of an industrial cluster

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1 Project of the foundation of an industrial cluster in the Nether-Polar Urals Presentation of the project

2 The industrial cluster foundation is one more stage of the development of the Ugra Industrial Corporation, one of the largest holdings of Russia comprising 25 companies specializing on the maintenance of oil and gas enterprises, geological exploration and extraction of solid commercial minerals and hydrocarbons, projecting and construction of roads, erections and buildings of various purposes.

3 Location of the industrial cluster the Nether-Polar Urals (Beryozovsky District of the Khanty-Mansiysk Autonomous Okrug-Ugra village Saranpaul). Taking into consideration infrastructural limitations of the area, the construction of the road Saranpaul - river port of the river basin of the Ob, is an obligatory preliminary task without implementation of which the foundation of the cluster is impossible.

4 Komi Republic Saranpaul Beryozovo Igrim Direction Saranpaul Igrim km

5 Komi Republic Copper-zinc mining and processing combine Oil and gas processing Ballast quarry + crushing and grading complex Cement plant+derivatives Саранпауль The core of the industrial cluster (village Saranpaul) Titanium-zirconia sands (mining and processing combine) Stone-cutting plant+building materials plant Beryozovo Electricity and heat generation Basalt ores processing plant Igrim Logistics center

6 The cluster will provide not only an accelerated development of mineral and renewable resources of the Beryozovsky District, but also their deeper conversion into end products Amount of investments to the cluster foundation billion RUB Budget contributions to the regional and municipal finances more than 1 billion RUB Sales volume more than 55 billion RUB/year Payment instruments for the construction of the road and a cargo berth approximately 47 billion RUB Hydrocarbons extracted and processed by the cluster will provide it with complete energy independence, allow significantly streamline the cost of power-intensive processes and, as a result, reduce the prime cost of the end product. Excess of energy sources will be disposed among populated areas and enterprises of the district

7 All the enterprises of the cluster are targeted at the deepest possible conversion of mineral resources of the local deposits The hard-surface motorway will function all the year round Logistics center is capable of accumulating all the produced building materials and POL within 6 months of uninterrupted production for providing non-stop supplies in the navigation season The Saranpaul airport can accommodate small aircrafts The haulage company will provide the all-year overland haulage of goods to the Transport and Logistics hub of the port. It will allow deliver goods in full by water over a limited period of the river navigation

8 OJSC SosvaPromGeologiya village Saranpaul; exists since ~ Stuff composition 550. During seasonal works more than Geological exploration and extraction of hard commercial minerals and crude hydrocarbons (natural gas and oil). Extraction: natural gas (methane) site Gorniy. Gas and oli sites Vostochno-Saranpaulskiy and Severo-Saranpaulskiy Quarry and crushing and grading complex for ballast production (gabbro and diorite) + quarry of marmolized limestone Ultrapure quartz mine Puyva Sites of gold and platinum extraction: Kosumnerskiy, Zolotoshorskiy, Manyinskiy and others Sites of extraction of zeolites, ferrites, chromites and copper-zinc ores. The process of geological exploration comprises core and cable-tool drilling, surface and underground excavations, topographic-geodesic, geophysical and geochemical works, laboratory studies etc.

9 Cement plant: Estimated capacity up to 3 mln tonnes of cement per year Annual turnover of the plant 15 billion RUB Potential customers: Special cements: aggregate consumption by petroleum companies in the Khanty-Masiysk Autonomous Okrug Ugra about 1.2 mln tonnes per year; Construction cement: cities up the stream: Nizhnevartovsk, Megion, Langepas, Surgut, Nefteyugansk. Down the stream Yamalo-Nenets Autonomous Okrug. Aggregate consumption about 1.1 mln tonnes per year. Estimated investment about 10 billion RUB Method of cement making dry. Peculiarities of its realization will be defined at the stage of preparation of the pre-project documentation Production start-up will take 3-4 years

10 Ballast quarry + crushing and grading complex: Open-pit mining Estimated capacity up to 3 mln tonnes per year Annual turnover 4.5 billion RUB Total capital investments mln RUB Production star-up will take 3-4 years Mobile screening and crushing units and a crushing mill are put together in Russia partially from European components A project for recultivation of the lands destructed by mining works is provided The workshop of stone sawing, working and dressing will be involved into finishing materials production (tile, borders, paving blocks)

11 Basalt plant: Capacity cubic meters of basalt fibre per year Annual turnover 1.2 billion RUB Capital investments in the light of specific features of the location of the plant 1.2 billion RUB Two-stage technology: ore heat-treating electric furnace for basalt smelting and the line of mafic melt blowing and forming of thermal-insulating articles from the basalt fibre produced by blowing Involving of European technologies and experiences of the companies Basalt Fiber & Composite Materials Technology Development Ltd. are planned Production flexibility will provide all the product nomenclature: super-thin fibre STBF (basalt super-thin fibre), thin fibre TBF (basalt thin fibre) and continuous basalt fibre CBF (basalt continuous fibre)

12 Сopper mining and processing combine + copper smelting combine: Capacity tonnes per year Annual turnover of the combine 16.2 billion RUB Capital investments approximately billion RUB Included: Mining subdivision; Vehicle pool meant for delivery of the mined ore to the dressing plant. The ore can be delivered through different transport systems and types of transport including: highway transport, conveyor transport, a cableway, ore passageways; The subdivision of the recovered mineral products processing oreprocessing plant; Total production subdivisions: power utilities, mechanical repair department, other required subdivisions ; Copper smelting subdivision combine.

13 Logistics center Location river port of the Ob river basin Freight turnover up to 8 mln tonnes per year Tank farm up to 1 mln cubic meters The required transport support (no less than): Road 120 units of tipper machinery and up to 60 units of specialized machinery; Water 100 hopper barges with the tonnage of tonnes each and 50 push tugs; Air 15 small aircrafts (helicopters and planes with the capacity up to 3 tonnes).

14 Economic diversification of the region Competitive growth of the industrial sectors of the region Import substitution and reducing of dependence on the imported products Creation of of new jobs, 700 of which are highlyqualified Transport infrastructure development of the region in the Nether-Polar Urals Improving of the investment climate of the region

15 Abundant natural resources of the Nether-Polar Urals and high innovative industrial technologies begin to create a significant alternative of the oil and gas industry of the region! Thank you for attention