Franklin Mining, Inc. and its associates and partners in Bolivia are positioned to enter the lucrative processing market in Bolivia. The economic climate is conducive for the addition of mineral processing plants due to the existence of a surplus of mining and a shortage of plants available to process the ore into a marketable concentrate. The reason for this is quite simple; the open accessibility of mining concessions in Bolivia available to the communities and private enterprise allows for the free exploitation of mineral in large quantities.
The processing of the mineral becomes a necessity for those in the small to medium scale operations. Most large mining operations have their own plants onsite. While local communities and co-operatives can mine at will, they do not possess the capital or expertise to purchase, design, construct, and operate their own processing facilities. This leaves them at the mercy of the few operating plants available for public use.
The President of COMIBOL (the Bolivian government owned mining company) suggests that the best investment in Bolivia is in the processing of the ore form all of the operating mines. Since supply and demand are always the source driving the market rates, the processing plants have a very comfortable and stable market situation in Bolivia. Smelting operations would also be a lucrative investment as there are even fewer smelters in Bolivia than processing plants.
The labor costs of any operation in Bolivia create a lucrative situation for all types of manufacture as well as the labor rates favor the operators in most cases. Franklin and its associates and partners have the necessary elements to create an enterprise which will have the revenue potential and capital return of investment largely unavailable to other operators and investors due to the experience, expertise and most importantly the contacts of our people in this environment.
It could be argued that any competent operator could come into a market of such demand and make satisfactory profits on their investment, however, with the right people and contacts with commitments to deliver raw mineral laden ore of a multitude of values, it becomes much more conducive to the bottom line.
We have those contacts. We have the mineral rights to some very promising hard rack mining and tailing operations but we have the ability to purchase the ore that makes the most economic sense at any given time which enhances the profitability of the processing operation significantly. We believe the market is without limit and the return on investment is also very predictable given the demand of the market itself.