Applied Clay Science 15 Ž1999.

325–336

The Egyptian kaolin: an outlook in the view of the

new climate of investment
)
Nagui A. Abdel-Khalek
Central Metallurgical Research and DeÕelopment Institute, CMRDI, P.O. Box 87 Helwan, Cairo,
Egypt
Received 4 November 1998; accepted 20 April 1999

Abstract

Egypt has large reserves of kaolin in many localities in Sinai, Red Sea coast and Kalabsha near
Aswan. These kaolins can satisfy the local demand for filler, paper and ceramic industries 10
times for at least 50 years, in comparison to the current demand. However, the Egyptian kaolin is
hard and massive. It is also low grade so that it needs beneficiation to be suitable for paper and
ceramic industries, which import their needs at the present time. Beneficiation of the Egyptian
kaolin from different localities indicated their technical viability for ceramic production and as
paper filler. In the meantime, the Egyptian government has created a new healthy climate to
encourage investment in Egypt. For example, the government provided many facilities to investors
in the new cities, increased the period of free taxes to 10–20 years Ždepending on the project site.
and reduced the interest of borrowing money from banks. All these facilities, among others, will
have a positive impact on the economic viability of projects. This paper evaluates the situation of
Egyptian kaolins, their methods of beneficiation and the domestic market. A summary for the
economic pre-feasibility study was presented. The new laws of investment make such economic
pre-feasibility more profitable in terms of return on investment ŽROI. and pay back period ŽPBP..
q 1999 Elsevier Science B.V. All rights reserved.

Keywords: beneficiation; ceramic; demand and market; filler; investment; kaolin; Egypt; paper

1. Introduction
Kaolin has many industrial applications and new ones are still being discov-
ered. It is used, among others, in paper, paint, rubber, plastics and ceramics

)
Department of Materials Science and Engineering, Engineering Research Center for Particle
Science and Technology, University of Florida, 114 Rhines Hall, P.O. Box 116400, Gainesville,
FL 32611, USA. E-mail: nagui@ufl.edu

0169-1317r99r$ - see front matter q 1999 Elsevier Science B.V. All rights reserved.
PII: S 0 1 6 9 - 1 3 1 7 Ž 9 9 . 0 0 0 2 6 - 5
326 N.A. Abdel-Khalekr Applied Clay Science 15 (1999) 325–336

Table 1
Typical specification for paper filler and coating kaolins
Filler Coating
Raw ISO brightness, % 76–82 81.5–90.5
TAPPI brightness, % 80–86 86–92
Yellowness, % 5.7–8 4–6.5
Particle size, %- 2 m 50–70 80–100
Residue on 325 mesh, max. % 0.4 0.01
Surface area, m2 rg 12–22 13–22
Viscosity, 70% solids, Brookfield Cps, 20 rpm, mPas – 100–700
pH 6.0–7.5 6.0–7.5

industries ŽMurray, 1963; Pickering and Murray, 1994. . In paper industry kaolin
is used as a filler or as a coating agent to smooth the surface of the paper and
improve brightness, opacity, gloss and ink receptivity. Coating kaolins are
generally much finer Žtypically ) 75% y2 m . than filler grades Ž) 30% y2
m .. Table 1 shows the physical properties of typical filler and coating grade
kaolins ŽKendall, 1995.. Also, the coloring impurities in the paper coating kaolin
should be within the limits of 0.5–1.8% Fe 2 O 3 and 0.04–1.6% TiO 2 Ž Pickering
and Murray, 1994. .
Historically, kaolin was first used in ceramics and this is perhaps still the best
known application. The most important properties for this use are plasticity,
strength, and fired color. The particle size of y2 m in the ceramic kaolin is
between 55 and 65% while the Fe 2 O 3 content is less than 0.5% Ž Pickering and
Murray, 1994; Table 2..
Kaolin is also used in the plastic industry. Attempts to summarize specifica-
tions of kaolin for plastic industry would accomplish little since there are
perhaps 40 grades of kaolin each of which is used for a specific application
ŽPickering and Murray, 1994. . Kaolin is generally incorporated in hydrous or
calcined forms, and its largest market is as a filler in PVC cable coatings
ŽKendall, 1995. .
This paper discusses the situation of kaolin in Egypt, its localities, mineral-
ogy, demand and market, beneficiation and a summary for pre-feasibility studies
in view of the present laws of investment.

