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    Company Letterhead Template

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    Katlego Hector
    Ndinashoni Mining is looking for a joint venture partner to invest in their mining project. They have a mining permit but need to pay a rehabilitation fee of R1,587,000. They are proposing a 70%/30% joint venture where the investor contributes 70% of capital and the permit holder contributes 30%. The joint venture would facilitate investment and marketing plans to help the project's growth. Key considerations for the financial model include production levels, operating costs, taxes, asset valuation, commodity prices, and objectives like expanding operations and increasing production and sales. Risks include conflicts that could impact negotiations and compliance with legislative requirements.

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    Company Letterhead Template

    Uploaded by

    Katlego Hector
    151 views6 pages
    Ndinashoni Mining is looking for a joint venture partner to invest in their mining project. They have a mining permit but need to pay a rehabilitation fee of R1,587,000. They are proposing a 70%/30% joint venture where the investor contributes 70% of capital and the permit holder contributes 30%. The joint venture would facilitate investment and marketing plans to help the project's growth. Key considerations for the financial model include production levels, operating costs, taxes, asset valuation, commodity prices, and objectives like expanding operations and increasing production and sales. Risks include conflicts that could impact negotiations and compliance with legislative requirements.

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    Ndinashoni Mining is looking for a joint venture partner to invest in their mining project. They have a mining permit but need to pay a rehabilitation fee of R1,587,000. They are proposing a 70%/30% joint venture where the investor contributes 70% of capital and the permit holder contributes 30%. The joint venture would facilitate investment and marketing plans to help the project's growth. Key considerations for the financial model include production levels, operating costs, taxes, asset valuation, commodity prices, and objectives like expanding operations and increasing production and sales. Risks include conflicts that could impact negotiations and compliance with legislative requirements.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    151 views6 pages

    Company Letterhead Template

    Uploaded by

    Katlego Hector
    Ndinashoni Mining is looking for a joint venture partner to invest in their mining project. They have a mining permit but need to pay a rehabilitation fee of R1,587,000. They are proposing a 70%/30% joint venture where the investor contributes 70% of capital and the permit holder contributes 30%. The joint venture would facilitate investment and marketing plans to help the project's growth. Key considerations for the financial model include production levels, operating costs, taxes, asset valuation, commodity prices, and objectives like expanding operations and increasing production and sales. Risks include conflicts that could impact negotiations and compliance with legislative requirements.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 6

    PRIVATE AND CONFIDENTIAL

    SEGOKGO BUSINESS
    CONSULTANTS
    Reg: 2008/041886/23
    Email: [email protected]

    Ndinashoni Mining Date: 28-June-2021

    Burgersfort 1129 Driekop


    +27 65 707 8011
    [email protected]

    PROPOSAL FOR JOINT VENTURE PARTNERSHIP IN NDINASHONI


    MINING
    NDINASHONI MINING is a Company duly incorporated in accordance with the
    company laws of South Africa

    Dear Sir/Madam

    Please note that the above mentioned subject has a reference for your speedy
    perusal, assessment, consideration and response

    Ndinashoni Mining Project is registered with the Department of Mineral and Energy
    DMRE. The Company has a Mining permit approved on the farm
    NOOITGEDACHT 300JS of the Emalahleni magisterial region.

    The Company has applied for a mining permit but due to newly established laws
    within the Department of Mineral and Energy,the Department has requested that the
    permit holder pays a rehabilitation fee of R1 587 000.00 after reviewing the
    company’s BAR(Basic Assessment Report).

    It is due to this reason that the company is looking for a Joint Venture Business to
    Business partnership that will inject capital into this joint venture. It should be noted
    that there is a lot of economic development, growth and sustainability that may
    come with partnering with NDINASHONI MINING PTY LTD

    Page 1 of 6
    PRIVATE AND CONFIDENTIAL

    In order to facilitate the legislative and financial growth of the business there is a
    need for an adequate investment partner. The investment agreement and plan is
    required to facilitate the growth of the business and develop long – term contracts
    with target markets. New market opportunities need to be developed and potential
    strategic business alliances need to be investigated for the business to fully capitalize
    on available market opportunities. In order to plan the realization of these objectives
    it is therefore necessary that an adequate investment plan that is accompanied by
    equally good marketing plan and strategies be formulated. The deliverable would be
    to secure the investment partner to invest.

