The project is to produce Tin ingots by smelting cassiterite concentrates.
Cassiterite concentrate are processed tin containing ores. The ore are mined in Rwanda by artisanal mining groups who are part of a co-operation that market the ore. Tin is mainly refined in Asia and there is no commercial refining and smelting business in the UK to provide this service.
The co-op has requested I develop a network for the tin to be smelted, marketed and sold.
I am Janghas Khan aged 36 married and a father. My academic history is I attended Cleveland Primary were I passed my 11 +. From there I attended Seven Kings High School for 3 years. Family moved to Pakistan due to grandfather being un well. I studied in Pakistan in an English Medium Private School were I completed my Metric exams (equivalent to O levels). After grandfather’s death we returned back to The UK and I attended Redbridge College and completed my A levels in maths, physics and IT. I attended UEL and studied Civil Engineering for 2 years. I left university to work for the family business which was a poultry wholesale distributor. I carried on this work as the sales manager for 7 years when my elder brother passed away, I fell in to depression and did nothing for a while. I started a new business in 2012 which I wholesale and distribute onions and potatoes across London this continues today.
About the Business
Rwanda has been given bad press due to DR Congo illegal conflict mineral operations being conducted by armed groups. Legitimate Rwanda artisan miners are being deprived of achieving market prices for the cassiterite ores they mine. I have agreed with miners that I will help them achieve the best price for their products.
I have pondered on the thought of selling the cassiterite ore to refining companies but due to the product being Rwandan the price being received does not seem fair. Thus I have decided to smelt the ore in to tin and sell a finish product to end users.
A trial smelting run will take place for 500 kg tin concentrate to work out a baseline cost. On paper all the costs have been worked out. If the trial is successful I would require investment to acquire the necessary equipment to smelt 2000 kg per week. The processed tin would be sold in the UK market to metal traders and the income generated would be reinvested to take the smelting up to 7000 kg per week.
The funding required will pay for all registrations and licences. This amount is approximately $5000 which is paid to iTSCi program. The iTSCi Programme – assisting companies with due diligence and responsible sourcing of minerals from high risk areas.
An investment of £15,000 is required for machinery - which includes furnace, extractor, and others. This also covers rent for premises and deposits.
The purchasing of the cassiterite ore, transport and processing cost is around £7,500.00
Initially I plan to process and smelt 500 kg ore. The cost of purchasing the ore and processing will be about £4800.00 and the sell price for this would be £5300.00 This indicates I can potentially make a profit of £1.00 per kg. The outcome of this is because I will process a small quantity and the product is flown over rather than sea transport, the cost occured is high.
In order to reduce cost shipping via container is recommend but this would only be for quantities over 7000 kg. On paper processing cost for 7000kg would be £62,000.00, where this should sell for £72,000.00 this works out as Gross profit of £1.42 / kg.
Why you should help in Funding.
The business will be a London based operation and employing locals to produce the tin metal. Trainning and advise will be given to employees helping them achieve the know how of smelting metals.
The profits generated will help Rwandan miners achieve better mining conditions by investing in better equipment like , diggers, chrushers, panners etc. By us paying miners better rates for there mined products we will be able to improve their lives. Promoting environemental practices and making mining conditions better for the local co-operative.