Table 2
Ceramic kaolin specifications
Unfired brightness Particle size, %y2m Methylene blue or %Fe 2 O 3
Hi strength 78–83 55–65 9–12 meq
Sanitary ware 75–80 )60 ) 0.5%
Fiber glass none ) 70 ) 0.5%
 N.A. Abdel-Khalekr Applied Clay Science 15 (1999) 325–336 327

2. Demand and market of kaolin in Egypt

The Egyptian industry uses kaolin mainly in the following sectors:

1. Tiles and ceramics
2. Cement, alumino-silicate and alum
3. Sanitary and porcelain
4. Paper
The annual production of Egyptian kaolin used in ceramic products in 1990
was 441,020 tonnes ŽTable 3. . In the same year, the annual production of kaolin
for paper, white cement and alum industries was found to be 128,000, 300,000
and 150,000 tonnes, respectively Ž Youssef, 1994. .
Table 4 depicts the annual consumption of both local and imported kaolin
ores in 1990 to cover the above mentioned figures of end products. In ceramics
and paper production, the imported kaolins represent about 26.83% of the kaolin
consumption in these industries. This does not mean that the local kaolin, which
supplies the industry with about 73.17% of its needs, satisfy the required
specifications for ceramics and paper production. This is because the produced
ceramics or paper are of low quality, due to the application of Egyptian kaolin
without previous beneficiation to remove its associated gangue minerals. This
also results in producing a large quantity of waste materials of ceramics and
paper because they are out of specification Ž Youssef, 1994. .
This clearly shows the vital role of upgrading the Egyptian kaolin to meet the
specification of ceramics and paper industries to increase its economical value,
reducing the quantity of waste or refused products and improving the economy
of production of such products Ž Youssef, 1994. .
Tables 5 and 6 show the statistical data for the development in the consump-
tion of kaolin during the period 1990–1996 and the forecast of the annual
demand on these ores till the year 2000, respectively. From a total of about
102,235 tonnes in 1990, it went down to about 98,000 tonnes in 1996 of which
20.63% is imported for the paper industry. The imported kaolin increased to
about 55,689 tonnes in 1996 with a value of about US$10,632,900 as shown in
Table 7, which depicts the quantity of imported kaolin in 1996. It is clear that
United Kingdom is the main exporting country Ž about 72.9%. of high grade

Table 3
Annual production of ceramic products in Egypt
Production Quantity, tonnes
Sanitary 32,520
Tiles 150,000
Porcelain 5500
Alumino-silicates 253,000
Total 441,020
328 N.A. Abdel-Khalekr Applied Clay Science 15 (1999) 325–336

Table 4
Annual consumption of both local and imported kaolin ore
Production Quantity, tonnes
Tiles and ceramics 73,700
Cement, alumino-silicate and alum 307,000
Sanitary and porcelain 9529
Paper 17,500

kaolin to Egypt ŽCAPMS, 1997. . This is followed by Turkey Ž; 10.86%. and

Japan Ž; 9.94%.. The other countries exported about 6.3% of high grade kaolin
to Egypt ŽCAPMS, 1997; Table 7. . This again indicates the importance of
upgrading the Egyptian kaolin to meet the required specification of fine ceram-
ics and paper coating. The total demand on kaolin in the year 2000 will be about
184,000 tonnes of which 155,000 tonnes will be utilized in ceramics and
porcelain production and the rest in paper industry Ž Table 6..
On the other hand, Egypt imports the master batch, which contains filler such
as kaolin, of the compounding stage needed for plastic industry. Statistical data
of the plastic industry indicated that Egypt imported about 6,786,900 and
5,569,400 units of plastic in 1994 and 1995, with values of about US$30,044,500
and US$24,402,000, respectively Ž IPRE, 1996. . Most of these units are machin-
ery for working rubber or plastics Ž 32.10–38.6%. , plastic tubes, pipes, hoses and
fittings Ž29.6–40.5%. as well as articles for the conveyance or packing of goods
Ž12.3–13.2%. . In the meantime, the number of exported units in 1994 and 1995
have values of US$10,035,900 and US$639,800, respectively, the majority of
them as baths, shower-baths, wash-basins etc. Ž88.4–91.2%; Table 8. . Kaolin
used as filler in, the master batch of the compounding of, such plastic products
was estimated to be in the range 10,000–20,000 tonnesryear.

