices. In addition, it has motivated studies to reduce energy consumption, to attain optimal crusher design and operation, and to minimize waste. Crushing operations can accommodate some adjustment to match the demand for each gradation.

Capital lay out cost SR 15,000,000daily production(m3) 3000working days(per year) 300

per m3 per day per year

SR 14.35 SR 43,050.00 SR 12,915,000

Selling Price SR 20.00 SR 60,000.00 SR 18,000,000 Net Profit SR 5.65 SR 16,950.00 SR 5,085,000

Cost of Production

1. Industry Overview

Aggregate is the chief raw material used in Portland cement concrete and asphalt, which are universally used for construction and road paving purposes.These basic resources are essential for building roads, houses, schools and hospitals. Aggregate has an amazing variety of uses. More than 95 percent of asphalt pavement and more than 80 percent of a concrete sidewalk is aggregate.

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2. Site Selection

There are three major considerations that are a prerequisite to opening a new aggregate plant:

1) Supply and demand in the local market area.

Daily an average of 18000 tons per day (11000 tons plus 7200 tons from johrana study) Is being supplied in local Makah market.

Local demand and daily productions at johrana aggregate plants

Sr. No Company /Owner Daily Production(tons)

Remarks

1. Musaad Almatrafy - Plant in erection stage2. Masood Al Lakhyani 12003. Jamhaan Al Lakhyani 12004. Mohajer Al Khaleeg Co. 9005. Rio Company - Don,t sell material6. Mohammad Abdul Rehman Al

Sewan1800

7. Bin Zohefa Co. 12008. Saudi Crushing Co. 24009. Al Jazeera Co. - Don,t sell material10. Artec Co. - Don,t sell material11. Arrfa Co. - Don,t sell material12. Khuddrey - Don,t sell material13. Wahda Al Antajeen - Plant is stopped14. Al Gharmol - Don,t sell material15. Al Martan 120016. Mansoor Sawadi 1200

Total daily production 11100 tons 6*1200=7200

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2) The type of deposit to be mined and the processes required to mine it.

In makah we have only granitic deposits and for large scale production we have to install fixed plant.

3) Obtaining the permits necessary to operate the site.

Permit for Shumaisi area is already in process and Eng. Abdul Manheim is working for it. Meanwhile sami rock is looking to occupy another area near Shumaisi outside Makah as soon as govt. starts licensing that area.

3. Plant Design

There are many plant-engineering options to consider, when setting up an aggregates plant from scratch. Using quality components from the start often prevents problems later.eg market review.

Market review

To see what the potential market is. Some of the pieces of information from the market review are as follows:

Information Market review1 How much of each product can be sold. 100 %2 Total product specifications. 1/2”,1/4”,3/4”,3/8”3 Are all sales by customer truck, or should delivery

services be offered?both

4 Selling price for all products. 20 to 26 SR/m3 5 Competition in the market area. In Shumaisi area Samirock plant

will be the 2nd one.

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Mineral characteristics

The mineral characteristics also play an important part in the decision as to whether or not the property is suited for aggregate production. The mineral characteristics will have to be analyzed to determine whether we can produce the materials our market review calls for. These characteristics also help to define the type of processing equipment that can be used. Some of the material characteristics we checked for making the proper decisions are listed below:

Material name. RhyoliteMaterial source (quarry or gravel pit). quarryBulk density +/- 1.6----1.8 tons/m3Specific Gravity. 2.77Aggregate abrasive value +/- 6----10Absorbtion 0.8%Hardness. 6---7Compressive strength. 150----250 N/mm2Chemical composition used to determine abrasiveness of material (requires at least the following: Silica, iron oxide, aluminum and magnesium oxide.)

average

Percent clay, dirt, etc. averageMoisture. 0.8%Feed material top size. 1000mmFeed material size distribution. 10%>900mm

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Type of plant

The type of plant selected will generally depend on how long the reserves will last. Sami rock is suggesting for stationary plant.

Stationary plant: This type of plant is generally associated with quarried materials where the expected life of the quarry is more than 10 years. Some of the characteristics of this type of plant are as follows:

Requires substantial civil work. Primary surge pile. Bins feeding crushers. Large stockpiles. Complete plant automation. Large clearances around equipment for servicing. Truck and loadout systems. Concrete and steel structures. Stationary conveyors.

Other things using jaw crusher as follows:

Ease of replacing wear members. Ease of setting adjustment to both compensate for wear and also product requirements. Good production rate. Easy Serviceability. Easy Parts availability. Ease of operation.

Process flow

The process flow is one of the most important parts in defining how your new aggregate plant is going to operate to make the required products as economically as possible.

Along with selection of the proper crusher, the proper screens and feeders need to be made. Some of the information required to select the proper screen or feeder are listed below:

feed size. Feed gradation. TPH.

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The process flow starts with the plant feed material and ends when all of the products have been produced.

