Talc processing plant Nangarhar province Note: This project has been cancelled, because the local security situation prevented the implementation of the project.The local partner, Berouge Building Paints Producing Company, presently mixes paints for the exterior of buildings using ingredients imported from Pakistan. Their brand, Berouge, successfully competes with other paints on quality. They produce 4,200 Mtons per year. Their margin is very slim and they have looked for possibilities to reduce production costs. In their kind of paint 50% of the price is constituted by titanium oxide. This component can be substituted partly by using talc. In a neighbouring district very high quality unprocessed talc (98% purity) is excavated and sold to China and Pakistan. The processed talc imported from Pakistan is of very poor quality and expensive. Berouge decided to use the Afghan talc and process it themselves. In Pakistan they met with a manager of a Swiss company (Steinbruck) specialised in minerals. He introduced Berouge to the applicant Paltentaler, an Austrian company that processes talc. This company is desperate to find a new supply of talc as the major exporters, China and Pakistan, have reduced their exports with 25% and process it themselves. Berouge and Paltentaler decided to start a joint venture buying lumps of talc from the miners in Afghanistan and process it in Afghanistan. 60% will be transported to Paltentaler, 40% will be used for paint production by Berouge. Paltentaler will process it further for all kind off purposes like ingredients for food and pharmaceuticals. If successful, the joint venture will excavate the talc themselves and increase the production. They have already agreed this with the Afghan company supplying the talc.Corporate Social Responsibility (CSR)The CSR policy covers all the standards issues like living wage, medical support, safety and health on the work floor etc.Impact•	Employment and working conditionsThe project will pay minimum wages above the living wages. The fringe benefits are paid holidays (3 weeks a year), health care, free meals and medical insurance. The women will also have three months of paid maternity leave.•	Innovation/Transfer of knowledgeThere is no talc processing in Afghanistan.•	Chain effectsImpact on local suppliersThe suppliers of talc will be able to raise the quality of their product and receive a much better price for it. The applicant has great stakes in the supply of high purity talc and is therefore more than motivated to enable the talc miners to achieve this.Impact on local customers or consumersTalc is used as an input for a variety of products. Customers will be able to buy high quality processed talc in Afghanistan instead of importing poor quality from Pakistan.•	EnvironmentThe talc is pure (98%) and does not contain asbestos. The paint is based on water.•	Position of womenThe local partner presently employs as many women as is culturally possible. He does so by allowing them to work separately from the male workers. Most administration, housekeeping etc. is done by women. Women have a paid maternity leave of 90 days, which is very uncommon in Afghanistan. In the joint venture he will employ women in strategic positions. The production of 20,000 tons of talc annually.