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Ex-10.11 Baninsa Caracas 12th April, 1996 the Continental Orinoco Company, Inc. 360 West 22nd Street, Suite 16b. New York, Ny, 10011 Atn Adrian C. Nash, President & CEO Dear Sirs, in Accordance to Your Instructions to Review the Morgan Stanley Valuation Model Prepared in 1993, and in Particular the Assumptions That Were Made at the Time in Order to Operate and Draw Conclusions From the Mentioned Model, Our Comments and Conclusions Are as Follows: General: A) Concession of 150 Million Tons of Mineable Ore. B) Production Ratio - 4 Tons Bauxite 1.92 Tons of Alumina: 1 Ton of Aluminum. C) Annual Inflation at 5% Per Annum in US Dollar Terms. D) Venezuelan Tax at 30% Currently 34%. E) Interest Rates at 10.5% in US Dollars. F) Debt Ration: Equity 33% Debt 67%. G) Present Day Value Discount Rate at 15%. Bauxite Mine: A) Capital Cost (Construction Period 2.5 Years) US$ $297 Million. B) Operating Costs US$ $12.07 Per Ton. C) Maintenance Costs -- First Two Years 1.5% of Capital Cost, Thereafter 3% of Capital Cost. D) Annual Production: 4 Million Tons. E) Sales Price: US $31.36/Dry Ton. Integrated Project: A) Capital Costs: Refinery (Construction Period 3 Years) US $1.100 Million Smelter (Construction Period 4 Years) US $1.931 Million B) Operating Costs: Refinery US $89,25 Per Ton Smelter US $472,97 Per Ton <page> C) Maintenance Costs -- First Two Years 1% of Capital Cost, Thereafter 1.5% of Capital Cost. D) Annual Production for Sale: Bauxite 2 Million Tons Aluminum 500,000 Tons E) Sales Price US $1.800 Per Ton (Base Case). We Have Reviewed the Assumptions Made by Morgan Stanley Detailed Above and Can Conform That on Aggregate They Remain Valid Today and as a Consequence We Are of the Opinion That the Values Reached by Morgan Stanley in Their Report Can Be Considered a Fair Value as of Today's Date. Kind Regards, /S/ Andres German Otero L. Andres German Otero L. Vice President Corporate Finance
