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XANTHATE CHEMICALS

CONTENTS

SECTION I PRODUCT CHARACTERISTICS AND SPECIFICATION SECTION II PRODUCT APPLICATIONS SECTION III INDIAN MANUFACTURERS SECTION IV IMPORT/EXPORT LEVEL SECTION V PRICE DETAILS SECTION VI INDIAN DEMAND SECTION VII BROAD OUTLINE OF MANUFACTURING PROCESS SECTION VIII RAW MATERIAL REQUIREMENTS, UTILITY

AND AVAILABILITY SECTION IX GLOBAL SCENARIO SECTION X DISCUSSIONS ON ECONOMIC CAPACITY,

PROJECT COST AND PROFITABILITY PROJECTIONS

SECTION XI SWOT ANALYSIS SECTION XII FACTORS INFLUENCING THE POSITION FOR

A NEW INDUSTRY AND RECOMMENDATIONS

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SECTION I

PRODUCT CHARACTERISTICS AND SPECIFICATIONS

Alkali Metal Xanthate are reactive accelerators for the vulcanisation of rubber and latex products. They are active even at room temperatures; hence used only in cold curing applications just as omnipatches, repair of tank lining etc. Specifications Sodium Isopropyl Xantahte Chemical formula C3H7OCS2Na Molecular weight 158.2 Melting point 278 to 282 deg.C Flash point 230 deg.F Appearance Dry Powder in the form of small flakes with

white to grayish yellow colour

Xanthate content 80% minimum (test iodometically) Bulk density 0.6 to 0.8 Impurities in terms of Xanthate 6-8% pH (5% solution) 8.5 to 11.0 Solubility in water and alcohol 97% minimum at 20 deg.C Potassium Ethyl Xanthate Chemical formula C66H5.OCS2K Molecular weight 160.3 Flash point 205 Deg.F Melting point 2 deg.C(Decomposition) Assay 80%, 2% variation acceptable pH (5% solution) 9.5 to 10.5 Bulk density 0.7 to 0.9 Solubility in H2O 97% Solubility in Ether 3% minimum Impurities 6 to 8% Moisture Balance quantity Oil Nil (not even traces)

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Potassium Amyl Xanthate Chemical formula C5 H11OCS2K Molecular weight 202 Melting point 2 Deg.C Flash Point 250 deg.F Assay 80%, 2% variation acceptable pH (5% solution) 9.5 to 10.5 Bulk density 0.7 to 0.9 Solubility in water 97% Solubility in ether 3% maximum Impurities 6-8% Moisture Balance quantity Oil Nil (Not even traces)

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SECTION II

PRODUCT APPLICATIONS Alkali metal Xanthates find use as mineral flotation agent in the copper mines and zinc/lead mines and gold mines, which represent the sulphide mineral mines in the country.

Sodium isopropyl xanthate Acts as a collector in the flotation of copper and lead/zinc ores. Potassium ethyl xanthate Acts as a collector in the flotation of lead/zinc ores Potassium amyl xanthate Acts as a collector in the flotation of gold ores.

Xanthate Chemicals

Ore flotation Pesticide sector Rubber sector

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SECTION III

INDIAN MANUFACTURERS

The producers of Alkali Metal Xanthate in the country include the following: 1. Aceto Chemicals Pvt.Ltd., Calcutta 2. Eastern- Fine-O-Synthesis, Calcutta 3. Chrome International, Jaipur, Rajasthan 4. Pacific Chemicals, Thane, Maharashtra The plants are of multi product mature. The production level can be marginally increased with small additional investment, if required at short notice.

Indian installed capacity Around 1500 tonnes per annum.

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SECTION IV

IMPORT AND EXPORT LEVEL There is reported to be no imports/exports of Sodium Iso Propyl Xanthate, Potassium Ethyl Xanthate and Potassium Amyl Xanthate.