3. Kaolin localities in Egypt

Kaolin is present in three main areas in Egypt namely, Sinai, Red Sea coast,
and Aswan ŽKalabsha. . Sinai Manganese is the main producer of kaolins from

Table 5
Annual consumption of kaolin in ceramics and paper industries
Application 1990 1991 1992 1993 1994 1995 1996
Ceramic 84,735 75,661 77,723 126,527 138,470 141,425 143,045
Paper 17,500 18,700 20,200 17,880 19,500 20,350 20,350
Total 102,035 94,361 97,923 144,407 157,970 161,775 163,395
 N.A. Abdel-Khalekr Applied Clay Science 15 (1999) 325–336 329

Table 6
Annual forecast of the demand of kaolin in ceramics and paper industries
Application 1997 1998 1999 2000
Ceramic 145,645 149,045 152,445 154,945
Paper 20,700 21,850 22,600 29,000
Total 166,345 170,895 175,045 183,945

the Nubia Succession of Sinai at Mussaba Salama, El-Tih, Farsh El-Ghozlan and
other localities with total reserves of about 100 million tonnes of a grade ranging
from 26% to 35% Al 2 O 3. The company applies selective mining followed by
crushing and size separation only but no sophisticated beneficiation schemes
were adopted for treatment of ores ŽYoussef, 1994. .
Meanwhile, the GYMCO is the producer of kaolin from the Kalabsha region.
The Wadi Kalabsha kaolin Ž17 million tonnes. is situated at about 150 km of
west of Aswan which is easily accessible by an asphaltic road. The area is
bordered by longitudes 32821X 00Y and 32822X 30Y E, and latitudes 23826X 30Y and
23824X 30Y N. The Wadi Kalabsha kaolin deposit is divided into two main types
depending on textural properties. These are, from top to bottom:
A — Kaolin enclosed within the upper sandstone member
-The non-pisolitic Žplastic. kaolin
-The pisolitic kaolin with coarse or granular quartz grains
B — The Wadi Kalabsha kaolin deposit
-The pisolitic kaolin
-The nodular concretionary kaolin
The two types of Kalabsha kaolin are represented by well developed and
more persistent kaolin beds forming the main bulk of the deposit in this area
ŽYoussef, 1994. .

4. Mineralogy of Egyptian kaolin

Microscopic analysis of Egyptian kaolins indicates that they contain frag-
ments, white to yellowish brown in color, characterized by the presence of

Table 7
Importation of kaolin to Egypt in 1996
Country Quantity, tonnes Value, US$
United Kingdom 40,676.9 7,390,600
Turkey 6065.4 626,900
Japan 5548.5 1,970,100
Others 3398.1 645,300
Total 55,688.9 10,632,900
330 N.A. Abdel-Khalekr Applied Clay Science 15 (1999) 325–336

Table 8
Trade statistics on the Egyptian plastic industry
% Units of plastics
1994 1995
Import Export Import Export
Machinery for working rubber or plastics 38.55 0.28 32.10 0.56
Machinery for preparing, tanning 4.09 0.96 3.01 0.66
or working hides
Floor, wall or ceiling coverings of plastics 13.93 4.45 3.10 0.97
Plastics tubes, pipes, hoses and fittings 29.57 2.02 40.52 3.52
Baths, shower-baths, wash-basins, 1.54 91.17 8.07 88.40
bidets, lavatory
Articles for the conveyance 12.32 1.12 13.20 5.89
or packing of goods
Total number of plastic units 6,786,900 4,781,800 5,569,400 4,124,800
Total value in US$ 30,044,500 10,035,900 24,402,000 10,639,800

plastic and colloidal pisolites ore. The colloidal pisolites forming nodules or
concreation of different shapes, colors and sizes. Such colloidal pisolites are
cemented with microcrystalline kaolinite and amorphous material. Variable
amounts of quartz grains, especially in Red Sea kaolins, are encountered inside
the pisolites as well as in the ground mass. Carbonaceous material and some-
times gypsum fragments are encountered. Accessory minerals include subangu-
lar to subrounded zircon, rutile and anatase grains. Tourmaline is rarely de-
tected. Different degrees of ferrugination are observed in most samples. The
presence of TiO 2 minerals is confirmed, with varying degrees, in most samples
of different localities ŽYoussef, 1994; Youssef et al., 1997. .

