Page 10 - energy co

Fifth: Project Direct Operating Costs:

Based on the available information, direct operating expenses were estimated as follows:

A Raw Material Cost :

Raw sodium chloride salt is used.
To produce one ton of sodium chloride:
1.2 tons of raw sodium chloride (priced at EGP 160/ton)
The average cost of packaging per ton is EGP 600/ ton.

B Energy

To produce one ton of sodium chloride:

12 m of natural gas (EGP 2.5/ 1 m )
40 KW/h of electricity (EGP 1 /1.2 KW/h)
1 m of process water (EGP 3/ 1 m )

C Direct Labor Wages

The direct labor cost has been estimated as follows:
130 production workers as shown in the following table.

It was assumed that all operating expenses would increase by %2.5 annually, except for labor
(%10 annually).
The following table shows the operating expenses for sodium chloride production during the
study period (10 years).

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