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SECTION V

PRICE DETAILS

Basic price Sodium isopropyl Xanthate Rs.60000 per tonne Potassium ethyl Xanthate Rs.70000 per tonne Potassium amyl Xanthate Rs.150000 per tonne Taxes and duties Extra as applicable

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SECTION VI

INDIAN DEMAND

The following are the potential applications of Alkali metal Xanthates. 1. Principal, metal sulphide collectors used in the sulphide mineral ores. 2. For the vulcanisation of rubber 3. In the manufacture of rubber 4. As an intermediate in the manufacture of Saccharin. Of the above, the only significant use for Xanthates in India are as metal sulphide collectors in the mineral sulphide ores. The other use of Xanthates are insignificant The Alkali metal Xanthates find use as mineral flotation agent in the copper mines, zinc/lead mines and goldmines, which represent the sulphide mineral ores in the country. Sodium Isopropyl Xanthate is used in India for copper recovery by flotation techniques in the copper mines and the extent of use varies from 70 gm/tonne of ore to 80 gms per tonne of ore. In the case of lead/zinc ore, sodium isopropyl Xanthate is used to the extent of 10 gms/tonne of ore along with potassium ethyl Xanthate upto 50 gms per tonne of ore. Potassium amyl Xanthate is used by Bharat Gold Mines Ltd., for separation of arsenopyrite from Scheelite. The quantity of gold ore produced by Bharat Gold Mines itself is comparatively a small quantity. Demand (in tonnes per annum) Sodium Isopropyl xanthate 650 Potassium Ethyl Xanthate 100 Potassium Amyl Xanthate 30 The growth rate in demand is considered around 6% per annum.

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SECTION VII

BROAD OUTLINE OF MANUFACTURING PROCESS

The alkali metal Xanthates are generally prepared by the reaction of Sodium hydroxide or Potassium hydroxide with respective alcohol and Carbon di sulphide. The initial reaction is the formation of alkoxide, which reacts with Carbon di sulphide to give the Xanthates. FOH + NaOH` → RONa + H2O RONa + CS2 → ROCS2Na Reaction for Potassium Ethyl Xanthate: C2H5OH + KOHC2H5OK + H2O C2H5OH + CS2C2H5OCS2K Potassium Ethyl Xanthate is prepared by the reaction of Potassium hydroxide with ethyl alcohol and carbon di sulphide. Reaction for Sodium Isopropyl Xanthate C3H7OH + NaOH C3H7ONa + H2O C3H7ONa + CS2C3H7OCS2Na Sodium Isopropyl Xanthate is prepared by the reaction of Sodium hydroxide with isopropyl alcohol and carbon di sulphide. Reaction for Potassium amyl Xanthate C5H11OH + KOH C5H11OK + H2O C5H11OK + 2C5H11OCS2K Potassium amyl Xanthate is prepared by the reaction of potassium hydroxide with amyl alcohol and carbon di sulphide. The process is further described below: The required quantity of the respective alcohol for the alkali metal Xanthates would be charged into the reactor vessel. The respective alkali for the alkali metal Xanthates would be slowly added to the above alcohol in the reactor vessel with continuous agitation. During the addition, chilled water will be circulated in the jacket to maintain the ambient temperature conditions of the contents in the reaction vessel.

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After the completion of the addition of the alkali, Carbon di sulphide would be added gradually with continuous agitation. During the addition of Carbon di sulphide, chilled water would be circulated in the jacket to maintain the temperature of 30,,to 35 deg c of the contents of the vessel. The batch would then be run down to a receiving tank for the purpose of filtration by gravity and removal of the water content in the Xanthate product. After the filtration, the product would be dried in a vacuum tray dryer, maintaining the maximum temperature in the dryer of 55 deg.C and the dried product would then be packed. The plant should be designed in such a way that at any time, there should be facilities to manufacture any of the Xanthate product indicated. Source of technology * National Chemical Laboratory, Pune

Major plant and machinery and suppliers Plant & Machinery

Name of the suppliers

Storage vessels Industrial Equipments Co. Plot No.B-5, Bhosari Industrial Estate Pune-411 026 The Anup Engineering Ltd.,\ P.B. No.1158, Ahmedabad-380 002