Plant layout7

Process flow diagram of Shamaisi aggregate plant

At this stage following factors would be considered .

surge-pile capacities stockpile capacities minimum clearances under conveyors minimum clearances around crushers and screens and how stockpiles are going to be maintained

4. Computers/Automation

In the past, aggregates plants were mechanical in nature, with plant operations such as crushing, screening and conveying functioning separately and manually. Over the past two decades, however, automation has provided a 2 to 10 time increase in productivity in many different aspects of an aggregate plant's operations. But one thing is certain: the process of making little rocks out of big ones has not changed. Automation and computer technology have simply provided the industry with the high-tech tools needed to make greater productivity possible. So the plant will be equipped with high level of latest instruments.

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5. Drilling & BLASTING

Drilling is one of the critical elements in the drilling and blasting process. The drilling phase is the most expensive in the drilling and blasting portion of production, requiring a sizable investment and upkeep. The impact of improper drilling can be felt throughout the remainder of the production cycle, such as excavating and hauling, crushing, screening and so on.

For maximum success it is essential that the mine or quarry carefully design its blasts to achieve the desired fragmentation results. These designs must be accurately implemented in the field. The blasts must be shot in a safe manner, with the area properly barricaded and all persons removed a safe distance away. Environmental affects such as ground vibration, airblast and fume production must also be controlled.

Basis for drilling & blasting

a) Daily Production = 3000 M3

b) Bench Height = 12mc) Dia Of Hole = 76mm

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DAILY DRILLING CALCULATIONS

daily production = 3,000 m3

Item Value units Calculation/explanation

volume 3,000 m3spacing 4 mburden 3 mDia of hole 76 mmproduction/LM 12 m3Total drilling LM 250 mdrill rig capacity 150 mtotal no of drills 2 no,saverage depth of hole 12 mtotal no of holes 21 no,stotal no of holes/blast 200 no,squantity produced/blast 26,400 m3

EXPLOSIVE CALCULATION

Item Value units Calculationbase charge 3.7 kgbase charge length 1.1 mcoulmn charge length 8.9 mcoulmn charge wt./m 3.65 kgscoulmn charge wt. 32 kgstot. wt. of exp/hole 36 kgsproduction/hole 132 m3specific charge 0.27412879 kgs/m3

kemulux/m3 0.0280303ANFO/m3 0.24609848 total kemulux 84.0909091 kgs

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DRILLING BLASTING COST CALCULATION

S.N ITEM UNITS NO OF UNITS S.R /UNIT COST (SR)1 kemulux kgs 84 18 SR 1,512 2 ANFO m 738 10 SR 7,383 3 SANEL no,s 21 15 SR 315 4 EL. Det DEMS no,s 5 10 SR 50

total explosive cost SR 9,260

Blasting services/ m3 SR 0.20services cost SR 600total blasting cost SR 9,860cost /m3 SR 3.29

drilling cost/m SR 10.00production/lm 11 m3drilling cost/m3 SR 0.91

total drilling + blasting cost SR 4.20

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6. Loading/Excavating/hauling

Front-end loaders or hydraulic excavators will be used to scoop blasted material from the quarry face and transfer it to a haul truck to begin the processing sequence. Excavators can further be used to pull loosely defined material directly from the quarry face.Dozers D-9 will assist the the loading process.

HEAVY EQUIPMENTS

no of units

Daily production (M3) 3,000 m3

# Equipment

1 Dozer D9 3000 NA 10 150 1500

2 Loader Cat 966 3000 3m3 10 150 1500

3 Breaker 220 NA NA NA NA NA

4 Dumper(28t) 3000 10 10 70 700

Daily Required

productionCapacity/trip or

Bucketworking

hoursproduction (m3/hour)

daily production

(m3)

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cost calculations

Daily production (M3) 3000

Equipment Cost/Hr Cost/m31 DOZER D9 2.0 300 150 10 3,000 SR 6,000 SR 2.002 LOADER 966 2.0 100 150 10 3,000 SR 2,000 SR 0.673 Breaker 220 2.0 90 20 10 200 SR 1,800 SR 9.004 DUMPER (28t) 4.3 100 70 10 3,000 SR 4,286 SR 1.43

total SR 14,086

cost/m3= SR 4.70

SR.NO

No,s of units

Prod/hour (M3)

Working hours@

10 hrs/day

Total producti

ontotal cost

(SR)

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Manpower cost

daily production(m3) 3000

SR.NO Catagory units Cost/Hr total hours total cost

1 Manager 1 55 10 5502 Engineers 1 30 10 3003 Supervisers 2 25 10 5004 Operators 8 20 10 1,6005 Survey staff 2 20 10 4006 Helpers 3 10 10 300

Total 17 160 3,650

cost/m3= SR 1.22

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7. Crushing

a) Primary crushing

Crushing shall be done with jaw crusher primarily and then followed by the con crusher for secondary crushing.

