CERT.NO. 3400 AS/NZS ISO 9001 & ASSOCIATES Our reference: C:\DOCUMENTS AND SETTINGS\GARNERG\DESKTOP\PUBLICATIONS\FEASIBILITY STUDY LEATHER PROCESSING PLANT QLD.DOC 25 October 1996 PRIVATE & CONFIDENTIAL PRE-FEASIBILITY STUDY FOR A LEATHER PROCESSING FACILITY AT EBENEZER, QLD. "MINAJI"1 (MS. CATHERINE J SCALLY) 1. PREFACE This Feasibility Study sets out, inter alia, operational guidelines for a proposed leather processing facility project (‘‘the Project’’) to be carried out in the vicinity of Ebenezer, Queensland, under the auspices of an organisation to be incorporated in Queensland - Minaji (‘‘the Company’’2). This Project, initiated by Ms Catherine Scally (‘‘the Client’’) has been carried out utilising the services of Gary O Garner & Associates (‘‘the Consultant’’) as a Regional Economic Development Program (‘‘REDP’’) Feasibility Study, as arranged through the Ipswich Regional Office of the Department of Tourism, Small Business & Industry (‘‘DTSBI’’). 1 Ms Catherine Scally. ACN to be registered under the nomenclature “Minaji” 2 The term "Company" as used throughout this document is a generic term used to describe the organisation (“Minaji”) to be established for the purpose of progressing the Project. “MINAJI” (MS C. SCALLY) FEASIBILITY STUDY FOR THE ESTABLISHMENT OF A LEATHER PROCESSING FACILITY AT EBENEZER Page 2 Section PREFACE TABLE OF CONTENTS 1. PREFACE ................................................................................................. 1 2. EXECUTIVE SUMMARY........................................................................... 8 3. INSTRUCTIONS/TERMS OF REFERENCE ........................................... 13 TERMS OF REFERENCE ................................................................................................ 13 Introduction.................................................................................................................. 13 Further Background and Feasibility Study Considerations ......................................... 14 Strategic Direction..............................................................................................................................14 General Comments..............................................................................................................................15 METHODOLOGY & APPROACH..................................................................................... 15 General Approach ....................................................................................................... 15 Required Evaluation .................................................................................................... 16 Purpose of Consultancy .............................................................................................. 16 Objectives.................................................................................................................... 17 4. COMPANY DETAILS .............................................................................. 18 5. DEFINITIONS & PROCESS TERMINOLOGY ........................................ 19 COMMON METHODOLOGY & PROCESSES USED IN LEATHER TANNING / PROCESSING.................................................................................................................. 19 Curing..........................................................................................................................19 Soaking and Unhairing ................................................................................................ 20 Deliming and Bating .................................................................................................... 20 Vegetable Tanning ...................................................................................................... 20 Mineral Tanning........................................................................................................... 21 Lubrication and Dyeing................................................................................................ 21 Finishing ...................................................................................................................... 21 GENERIC TANNING PROCESSES................................................................................. 22 Finishing ...................................................................................................................... 23 Sources of Leather ...................................................................................................... 23 TANNING PROCESSES INTENDED TO BE USED BY THE EBENEZER PROJECT..... 23 6. PROFESSIONAL SERVICES ................................................................. 25 BANKERS.........................................................................................................................25 ACCOUNTANT................................................................................................................. 25 SOLICITORS.................................................................................................................... 25 7. COMPANY BACKGROUND ................................................................... 26 ORGANISATION.............................................................................................................. 26 COMPANY PRINCIPAL.................................................................................................... 26 8. THE ENTERPRISE - AN OVERVIEW..................................................... 27 MAJOR ACTIVITIES (SUMMARY)................................................................................... 27 PRODUCTION & PROCESSING CONCEPTS (SUMMARY)........................................... 27 PRINCIPAL PRODUCTS.................................................................................................. 28 PRINCIPAL MARKETS .................................................................................................... 28 FACTORS LEADING TO SUCCESS................................................................................ 28 9. S.W.O.T. ANALYSIS............................................................................... 30 STRENGTHS ................................................................................................................... 30 WEAKNESSES ................................................................................................................ 30 25 October 1996 C:\DOCUMENTS AND SETTINGS\GARNERG\DESKTOP\PUBLICATIONS\FEASIBILITY STUDY LEATHER PROCESSING PLANT QLD.DOC “MINAJI” (MS C. SCALLY) FEASIBILITY STUDY FOR THE ESTABLISHMENT OF A LEATHER PROCESSING FACILITY AT EBENEZER Page 3 Section PREFACE OPPORTUNITIES ............................................................................................................ 31 THREATS.........................................................................................................................31 10. STATEMENT OF BUSINESS OBJECTIVES.......................................... 32 11. MISSION STATEMENT........................................................................... 33 12. PRODUCTS ............................................................................................ 34 SUMMARY OF PRODUCTS ............................................................................................ 34 PRODUCT ALTERNATIVES............................................................................................ 34 General........................................................................................................................ 34 Leather Substitutes ..................................................................................................... 35 COMPETITIVE ADVANTAGE .......................................................................................... 35 FURTHER PRODUCT DEVELOPMENTS & PLANNED INITIATIVES............................. 35 13. PROPERTY, BUSINESS PREMISES & OTHER PHYSICAL RESOURCES.......................................................................................... 36 GENERAL DESCRIPTION OF THE EBENEZER PROPERTY ........................................ 36 ACQUISITION (BASED ON VALUATION) ....................................................................... 37 LOCATION ....................................................................................................................... 37 TITLE PARTICULARS...................................................................................................... 38 ZONING / TOWN PLANNING .......................................................................................... 38 ZONE NO. 1 (RURAL ZONE) ..................................................................................... 38 Objectives of Zone...............................................................................................................................39 Permitted Development.......................................................................................................................39 Permitted Development Subject to Conditions....................................................................................40 Permissible Development....................................................................................................................40 Prohibited Development .....................................................................................................................40 NON-URBAN ZONE.................................................................................................... 41 Current Development Consents