Reaction vessels Pugazh Chemicals Plant & Equipment Pvt. Ltd. Plot No.69, Old No.39, II main Road, Ambattur Indl. Estate Chennai-600 058 Srivari Enterprises SP-123, XIX Phase Ambattur Indl. Estate, Chennai-600 058

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Vacuum tray dryer V.P. Engineering Plot No.25/8, MIDC, Opp. Hindustan Petroleum, Turbhe, Navi Mumbai-400 705 Ganson Ltd. 645, Anna Salai, Chennai-600 006

Chilling plant Newtech Cooling Tower 5, Saikutir, Near Subway Garden Sainath Road, Malad (W),Mumbai-400 064 National Engineers 26, Amrapali Ind. Estate, Ram Mandir Road, Goregaon (W) Mumbai-400 104

Receiving filter (Nutche type)

A.V. Industrial Plastics Corp. 202/Him Shikhar,1st Floor, Plot No.113 Sector 21, Near Apna Bazar Nerul, Navi Mumbai-400 706 Aristo Engineers J-3, Vikas Udyog Nagar, Behind Kasturi Tiwer Phatak-Goddeo Road, Bhayander (E), Thane-401 105

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Vacuum pump Travaini-Maneklal Vacuum Technology Pvt. Ltd., Manek Mahal, 7th Floor, 90, Veer Nariman Road, Churchgate, Mumbai-400 020 Southern India Instrumech Pvt. Ltd., 160, Baba Nagar, Villivakkam Chennai-600 049

Feed tank Agarwal Associates, 255, Kalpana Society Waghodia Road, Baroda-390 019 Aristo Engineers J-3, Vikas Udyog Nagar, Behind Kasturi Tiwer Phatak-Goddeo Road, Bhayander (E), Thane-401 105

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SECTION VIII

RAW MATERIAL REQUIREMENTS, UTILITY AND AVAILABILITY Raw material requirements Basis - One tonne of Potassium Ethyl Xanthate Ethanol 490 kgs Potassium hydroxide 180 kgs Carbon di sulphide 330 kgs Basis - One tonne of Sodium Isopropyl Xanthate Isopropyl alcohol 490 kgs Sodium hydroxide 180 kgs(flakes) Carbon di sulphide 3 kgs Basis - One tonne of Potassium amyl Xanthate Amyl alcohol 490 kgs Potassium hydroxide 180 kgs Carbon di sulphide 3 kgs Utilities Fuel 80 litres Total installed power 40 H.P. Source of supply of raw materials

Name of the product

Raw materials Name of the company

Potassium Ethyl Xanthate Ethanol Trichy Distilleries Ltd., Trichy, Thiru Arooran Sugars Ltd.,

Potassium hydroxide SreeRayalaseema Alkalies & Chemicals, Andhra Pradesh

Carbon di sulphide Grasim Inds.Ltd.,M.P.

Sodium Isopropyl Xanthate

Isopropyl alcohol To be imported

Sodium hydroxide DCW Ltd., Armuganeri, Tamil Nadu Chemfab Alkalies,Pondicherry

Carbon di sulphide Grasim Inds.Ltd.,M.P.

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Potassium amyl Xanthate Amyl alcohol To be imported

Potassium hydroxide SreeRayalaseema Alkalies &

Chemicals, Andhra Pradesh

Carbon di sulphide Grasim Inds.Ltd.,M.P.

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SECTION IX

GLOBAL SCENARIO

The important global producers include the following * Union Carbide Australia Ltd., 157 Liverpool St., Sydney N.S.W.2000, Post Box 5322 GPO Dydney, NSW 2001 * Industrial Quimica de Mexico, S.A. de C.V., Bosque de Ciruelos 304-90 Mexico, D.F.11700, Mexico * Quimic QB Industrial Quimica de Mexico, Paxode las Palmass 5556 P50 Lomas de Chapultepee, 110 Mexico

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SECTION X

DISCUSSIONS ON ECONOMIC CAPACITY, PROJECT COST AND

PROFITABILITY PROJECTIONS Economic capacity 150 tonnes per annum Sodium isopropyl Xanthate 100 tonnes Potassium ethyl Xanthate 20 tonnes Potassium amyl Xanthate 30 tonnes Project cost Rs.101 lakhs Assessment of project cost 1. Land S.No. Description Cost

Rs.in lakhs 1.1 Cost of land of 0.5 acre at Rs.5.5 lakh per acre

2.75

1.2 Cost of levelling, laying internal roads/fencing and compound wall

0.28

Subtotal 3.03 2. Building S.No. Description Cost

Rs.in lakhs 2.1 Factory building of area 250 sq.m. at Rs.3200/sq.m.

