Russian Quartz Company profile Head office & production sites - PowerPoint PPT Presentation

Russian Quartz

Company profile Head office & production sites location Russia, Cheliabinsk region, Kyshtym Shareholders ▪ OJSC « Kyshtymsky mining & processing plant », Russia ▪ Sumitomo Corp., Japan ▪ OJSC « RUSNANO » , Russia ▪ « KvartzVIK » LLC , Russia Foundation date August 2011 Products ▪ High Purity Quartz Concentrates (HPQ) grades: RQ-4K, RQ-3K, RQ-2K/Ki/Kf, RQ-1 К; Production capacity ▪ 3 500 MT/year - current HPQ production, ▪ 6 000 MT/year - planned in 2022 Employees 190 persons Resourse base - reserves – more than 1 million tons of quartz ore - unique vein 175 with proven by JORC audit quartz ore reserves for 30 year full-capacity production

Location of production sites N С Kyshtym Moscow 100 Chelyabinsk region Ю km S - railway Chelyabinsk - road Production sites of the Company are located in Kyshtym, Chelyabinsk region, Russia. This region is historically industrialized, so the Company does not have any limits in terms of infrastructure and logistics. In total, Russian quartz LLC has two production sites: Underground mine at the vein 175 and Dry Processing Plant (DPP) near to the quartz deposit (vein 175) (Dry Processing Site) Wet Processing Plant (WPP) in Kyshtym (Wet Processing Site)

Resource base More than 1 million MT of quartz reserves for different Year-round operations applications Reserves of vein 175 more than > 30 500 000 MT (more than 30 years of Main source of raw quartz – vein 175 SiO 2 Company life) years ▪ Raw material base of Russian Quartz LLC is unique deposit of granular quartz in Kyshtym. ▪ Total length of deposit is 15km with width 1-3km, area – 20km 2 . ▪ Proven reserves of quartz ore in Kyshtym deposit are over 1 million tons. ▪ Kyshtym deposit of granular quartz was developed in 1960-1970 and for more than 50 years been successfully used as a raw material for different applications

Vein 175 as a source of HPQ for semiconductor applications ▪ Vein № 175 has natural quartz with unique properties combination (like minimum B & P content, the lowest Al, Alkali, Cu, Ni, Cr, Fe content, low bubbles and mineral inclusions content). ▪ After purification total sum of impurities in grades RQ-2K/1K less than 10 ppm that allow to use quartz from this vein in all applications where quartz glass products are needed. ▪ The chemical and mineralogical composition of quartz ore and HPQ produced from it, is unchanged in the entire volume of the vein 175, which allows consumers to rely on the consistently high and stable quality of Russian quartz products ▪ In 2014, an international company IMC Montan audited vein 175 and confirmed the resources of quartz ore in the amount of more than 500 thousand tons ▪ For the organization of stable operation and reliability of supplies to consumers, the Company maintains the level of ore reserves at the warehouse sufficient for the smooth operation of the company for 9 months. It also allows for an early analysis of the quality of ore entering the production.

Vein 175 as a source of HPQ for semiconductor applications The constancy of the quality of the quartz ore of the vein 175 is confirmed by both the long-term operation of the mine and the stable qualitative characteristics of HPQ produced from this quartz ore. As an example, the average values of the chemical composition of the grade RQ-2K for the period 2014-2018 are given in the following table: Year Al B Ca Cr Cu Fe K Li Mg Mn Na Ni Ti 5 0,08 0,33 0,03 0,01 0,35 0,2 0,3 0,1 0,01 0,41 0,01 3 2014 2015 4 0,08 0,16 0,01 0,01 0,18 0,2 0,3 0,1 0,01 0,36 0,01 3 2016 4 0,08 0,16 0,01 0,01 0,20 0,2 0,3 0,1 0,01 0,35 0,01 3 2017 4 0,08 0,12 0,01 0,01 0,18 0,1 0,3 0,1 0,01 0,29 0,01 3 2018 4 0,08 0,11 0,01 0,01 0,14 0,1 0,3 0,1 0,01 0,29 0,01 3 Improving the quality of a number of elements is associated with the continuous improvement of the enrichment technology of Russian quartz, while the quality of the ore itself remains consistently high

RQ’s products Sum of impurities, Grade Application no more than Quartz lighting, including automotive xenon, halogen and HID RQ-3K <12 ppm lamps, outer layer of crucibles for photovoltaic industry RQ-2Kf <10 ppm Large diameter quartz tubes and ingots Czochralski crucibles for PV industry, RQ-2K <10 ppm quartz tubes and ingots, quartz lighting Czochralski crucibles for PV and semiconductor industry (inner RQ-2Ki <9 ppm layer), large diameter quartz tubes and ingots RQ’s grade after chlorination process, developed for Czochralski RQ- 1К <9 ppm crucibles and quartz glass for semiconductor industry