Primary jaw crusher

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b) Secondary crushing

Cone crusher will be used for secondary crushing

Secondary cone crusher

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The factors considered in the selection of a primary jaw crusher are:

a) TYPEPE1200×1500

b) type Material inlet size (mm） 1200×1500

c) Max material size(mm) 1020

d) Material outlet size (mm) 150-300

e) capacity (t/h) 400-800

f) Eccentric shaft size (r/min) 180

g) Motor power (kw) 160

h) weight (t) 100.9

i) Overall size（l×w×h）(mm) 4200×3300×3500

The factors considered in the selection of a secondary cone crusher are:

a) Type PYB 1750

b) Max. input (mm) 215

c) Adjusting range of output (mm) 25-50

d) capacity (t/h) 280-480

e) Electric motor power (kw) 160

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f) weight (T) 50.3

g) Overall dimensions (LWH)(mm) 4870*3800*4192

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Crusher cost

# Item Calculation Value Units Rate: $/hr Notes1 Expected life 20 yrs2 Expected utilization 3000 hrs per yr3 Age when sold 60000 hours

4 Purchase price $4,000,0005 Estimated residual value $600,000 15%

6 Depreciation (4-5)/1 $170,000 per year7 6/2 $56.67

8 Basis for annual insurrance AAV $2,385,0009 annual insurrance rate 2 % per year

10 annual insurrance cost 8x9 $47,700 per year11 rate to cover insurrance 10/2 $15.90

12 annuall cost for zakat $100,000 per year 2.5%

13 12/2 $33.33

14 TOTAL OWNING COST 7+11+13 $105.90

15 Fuel cost $0.27 per gal16 Fuel factor 1.7

17 Fuel consumption 80 gal per hour Look to your records18 Rate to cover fuel 15x16x17 $36.18

19 Wear parts $300,000 per set20 Factor on cost 1.02 hours

21 Expected life 1800 Look to your records22 Rate to cover wear parts 19x20/21 $170.00

23 Track chain $0 1 set

25 Expected life 0 Look to your records26 Rate to cover tracks 23x24/25 $0.00

27 Cost of a PM service $2,000

28 PM service interval 250 Fixed

29 Rate to cover PM 27/28 $8.00

30 $1,200,000 20%

31 Rate to cover repairs 30/3 $20.00

32 TOTAL OPERATING COST18+22+26+29+31 $234.18

33 14+32 $340.08

$340.08 1275.285 SR

cost/m3 = SR 1.65

Rate to cover depreciation

Rate to cover other owning

This factor covers the cost of fuel and daily oil and lubrication

Covers the cost of routine welding etc

The average cost of labor and supplies for PM

Lifetime expected repair costs

TOTAL OWNING AND OPERATING COST

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Summery of all costs

SR. ITEMS Amountunits

1 Heavy duty Equipments 4.70 S.R2 drilling blasting 4.20 S.R3 Crusher cost 1.65 S.R4 Manpower 1.22 S.R5 Miscellaneous cost 0.32 S.R6 Overheads @10% 2.26 S.R7 profit @ 20% 4.96 S.R

Total 19.31 S.R

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8. Secondary Breaking

Hydraulic breakers will be used for secondary breaking, where breakers will be tasked to reduce a pile of oversized boulders or even tackle primary breaking responsibilities.

9. Plant layout

We have planned a proper plant layout keeping in view following concept.

a) With a minimum of difficult turning angles, which are always subject to plugging and blockages.

b) All crushers and screens will be visible from operator-control area.

10.Screen plants:

The screen will be hydraulically raised inclined screens as it is more benicial than horizantel screen.

Also Twin screen plants will be used due to their ability to pre-screen material before the secondary crushing stage and allow more complete screening at the finished stage.

Many of the new material specifications can be met only with the use of two screens.

11.Product conveyors:

Radial-stacking conveyors, in lengths of 125 ft. and longer will be used instead of free standing conveyors which will allow the operator to put up large quantities of material at relatively little cost.

Because of their length, most stacking conveyors will have to be folded for travel. Hydraulic folding and lifting will allow the operator to self-erect with no chance of damage.

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Conclusions

This study provided an overview of the potential export market for Samirock aggregates and as a result offers several conclusions for consideration.

Many areas near Makkah Jeddah have abundant aggregate resources, however theconstraining factors influencing development is location, quality, quantity and regulatory processes.Although the presence of a high-quality quarry aggregate deposit in Shumaisi is a necessary condition for development, it is by no means a sufficient condition.

There are many obstacles to overcome relating to marketing, distribution and access into the highly competitive Saudi market.

The long-term trend is that aggregate prices are steadily increasing, reflecting land ownership restrictions, high costs and difficulties in obtaining regulatory approvals. These are factors that increase transportation distances, which in turn drives up the costs of delivered aggregate.

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