Mozal

Executive summary The Mozal d stinging as devised by the Sponsors pass on pee a first gear cost extremely competitive aluminum smelter in Mozambique. Mozambique, a short emerging commercialize surface ara recoering from a accomplished 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 closing whether to invest in the put up. They also have to persuade banks and nurture finance insitutions - including IFC that the project has been well structured with viable monetary and scotch retrieve, satisfactory to warrant their enthusiastic participation in the project. An analysis of the project cash flows and measures taken to mitigate the central 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 return hurdl e thereby warranting investment by the Sponsors and alterers. 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. synopsis of facts The Mozal Project, a low cost aluminum production set up to be localise up in Mozambique, is a give voice venture amongst Alusaf and the Industrial Development Corporation (IDC) (the Sponsors) who are the legality investors in the project and will each provide $125m deserving of equity into the project. Major inputs needed to produce aluminum are alumina, electricity, confinement and other raw materials. The sponsors have secured long endpoint 25 year contracts for supply of Alumina and Electricity and raw materials on prices linked to LME aluminum prices. Labour will for the most part be sourced from the low cost Moza! mbique workforce. Based on this plan, the breakeven...If you fate to enamor a full essay, order it on our website: BestEssayCheap.com

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