Integrated Rice Production Project (IRPP)

About KIG

KOHATH PROPERTY DEVELOPMENT COMPANY KOHATH MINING COMPANY KOHATH RICE COMPANY KOHATH ENERGY

Kohath Property Development Company (KPDC) is establishing itself as a major player in developing New Cities in Nigeria and other African Countries. • KPDC is the operator and

Joint Venture owner of the “Land of Honey” City development company.

• Land of Honey City is mixed use new city development occupying 1767 Hectares.

Kohath Mining Company (KMC) is focused on harnessing the earth’s natural resources to improve our lifestyle by supplying raw materials to manufacturers around the world. • KMC’s current acquisitions

are in Tantalite, Iron Ore, Coal and Gold.

• KMC is currently developing a tantalite mining field and a tantalum processing plant in Kwara State, Nigeria.

Kohath Rice Company (KRC) is strategically positioned to harness the Agricultural Potentials in Nigeria through Rice Cultivation and Processing.▪ KRC is in the process of

setting up an Integrated Rice Production Project.

▪ Estimated annual production of 31,500 MT high quality parboiled long rice.

Kohath Energy is poised to take advantage of emerging opportunities in Nigeria’s energy sector. KE’s Key Business Areas are:▪ Power generation and

transmission▪ Natural gas utilisation for

LNG production▪ Oil and gas business

consulting▪ Crude refining through set

up of modular refineries

About KRC

KRC IRPP: Project Overview

• Aimed at harnessing Nigeria’s advantage in rice production

• 3 Key components:

✓ 5 TPH state of the art rice mill

✓ 10,000 Hectare irrigated & mechanized paddy cultivation estate

✓ Development of outgrower scheme

• Project locations – Adena village, Kaiama LGA, Kwara state

• Initial annual production of 27,000 MT of export quality long grain parboiled rice

• Production to be tripled within 36 months of project commencement

• Project to be developed in 3 phases

• Production to be technology driven

• Development of agricultural production corridor with supporting infrastructure

• KRC will employ an inclusive business model to engender smallholder farmer growth

• Production to commence Q2 2015

KRC Integrated Rice Production Project

Rice milling

Paddy cultivation

Outgrower scheme

KRC IRPP: Project Execution Strategy

SPV Shareholding Structure

SPV(Integra Rice Company)

KRC(80%)

Kwara State Govt.(20%)

KRC IRPP: Project Objectives

KRC IRPP: Paddy Production Model

KRC IRPP: Our Rice Products

✓

✓

✓

✓

✓

✓

✓

✓

KRC IRPP: Project Drivers

Others:• Increase in rice import levy from 50%

to 100% by FGN• Availability of suitable land, water for

irrigation and labour

KRC IRPP: Development Partners

KRC IRPP: Financials

■■■■■ PROJECT COST ITEMS

CAPEX OPEX

Rice processing equipment Land preparation and leveling

Farm mechanization machinery Agri inputs (Seeds, fertilizer, CPPs …)

Farm buildings and structures Buy back costs

Power generation Wages and utilities

Operational vehicles Packaging materials

Office equipment and furniture Advertising and promotion

KRC IRPP: Financing Strategy

Agro Insurance (Risk Mitigation)• Agro insurance cover to be procured by SPV and Outgrower Coops • Insurance will provide cover from floods, drought, pests, fires and other man made/natural disasters• Insurance will serve as a risk mitigation strategy for equity investors and commercial banks

Debt Funding into SPV (Term Loan & Working Capital)• Debt funding to be provided by commercial banks• TERM LOAN to fund FIXED ASSETS, WORKING CAPITAL to fund OPEX

NIRSAL (Risk Mitigation)• Credit Risk Guarantees (CRG) to be procured by KRC from NIRSAL• 75% default cover on loan issued by commercial banks• Interest Drawback to be provided by NIRSAL

SPVOutgrowers Equity Funding

How can you get involved?

Contacts