Nigeria imports about 2 Million Tonnes of rice annually making it the second largest importer of rice in the world despite its comparative advantage in rice production. Current projections indicate that Nigeria will require 36 Millions Tonnes of rice annually by 2050 to meet the needs of its 300 Million people. KRC seeks to fill the demand-supply gap through the development of its Integrated Rice Production project which will harness local capacity and Nigeria’s comparative advantage in rice production. http://www.Homestrings.com/VehiclePreview/a03F0000009uUWiIAM

1. Integrated Rice Production Project
(IRPP)

2. 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

3. About KRC

4. 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

5. KRC IRPP: Project Execution Strategy
SPV Shareholding
Structure
SPV
(Integra Rice Company)
KRC
(80%)
Kwara State Govt.
(20%)

6. KRC IRPP: Project Objectives

7. KRC IRPP: Paddy Production Model

8. KRC IRPP: Our Rice Products
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9. 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

10. KRC IRPP: Development Partners

11. KRC IRPP: Financials
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■ 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

12. 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

13. How can you get involved?

14. Contacts