5. Beneficiation of Egyptian kaolin

Sophisticated beneficiation flowsheets are well established, particularly in

Georgia, USA and Cornwall, UK, to reach the required specification for good
quality kaolin concentrates. However, the Egyptian kaolin is not subjected to
any beneficiation process and the Egyptian companies apply selective mining
followed by, in some localities, crushing and size reduction only. Such low
quality kaolin is used mainly in refractory and pottery production because its
quality does not satisfy the requirements for the whiteware and paper industries
ŽYoussef, 1993, 1994, 1996..
On the other hand, extensive studies on upgrading of Egyptian kaolin from
different localities have been conducted both on bench and pilot plant scale
ŽYoussef, 1993, 1994, 1996. . These studies showed that the Egyptian kaolin is
hard and massive and it needs aggressive attrition scrubbing, after primary
 N.A. Abdel-Khalekr Applied Clay Science 15 (1999) 325–336 331

crushing, to disintegrate the matrix and separate the coarse gangue minerals.
Therefore, the suggested pilot plant flowsheet is based on using the ‘‘Denver’’
attrition scrubber as a blunger at the head of the flowsheet. The degritted kaolin
ore is screened, the oversize Žgrit. evaluated for tile manufacture and the
undersize is pumped to a spiral classifier. Separation of intermediate size quartz
and feldspar occurs in this step and the classifier underflow product, is either
dumped or recycled to the attrition scrubber depending on its quality. Micro-
scopic and XRD analyses of this underflow fraction show that gypsum frag-
ments in the q0.25 mm fraction whereas angular to subangular quartz grains
are abundant in the size fraction over 0.16 mm. Angular to subangular rutile
grains are identified in the size fraction q0.074 mm.
The classifier overflow product is then delivered to the 3Y hydrocyclone for
further classification. X-ray diffraction analysis of both hydrocyclone products
confirms the accumulation of quartz on the underflow cut and the enrichment of
kaolin in the overflow product. The hydrocyclone overflow andror underflow
product is beneficiated by applying high gradient magnetic separation to mini-
mize its coloring ingredients Žmainly oxides of iron and titanium., to meet the
specifications of ceramics and paper industry. The final concentrates obtained
from these pilot plant operations were evaluated in the production lines of some
Egyptian ceramic and paper companies. The results indicated that such kaolin
concentrates are suitable for the ceramic industry and as a filler in paper making.
Table 9 shows the chemical analysis of such kaolin concentrates. However, the
still high TiO 2 content of Sinai and Red Sea kaolin hindered their application in
fine ceramics and in paper coating Ž Youssef, 1993, 1994, 1996. .
For this reason, some trials were performed to refine these concentrates by
reducing their TiO 2 contents using the different techniques of flotation such as
froth flotation, carrier flotation and column flotation on the El-Tih kaolin. The
tests were performed using sodium silicate as a depressant and oleic acid as a
collector. The froth flotation process produced a concentrate Ž; 84.7 wt.%. of
0.68% TiO 2 with a whiteness of 78 while the carrier flotation technique, using
limestone as a carrier, gave a concentrate Ž; 76.1 wt.%. of 0.61% TiO 2 and
whiteness of 90 ŽAbdel-Khalek et al., 1996, 1998.. However, the column

Table 9
Chemical analysis of kaolin concentrates
Locality Al 2 O 3 , % SiO 2 , % Fe 2 O 3 , % TiO 2 , % Kaolinite, %
Mussaba ŽSinai. 37.01 45.06 1.09 1.38 97.25
El-Tih ŽSinai. 37.30 39.90 0.78 1.27 97.10
F.El-Gozlan ŽSinai. 35.21 44.43 0.92 1.38 92.43
El-Deheissa ŽSinai. 34.1 48.05 0.81 1.99 89.54
Red Sea I 33.03 49.15 0.52 2.04 86.80
Red Sea II 35.5 45.11 1.18 2.46 93.28
Kalabsha ŽAswan. 34.13 44.08 0.30 0.59 89.68
332 N.A. Abdel-Khalekr Applied Clay Science 15 (1999) 325–336