9.60

2.2 Non-factory building of area 80 sq.m.at Rs.4500/sq.m.

3.60

Subtotal 13.20

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3. Cost of Plant & Machinery S.No. Description Cost

Rs.in lakhs 3.1 Cost of basic plant and machinery 32.00 3.2 Instrumentation and control 2.40 3.3 Pipelines and valves 3.20 3.4 Structurals for erection 1.60 Subtotal 39.20 3.5 Octroi, excise duty, sales tax, etc.at 12%� 4.70 3.6 Packaging and insurance charges (2%) 0.78 3.7 Transportation charges (2%) 0.78 3.8 Machinery stores and spares (2%) 0.78 3.9 Foundation charges (2%) 0.78 3.10 Installation charges (2%) 0.78 Total cost of plant and Machinery 47.82 4. Technical know-how fees Rs.2 lakhs 5. Miscellaneous fixed assets S.No. Description Cost

Rs.in lakhs 5.1. Electrification 0.80 5.2. Steam boiler and auxillaries 3.00 5.3. Water storage tank, borewell etc. 0.80 5.4. Fuel storage tank 0.80 5.5. Laboratory equipment 1.20 5.6. Office machinery & equipment 0.80 5.7. Material handling equipment, packaging machinery,

weigh balance, etc. 0.80

5.8. Diesel generator 3.50 5.9. Effluent treatment 1.50 Total 13.20

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6. Preliminary & Pre-operative expenses: S.No. Description Cost

Rs.in lakhs 6.1. Preliminary expenses 0.80 6.2. Pre-operative expenses:- 6.2.1 Establishment 0.80 6.2.2 Rent rates and taxes 1.00 6.2.3 Travelling expenses 1.20 6.2.4 Interest and commitment charges on borrowings 2.50 6.2.5 Insurance during construction period 1.50 6.2.6 Other preoperative expenses and deposits - 6.2.7 Interest on deferred payment - Total 7.80 7. Provision for contingency Rs. 5.31 lakhs 8. Working capital margin Rs. 8.35 lakhs 9. Total project cost Rs.101 lakhs 10. Means of Finance Promoter's contribution Rs.40 lakhs Term loan from financing institutions Rs.61 lakhs Total project cost Rs.101 lakhs

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11. Financial statements A Variable cost

Rs. in lakhs

Raw material and utilities 43.74 Spares and maintenance 2.87 Selling expenses 5.95 Total variable cost (A)

52.56

B Fixed cost

Salaries and wages 12.00 Interest on term loan and working capital loan 15.49 Depreciation 6.53 Administrative expenses 3.57

Total fixed cost (B)

37.59

C. Total cost of production (A+B)

90.15

D. Selling price per tonne. (in Rupees) Sodium isopropyl Xanthate Potassium ethyl Xanthate Potassium amyl Xanthate

60000 70000

150000

E. Annual sales turnover

119

F. Net profit before tax (E-C)

28.85

G. Breakeven point in %

57%

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SECTION XI

SWOT ANALYSIS Strength Growing demand as floatation agent in

mining sector

Weakness Small capacity plant

Opportunity Exports

Threat Use of hazardous chemical and environmental regulations

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SECTION XII

FACTORS INFLUENCING THE POSITION FOR A NEW INDUSTRY AND

RECOMMENDATION

The project for Xanthates chemicals can be set up in multi product facilities, where individual xanthates can be produced depending upon the order scenario from time to time. It would be preferable to locate the unit near the supply source of Carbon disulphide, which is basic raw material for the project