    Proposed scope of the project

    Facilitate the formulation of an investment and marketing plans – Ndinashoni Mining


    Pty Ltd hereby proposes the following if it happens that we agree on all the
    prescribed terms and conditions:

    (a) 70% (potential investor) – 30% (permit holder) Joint Venture partnership ,
    10% will be shared equally amongst the facilitators-company
    (b) That all due accounts be paid (e.g. legislative tariffs like tax , rates & taxes
    like water & electricity, etc)
     TRUST business entity – because it’s the most safe and convenient
    business establishment as follows:
     Must have no liability/ies.
     Must have founder member/s
     Must have board of Trustees constituted of alternate or uneven
    number of members that must be inclusive of independent
    (professional) member/s.

     Must have beneficiaries, and

    Subsidiary company/ies representative/s where applicable

     In consideration of the above structural arrangement, the Board of


    Trustees, beneficiaries and subsidiary company/ies representatives
    must provide a written consent for this investment proposal to
    proceed.

    Page 2 of 6
    PRIVATE AND CONFIDENTIAL

    Financial model considerations

     Project specific variables

    (a) Annual and cumulative production levels.

    • Tonnages of Coal Ore and waste extracted from the Ore – body/belt.

    • Dilution and recovery factors during milling and processing.

    (b) Operating costs

    • Technical factors considered by engineers.


    • Labour relations.
    • Environmental remediation and rehabilitation.
    • Community costs.
    • Fuel and energy.

    Calculations:

    - Cost per ton of Coal extracted.


    - Cost of material milled.
    - Cost of final product.

    • Taxes: Property & infrastructure, permit holding & surface rents.


    - Cost inflation.
    • 2 -5% annually to inflate overall costs.
    - Recovery of pre-paid taxes, shareholders’ loans or advance of
    funds.
    • Royalties or advance payment of income tax.

    Page 3 of 6
    PRIVATE AND CONFIDENTIAL

    2. Financial variables

    • Accounting variables – for depreciation and amortization.


    • Valuation of assets – fair market value, tax over/expropriation of assets.
    • Sunk costs – amount spent on exploration which is carried over to the
    accounts of exploration operations and imputation of interests charges
    of these amounts.

    3. External variables

    • International price for the mineral commodity – beyond control of either


    party.
    • Price of commodity to be mined during the life cycle of the project – to
    calculate gross revenues.
    • Predicting the long-term price of mineral commodity – a single price for
    the principal and secondary mineral commodities to be produced is
    assumed and carried through the life cycle of the production operations .

    4. Objectives

    The objectives of the proposed investment project are to:

    • Organize the business structure – organogram.


    • Expand the present business activities.
    • Increase production and sales.
    • Improve the impact of marketing activities.
    • Nurture a greater marketing orientation.
    • Realize the growth vision.
    • Formulate appropriate management, operations and marketing
    strategies.
    • Increase market awareness.
    • Improve the impact of marketing strategies.

    Page 4 of 6
    PRIVATE AND CONFIDENTIAL

    5. Current reality and risk assessment

    There is also a major threat of operations factionalism, personal interests and conflicts
    that may negatively impact on the proposed investment.negotiations,legislative
    requirements compliance and administrative processes. As a result thereof, you will be
    provided a comprehensive planning,on-mitigation-strategies,(administrative,
    documentation, personnel etc) that will be applied to make this proposal for
    .investment a success story

    Closing Remarks
    Thank you for affording us an opportunity to present properly our project.
    We are looking forward to hearing from you in time. Your uninterrupted response will be highly
    appreciated

    This proposal letter was prepared by Mr KH Makgopa. A consulting agent on Behalf of Ndinashoni
    Mining and Segokgo Business Consultants Secretariat.

    Kind Regards

    ______________

    Page 5 of 6
    PRIVATE AND CONFIDENTIAL

    Page 6 of 6

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