Table 10
Refining of kaolin by different flotation techniques
Flotation process Wt.% Al 2 O 3 , % SiO 2 , % TiO 2 , % Fe 2 O 3 , % LOI, % Whiteness
Froth 84.75 37.22 46.95 0.68 0.56 13.17 78
Carrier 76.06 37.22 46.68 0.61 0.51 13.68 90
Column 84.50 37.40 46.84 0.38 0.49 13.55 91.5

flotation process gave the best concentrate Ž; 84.5 wt.%. of only 0.38% TiO 2
and degree of whiteness of 91.5 ŽHassan, 1997. , Table 10.
Meanwhile, selective flocculation of the Red Sea kaolin pre-concentrate for
minimizing its TiO 2 content was, successfully, conducted. A selective flocculent
of polyacrylamide type Ž A95. was used at pH 6 in presence of 10y4 M MgSO4
after dispersion of the pulp by either 2400 grt sodium silicate or 1020 grt
sodium hexametaphosphate. Cleaner concentrates of about 78.3–80.3 wt.% of
the feed and assaying only 0.52% TiO 2 were obtained, that satisfy the require-
ments of the local paper coating industry and fine ceramic production Ž Abd El
Rahman, 1996..

6. Pre-feasibility study of beneficiation of Egyptian kaolin

6.1. Determination of plant capacity

Based on the pilot plant flowsheet suggested by Central Metallurgical R & D

Institute ŽCMRDI. , the mass balance of the proposed beneficiation plant was
calculated. It was found that 271,000 tons of the run-of-mine Ž ROM. should be
processed to yield 184,067 tons of kaolin concentrates that covers the local
forecast of the annual demand on kaolins in ceramics and paper industries in the
year 2000. Applying the feed rates of the ROM in the mass balance of the
proposed beneficiation flowsheet, the number of major and auxiliary items of
equipment was selected according to their sizes and capacities Ž CIMM, 1982;
USBM, 1987; Youssef, 1994; Youssef et al., 1997. .

6.2. Capital cost estimate

There are four types of capital cost estimating that are adopted by the
American Association of Cost Engineers ŽAACE.. They are as follows Ž CIMM,
1982; Vogely, 1985; USBM, 1987; Behrens and Hawranek, 1991; Pascoe,
1992..
Ž1. Order of magnitude Žy30% to q50% accuracy range .. It is the least
accurate one because it is prepared without a flowsheet or a detailed list of
equipment. Often, the estimate is prepared by comparing the proposed process
with a known one.
 N.A. Abdel-Khalekr Applied Clay Science 15 (1999) 325–336 333

Ž2. Budget or Preliminary (y5% to q30% accuracy range). It is calculated

using a flowsheet and equipment data.
Ž3. Definite (y5% to q15% accuracy range). It is calculated using defined
engineering data, basic drawings and detailed sketches.
Ž4. Detailed (y2% to q10% accuracy range). Calculated from finalized
engineering drawings and data.
The present estimation is, therefore, based on the second type, i.e., ‘‘Pre-
liminary Estimate’’ because a flowsheet is established for the whole project.
In the meantime, there are four methods of cost estimation which are
restricted to the first two types, i.e., the ‘‘Order of Magnitude’’ and the
‘‘Preliminary’’ as follows Ž Vogely, 1985; Behrens and Hawranek, 1991; Pascoe,
1992.:
1. Exponential capacity — adjustment Ž Scaling method.
2. Cost ratio method
3. Plant component cost ratio method
4. U.S. Bureau of Mines method.
The ‘‘Plant Component Cost Ratio Method’’ is the basis used in the
‘‘Preliminary Capital Cost Estimation’’ of the kaolin beneficiation plant. It is
rather a developed method that takes into consideration the plant flowsheet and
equipment sizes as well as the cost of installation ŽYoussef, 1994; Youssef et al.,
1997.. In addition to applying an inflation factor, the method allows, also, the
fixed capital cost to be broken down into component parts, as shown in Table
11, which can be chosen by experience from standard tables Ž Pascoe, 1992. .
6.3. Operating cost estimate
Direct, indirect and fixed operating costs are calculated using the local costs,
electric power, water, fuel, etc. tariffs instead of the operating costs tables of