RQ’s HPQ chemical content (typical value), ppm Grade Al B Ca Cr Cu Fe K Li Mg Ni Na Ti RQ-3K 6 n/a 0,5 n/a n/a 0,5 0,3 0,3 0,2 <0,1 0,6 2,9 RQ-2K 4,3 <0,1 0,2 <0,01 <0,01 0,2 0,2 0,3 0,1 <0,1 0,3 2,9 RQ-2Kf 4,2 <0,1 0,2 <0,01 <0,01 0,2 0,1 0,3 0,1 <0,01 0,3 2,8 RQ-2Ki 4,1 <0,1 0,1 <0,01 <0,01 0,1 0,1 0,3 0,1 <0,01 0,3 2,8 RQ-1K 3,8 0,07 0,1 <0,001 <0,001 0,05 0,03 0,3 <0,1 <0,001 0,06 2,8

Analytical lab Russian quartz has a modern laboratory that allows to perform all the necessary analyzes to assess the quality of ore and finished high-purity concentrates, namely: - Chemical analysis (ICP-OES method). Accuracy of determining the content of main impurity elements – 0,01 ppm, for Cu, Ni, Cr – 0,001 ppm - Mineralogical analysis - Particle size distribution analysis (sieve analysis) - Bulk density analysis All laboratory equipment undergoes the necessary checkout procedures in a timely manner, as well as cross-correlation procedures with consumers' analytical laboratories in order to avoid errors and deviations in assessing the quality of the finished product. In addition, the laboratory of Russian Quartz has all the necessary competencies and equipment for the development of new grades of HPQ for the specific requirements of consumers.

RQ’s quality system : general principles Russian Quartz’s production plants are ISO 9001:2015 certified for production and enrichment of high- purity quartz concentrates by TUV NORD CERT GmbH (Germany) In addition to the ISO 9001: 2015 standards, Russian Quartz has developed and applied its own quality control procedures, allowing to control all parameters and aspects of the production of HPQ, from ore quality control to finished product storage and logistics to the consumer

RQ’s quality system: organization chart Chart of Quality System of Russian Quartz LLC knowledge HR Director Staff skills Plant managers motivation HR Director plants Plant managers environment Production Quality Director warehouses Head of procurement department technological processes Chief technologist Production process materials Head of procurement department equipment Chief engineer Quality Control of the Head of QC Department product

RQ’s quality system: traceability As a fundamental document for tracing the technological parameters of the production of HPQ for each of the grade a quality control chart is used

RQ’s quality system: traceability Based on the data defined in the Passport of finished products lot 12I0028/18 No. of finished product lot quality control chart, a passport Attritioning Flotation of lot of finished products is HF HF Т, ⁰ C pH Water volume, l Water volume Attritioning Time № К S О lot Date Shift for Conc. Volume drawn up for each lot indicating tank , № min attritioning, l conc,% 1 1 % l 1Ф1379/3 25.06.18 1 1 22,1 4,1 120 20 21,1 22 3,0 541,0 the technological parameters of Washing of intermediate product, dehydration lot production at each stage of Т, ⁰ C pH Time № К S О lot Date regime Water volume, l W, % Weight, kg min the production process and the 1ф1379/3 25.06.18 40 22 2600 5 14,4 412 quality characteristics of the Washing, dehydration Acid treatment HF Т of treatment, ºС Time. min Water Weight of finished product № К S О lot Date Regime Reactor , № рН W, % Time. min volume, charge, kg conc.,% Volume, l 30 60 l 1ф1379/3 26.06.18 412 3/20.04.18 1 32,5 120,0 43,90 46,80 90,00 6 10,6 60 2500 Magnetic separation Drying+calcination Packing Overall time, Drying line, Calcination Т of calcination, № К S О lot Date Drying furnace Т of drying , ⁰ C Magnetic separator Q, kg/h Type of packing Net weight, kg min № furnace. ⁰ C барабан 1ф1379/3 05.07.18 145 3 Xerion 730 RGQJ-90-12 1100 CG-180x 220 99,3 Bulk density, particle size distribution Fraction, Bulk density,g/ml Date of analysis Grade № of lot micron +180 micron +160 micron +150 micron +125 micron +100 micron +75 micron +56 micron 06.07.2018 RQ-2Ki 75-180 1,21 0,0 6,0 7,4 25,6 29,4 27,6 4,0 12I0028/18 Chemical analysis results Al B Ca Cr Cu Fe K Li Mg Mn Na Ni Ti 4,1 0,06 0,07 0,09 0,11 0,30 0,06 0,28 2,8 12I0028/18 0,01 <0,01 <0,01 <0,01 QC acceptance Date Product solution Person in charge Full name Signature 09.07.18 Accepted Popova L.I. Chief technologist _____________________________________ Head of QC Dept ___________________________________________ ______________________________ Deputy Head of WPP on production