PRODUCTION OF ZINC SULPHATE
Introduction
Zinc sulphate is a colorless crystalline, water-soluble chemical used to
manufacture animal feeds,
fertilizers and agricultural sprays. Zinc sulphate checks weeds and protects
against pests and diseases. It also has applications in textile dyeing and
printing, as a reagent in glues, in electro galvanizing paints, varnishes and
in the manufacture of many zinc compounds. Zinc sulphate has a good market
potential in rural areas and agriculture sector. The business idea aims at
production of 3,900 kgs of zinc sulphate per month. The revenue potential is
estimated at 500$ annually with a sales margin of 10%; the total capital
investment for the project is 11,104 dollars.
Plant Capacity
The plant in this profile has a minimum capacity of 46,800 Kgs of zinc sulphate
per annum.
Production Process
Zinc sulphate is manufactured by leaching zinc ash with dilute sulphuric acid.
The leached solution is filtered to separate un reacted zinc, which is reused
along with the next charge. The filtrate is treated with potassium permanganate
and zinc dust to precipitate impurities. It is then treated with nitro so beta-naphtha to remove cobalt. The excess of sulphuric acid is neutralized
with zinc carbonate. The solution is filtered and evaporated. After evaporation,
the thick solution is allowed to settle in a settling tank where crystals of
zinc sulphate come out of the cooler. The crystals are separated from the
mother liquor in a centrifuge and dried on belt drier. The mother liquor is
re-circulated to the evaporator. The
crystals are then packed and marketed.
Market Analysis
There is market potential for Zinc since the Textile Industry which is the main
consumer is in its infancy stage. There are no investors in this industry in
Uganda.
Scale of Investment
1. Capital Investment Requirements
|
Item |
Units |
Qty |
Unit cost |
Amount |
|
Pulverizer |
No |
1 |
286 |
286 |
|
Pumps |
No |
10 |
20 |
200 |
|
Reaction tank |
No |
1 |
140 |
140 |
|
Sulphuric acid storage |
No |
1 |
200 |
200 |
|
Discharge and mud |
No |
1 |
117 |
117 |
|
Filter Press |
No |
1 |
7,500 |
7,500 |
|
Crystallizers |
No |
1 |
40 |
40 |
|
Centrifuge |
No |
1 |
1,795 |
1,795 |
|
Chilling Plant |
No |
1 |
826 |
826 |
|
Total |
11,104 |
2. Production and Operating Expenses
|
Cost Item |
Units |
Unit |
Qty/day |
Prod |
Prod Cost/ |
|
Direct costs: |
|||||
|
Zinc Ash |
Kgs |
8 |
100 |
800 |
20,800 |
|
Sulphuric acid |
Kgs |
7 |
20 |
140 |
3,6 |
|
Packaging Materials |
Pieces |
0 |
50 |
10 |
2 |
|
Subtotal |
24,700 |
||||
|
General costs (Overheads) |
|||||
|
Labour |
400 |
||||
|
Utilities |
400 |
||||
|
Selling and Distribution |
200 |
||||
|
Administrative expenses |
150 |
||||
|
Shelter |
400 |
||||
|
Depreciation (Asset write off) Expenses |
231 |
||||
|
Sub-total |
1,781 |
||||
|
Total Operating Costs |
26,481 |
Production is assumed for 312 days per year.
Depreciation assumes 4 year life of assets written off at 25% per year for all
assets.
A production Month is assumed to have 26 work days.
3. Project Product Costs and Price
Structure in US$
|
Item |
Qty |
Qty/yr |
Unit |
Prod/yr |
Unit |
Total/revenue |
|
Zinc |
150 |
46,800 |
7 |
317,776 |
8 |
351,000 |
4. Profitability Analysis Table in US$
|
Profitability Item |
Per day |
Per Month |
Per Year |
|
Revenue |
1,125 |
29,250 |
351,000 |
|
Less: Production and Operating Costs |
1,019 |
26,481 |
317,776 |
|
Profit |
106 |
2,769 |
33,224 |