Table 11
Method of calculating capital cost of beneficiation kaolin plant
No. Component Ratio=item 1
1 Equipment cost
2 Equipment installation Ž0.17–0.25.
3 Piping, material and labor Ž0.13–0.25.
4 Electric, material and labor builds lighting Ž0.13–0.25.
5 Instrumentation Ž0.03–0.12.
6 Process building including mechanical services and lighting Ž0.33–0.5.
7 Auxiliary building including mechanical services and lighting Ž0.07–0.15.
8 Plant services including fresh water, sewers, etc. Ž0.07–0.15.
9 Site improvement, fences, roads, etc. Ž0.03–0.18.
10 Field expenses related to construction management Ž0.1–0.12.
11 Project management including engineering and construction Ž0.3–0.33.
Total fixed capital cost Sum s1q . . . q11
334 N.A. Abdel-Khalekr Applied Clay Science 15 (1999) 325–336

Table 12
Calculation of operating cost
No. Component Ratio
1 Mining cost Actual cost taken from the mining company
2 Transportation cost of ores Actual cost taken from the mining company
or concentrates
3 Power Local cost
4 Water Local cost
5 Labors Actual cost taken from the mining company
6 Depreciation 10% of plant capital cost
7 Plant maintenance 1% of installed equipment cost
8 Indirect cost 40% of direct cost of labors and maintenance
9 Insurance 20% of total labor cost
10 Taxes Free during the first 10 years and as 20%
of gross profit afterwards
11 Interest on loans 20% of total investment
Total operating cost Sum s1q . . . q11

U.S. Bureau of Mines Estimating Handbook Ž USBM, 1987. . Direct costs are
directly related to the production rate. This includes raw materials, utilities,
direct labor, plant and equipment maintenance, payroll overhead and operating
supplies. Indirect costs are not directly related to production rate. This includes
services, marketing and sales, public relation, etc . . . The fixed costs include
insurance, depreciation and local taxes Ž Youssef, 1994; Youssef et al., 1997. .
Table 12 depicts the different ratios taken in calculating the operating cost.

6.4. Financial eÕaluation of the project

Both the ‘‘Return on Investment’’ Ž ROI. and ‘‘Pay Back Period’’ Ž PBP. were
calculated at different alternatives and different selling prices. In each alterna-
tive, the net annual cash flow, the net profit, depreciation, taxes and the interest
have been estimated at different levels of selling prices. The possibility of
borrowing money from the banks was also taken into consideration in the
economic analysis ŽYoussef, 1994; Youssef et al., 1997. .

7. A new law for investment guarantees and incentives in Egypt

In line with the transition towards a market-driven economy that places great
emphasis on the role of the private sector, the People’s assembly of Egypt
finally approved the government’s new Investment Guarantees and Incentives
Law. This law is part of a series of economic legislation reform initiatives being
introduced by the Egyptian government as a mean of creating a more investor-
 N.A. Abdel-Khalekr Applied Clay Science 15 (1999) 325–336 335

friendly business environment for the next century. The 47-article law aims at
boosting production and direct foreign investments in Egypt by providing a
generous package of investment guarantees and incentives. Under the new law,
investors will be able to enjoy such perks as intended tax exemptions, protection
against sequestration, nationalization and the expropriation of assets and indus-
tries. For example, the law provides investors with tax exemptions of 10 years
for projects in the new industrial communities, 20 years in distant desert areas
and 5 years for other areas. It also gives investors access to free land and soft
loans.

8. The impact of the new law for investment on the economic viability of
projects

This new healthy climate of investment will have a positive impact on the
economic viability of projects in Egypt. For this reason, the pre-feasibility study
of beneficiation of Egyptian kaolin is recalculated in the light of this new
situation. Table 13 shows a comparison between the economic indicators before
Žin 1992. and after Žin 1997. the new law of investment.
Although the total capital cost required for installation of a plant besides the
mines is increased from 1992 to 1997 by ; 9.36% Ži.e., from about
US$36,309,000 to US$40,060,000. and the operating cost is nearly doubled
Ži.e., from about US$2,336,000 to US$4,589,000., yet the economic viability of
the project is significantly improved. For example, the ROI is increased from
23.32% in 1992 to 30.74% in 1997 while the PBP is reduced from 3.0–5.22
years in 1992 to 2.66 only in 1997. The same case is noticed for the alternative
of setting up the plant in Cairo near the consumers and for the other alternatives
as well. It should be mentioned that such profitability in terms of ROI is better
than that shown for a similar project for kaolin beneficiation plant at South
Carolina, USA ŽROI is between 20.0–23.4%. Ž Personal communication, Eco-
nomic analysis of the capital and operating cost of South Carolina kaolin
beneficiation plant, USA, 1992. . This clearly indicates the impact of the new

