росток росток

Directions of investment activity

 

REFERENCE INFORMATION on the ROSTOK GROUP of COMPANIES

Rostok Group of Companies belongs, according to the Russian standards, to the category of "middle business" - it is a young investment group existing from 1997 and actives in the field of Research and Development, industrial equipment production, agricultural products processing, mining and metallurgy, tourism  projects and site development projects. The Group's main specialization today is organizational work aimed at implementing "turnkey" investment projects by means of attracting and coordinating specialized contractors from the fields of finance, design, customer-specified, construction, technical supervising, marketing and sales. The Group provides project financing by means of debt instruments, corporate financing and own funds.

The total value of the Group own assets is $150mln. The total area of commercial property owned by the Group is 50,000 square meters. 

Current projects: 

DEVELOPMENT OF DISTRIBUTION CENTERS

PROJECT for Exploration, Mining, and Production of Potassium Fertilizers

  

DEVELOPMENT OF DISTRIBUTION CENTERS

The product of the project is a distribution warehouse center (DWC), adapted to provide complex logistics services, including storage, sorting and picking, loading and unloading, transportation of products predominantly foodstuff oriented, located in a convenient place for the transportation to Moscow-based shops. 

The main object of business is the property warehouse complex of Businovo ITC JSC  located at the address: 2 Businovskaya Gorka Str., in the north of Moscow between the Leningradskoye and Dmitrovskoye Highway, 300 meters from the Moscow Ring Road. 

Activity profile of  until 2017 includes a rental business with a fragmented provision of logistics services. Since 2018, only rental business, mainly with the lease of large blocks of premises. The functional use of the warehouse complex by consumers-lessees presupposes a multi-temperature distribution center predominantly with a foodstuff orientation. High demand for such functions in the north of Moscow.   

The area of the land plot is 6.2 hectares. The warehouse complex consists of the capital reinforced concrete structures build in 1991. The area of existing buildings is 59.4 thousand square meters. Including, the main production building MPB of 49.6 thousand square meters, administrative and household building AHB of 7.0 thousand square meters, other buildings for demolishing of 2.8 thousand square meters, 40 equipped docks. The estimated value of land and property is 4-4.5 billion rubles.

 

At present, the complex is being reconstructed by extension and superstructure, with an increase of areas for up to 111.3 thousand sq. m., including MPB with an additional third floor and renovated basement of 62.4 thousand square meters, extension of MPB of 41,3 thousand square meters, AHB of 7,6 thousand square meters, and 84 equipped docks. The estimated value after the reconstruction will be about 6 billion rubles. The reconstruction was financed by Sberbank of Moscow following the project financing limit of 0.999 billion rubles. Operating limits for electricity (8.4 mW), gas (6 million cubic meters per year), industrial water supply, heating and sewage. 

 

PROJECT for Exploration, Mining, and Production of Potassium Fertilizers

Project Rationale – The export-oriented project for exploration, mining, and production of potassium fertilizers, i.e. potassium sulfate (SOP), with a nominal output of 1.0 mln. tons of finished products per annum, based on a deposit with the State resource appraisal of over 3 bln. tons of ore. 

Raw Materials Base - a deposit with the State resource appraisal of over 3 bln. tons of ore, covering the North Krasnoborsky site and the East Krasnoborsky site of polyhalite ore deposit with a total area of  30 sq. km, situated in the Polessky District of Kaliningrad Region of the Russian Federation; approved reserves -64 mln. tons of K2O under categories С1, С2; estimated reserves about 250 mln. tons. 

Current State of the Project – start-up.

Currently Existing Assets of the Project -  the scoping level of elaboration, including:

 

  • the approved reserves, a pioneering certificate and a license for prospecting and production from the field with the approved reserves of 64 mln. tons of K2O,
  • a package of performed exploration work with the drilling, seismic surveys, geophysics, and their interpretation into a 3-D model, and reserves estimation according to JORC, 
  • a developed experimental technology for processing ore into the finished product,
  • a business plan with the calculated capex, opex,  cash flow, and project efficiency indicators.

 

Main Product of the Project - potassium sulfate, it falls into the group of potassium fertilizers constituting a traditional and massively consumed basis for agricultural technologies. Auxiliary products – magnesium sulfate and calcium sulfate. 

Product Details. Among the potassium fertilizers group, this fertilizer of premium class enhances significantly the effectiveness of agricultural industry, especially for citrus cultures, coffee, plants of potato family, and tobacco cultures. It contains 50% K2O and is chlorine-free that is generally useful. The current world consumption of the SOP is 6 mln. tons annually (as against the consumption of KCl -60 mln. tons annually). It is relatively new product, the consumption and production volumes of which are rateably growing all over the world.   The potassium sulfate is an expensive and efficient product which became in-demand only in the recent decade of intensive technologies in the agriculture industry. It is at US$ 550 a ton compared with US$ 200- 300 a ton of potassium chloride. Regarding this project, the wholesale customers from China, India, Pakistan, and Brazil have already expressed their interest in this Project.

Juridical Legalization -  licenses for prospecting and surveying KLG No. 02398 ТП dated 28.06.2013 and KLG No. 02478 ТП dated 29.05.2015 by the Minutes of the Meeting No. 15-18/КО of 26.06.2018 of  the Territorial Committee for Natural Reserves Sevzapnedra of the Ministry of Natural Resources of the Russian Federation; the К2О reserves for categories С1+С2 are estimated and approved by the National Reserves Committee of the Federal Subsoil Management Agency – 64 mln. tons at the К2Оcut-off grade in ore – 7.61% and more, the average formation thickness is 60m; and the MgO reserves of categories С1+С2 - 29 mln. tones. TEO of provisional conditions has been approved by the Minutes of the Meeting No. 14-18/КО dated 26.06.2018 of  the Territorial Committee for Natural Reserves Sevzapnedra of the Ministry of Natural Resources of the Russian Federation. The pioneering certificate for the polyhalite ore deposit containing potassium oxide, and magnesium oxide.  

Competitive Advantages:

 

  • situated in a special economic zone in Kaliningrad Region (preferential tax treatment);
  • has a pronounced competitive advantage in logistics owing to its proximity to the sea and a sea port;
  • situated in a region with well-established infrastructure and generally provided with energy and transport resources;
  • environmentally safe technology with waste backfill has been developed.

 

Potential for Development:

 

  • extension of project useful products to be recovered from the main production wastes is examined:
  • magnesium sulfate, for which a stable demand of about 0.3 mln. tons annually is confirmed during the participation in the FertilizerSHOW 2018 specialized international exhibition held in Shanghai in March this year,
  • gypsum building plaster, a demand for which is declared on the level of  0.5 mln. tons annually;
  • the product line can be extended  owing to arrangement of a NPKS  production (a combination of nitrogen, phosphorous and potash SOP fertilizers that are always in demand on the market making it possible to extend the SOP production by 0.1-0.2 mln. tons annually). 
  • there are economically reasonable possibilities to arrange its own sea terminal (by acquisition of a part of the bank in a deep-water area of the shore and its development).

 


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