Table 13
Economic indicators before and after the new law of investment
1992 1997
Total capital cost, US$ 36,309,000 40,060,000
Operating cost, US$ 2,336,000 4,589,000
Costrton, US$ 12.69 24.94
Net annual cash flow, US$ 12,204,705 16,551,000–21,416,000
ROI, % 23.32 30.74–48.60
PBP, year 3.0–5.2 2.66
336 N.A. Abdel-Khalekr Applied Clay Science 15 (1999) 325–336

facilities presented to the investors in the new law of investment, on making the
projects more profitable especially in the new industrial communities and the
desert areas.

Acknowledgements

The author is most grateful to Prof. Dr. Aziza A. Youssef, principal investiga-
tor of the kaolin projects for her sincere assistance and deep concern.

References

Abdel-Khalek, N.A., Arafa, M.A., Hassan, F., 1996. Froth flotation of ultrafine Egyptian kaolin
ore. In: Mevlut Kemal et al. ŽEd.., Changing Scopes in Mineral Processing, Balkema,
395–400.
Abdel-Khalek, N.A., Hassan, F., Arafa, M.A., 1998. Carrier flotation of ultrafine Egyptian kaolin.
Physico-Chemical Problem in Mineral Processing Journal, Sept., Poland.
Abd El Rahman, M.K.M., 1996. PhD Thesis. Faculty of Science. Ain Shams Univ., Egypt.
Behrens, W., Hawranek, P.M., 1991. Manual for the Preparation of Industrial Feasibility Studies,
UNIDO, Vienna.
Central Agency For Public Mobilization and Statistics ŽCAPMS., 1997. CIC, Egypt.
Canadian Institute of Mining and Metallurgy ŽCIMM., 1982. Mining and mineral processing
equipment costs and preliminary capital cost estimations, 25.
Hassan, F., 1997. PhD Thesis, Faculty of Science, Ain Shams Univ., Egypt.
IPRE, 1996. 3rd International Plastics and Rubber Exhibition, 29th Feb.–3rd March.
Kendall, T., 1995. Kaolin competition intensifying. In: Bolger, R.L., O’Driscoll, M.J. ŽEds.., Raw
Materials for Pigments, Fillers and Extenders, Industrial Minerals, 79.
Murray, H.H., 1963. Mining and processing industrial kaolins. Georgia Miner. News Lett. 16,
3–11.
Pascoe, R.D., 1992. Capital and operating costs of mineral engineering plants — a review of
simple estimation techniques. Miner. Eng. 5 Ž8., 883–893.
Pickering, S.M., Murray, H.H., 1994. Kaolin. In: Carr, D.D. ŽEd.., Industrial Minerals and Rocks,
6th edn. SME, USA.
USBM, 1987. US Bureau of Mines Cost Estimating System Handbook: 2. Mineral Processing, IC,
9143.
Vogely, W.A., 1985. Economic of the Mineral Industries. AIME, New York, 660 pp.
Youssef, A.A., 1993. Techno-economic pre-feasibility study for a kaolin beneficiation plant of the
Red Sea deposits. Final Report, CMRDI, Academy of Scientific Research and Technology,
Cairo, Egypt.
Youssef, A.A., 1994. Upgrading of Egyptian kaolin to meet specifications for paper and ceramic
industries. Final Report, CMRDI, presented to Academy of Scientific Research and Technol-
ogy, Cairo, Egypt.
Youssef, A.A., 1996. Techno-economic pre-feasibility of upgrading of Kalabsha kaolin. Industrial
Report, Central Metallurgical R&D Institute, CMRDI, October, Cairo, Egypt.
Youssef, A.A., Boulos, T.R., Abdel-Khalek, N.A., 1997. A recent study for the techno-economic
feasibility of the project upgrading of Egyptian kaolin to meet specifications for paper and
ceramic industries. Final Report, CMRDI, Cairo, Egypt.