NIKOCHEM CORPORATION Touch the future. Together MAGNESIAL BUSINESS DEVELOPMENT
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1 NIKOCHEM CORPORATION Touch the future. Together MAGNESIAL BUSINESS DEVELOPMENT
2 About Nikochem Companies location Russian Federation. Volgograd. It s the most suitable place for Mg compounds production Nikochem group structure JSC Kaustik production of caustic soda ( tpy), chlorine ( tpy), PVC ( tpy), soft cable and shoe compounds, sealants of PVC-compositions ( tpy) and related Kaustik Europe B.V. EU sales and representation. Nikopharm pharmaceuticals production NikoMag Magnesials production and development
3 Bischofite. Growth perspectives NikoMag develops 2 deposits in Volgograd region 1,5 km Existed State license provides the right to use Svetloyarsky bischofite deposits till 31-st December 2029 year Block B Block A Approved volume of deposit is calculated as 50 mln ton of MgCl2*6H2O Infrastructure of brine field is prepared for bischofite mining Three wells are already prepared for bischofite leaching: one is in active operation since 2005 at range of 40 m3/h the second and the third are stand by for expanded operation Narimanovskoye deposit (same capacity) was acquired in 2012
4 Bischofite specification Denomination Index value of Svetlojarsky bishofite sample 1 Density at 20 С, g/сm 3 1,305 2 рн value 5,2 3 Fraction of magnesium Mg 2+ total mass %, or calculated on MgCl 2, % 4 Fraction of bromine Br -, total mass % or calculated on MgBr 2, % 5 Fraction of chlorine-ion Cl - total mass, % 24,6 6 Fraction of sulphates SO 4 2- total mass, % or calculated on MgSO 4, % 8,25 32,3 0,53 0,61 0,03 0,038 7 Fraction of iron total mass, % 0,001 8 Fraction of calcium Ca 2+ total mass, % 0,01 9 Fraction of carbonates CO 3 2- total mass, % 0, Fraction of bicarbonates HCO 3 - total mass, % 0, Fraction of boron B total mass % or calculated on B 2 O 3,% 0,006 0, Fraction of sodium Na + (К + ) total mass, % 0,11 (0,06) 13 Fraction of suspended matters total mass, % non
5 Our products are our pride tpy for MgCl 2 *6H 2 O flakes and prills Another tpy line shall be erected by November 2013
6 From basis to the newest Non-FR compounds are outlaw in RF No high quality MDH producer in RF Growing special steel/rubber applications No high quality MgO producer in RF Sustainable growth of local consumption and import tpy MH and tpy MgO production project Competitive cost price and product quality Availability of own raw materials of top quality Low labor, energy, transport cost Newest technologies applied Well-developed infrastructure, good logistic
7 Partnership and development Rusnanotech is state-owned Company targeting to credit and to support Russian projects of nano-technologies The project of magnesium hydroxide production plant erection in Volgograd was approved by Supervisory Council of Rusnanotech on The Project is financed on parity basis NikoMag s appointed to be owned project Company Facilities startup is scheduled in 2013 The project is supported by the government
8 Chemistry behind Caustic soda Caustic precipitation process MDH Bischofite MgO Own raw materials available Top quality project products
9 Parameter denomination MgO specification Specification Application Chemicals Transformer steels Rubber Pharmaceutical Food Magnesium Oxide as MgO (by difference) 99.5% min 99.5% min 99.5% min 99,5% min 99.5 % min Calcium as CaO 0.15% max 0.20% max 0.10% max 0.10% max 0.20 % max Silicon as SiO % max 0.02% max 0.02% max Iron as Fe 2 O % max 0.020% max 0.02% max 0.02% max Arsenic as As < 3 ppm < 3 ppm Lead as Pb < 0.3 ppm < 0.3 ppm Aluminium as Al 2 O % max Chloride as Cl 0.10 % max 0.03% max 0.10% max 0.05% max 0.05% max Sulphate as SO % max 0.20% max 0.15% max 0.20% max Sodium as Na 0.03% max 0.02% max Potassium as К 0.005% max Loss on ignition 0.8% max 4.0% max 2.0% max 2.0 % max Surface area (BET) m 2 /g (citric acid activity) m 2 /g Bulk Density(10 taps) g/cc 0.21 g/cc 0.45 g/cc max 0.48 g/cc min Particle size: passes 325 mesh (wet sieve) 25.0 % max 99.5% min 99.9 % min 99.0 % min 90.0 % min
10 MgO applications Medicine Transformer steel Food Rubber
11 MDH specification Parameter denomination Parameter index Grade А 1) Grade М7 2) Grade М10 2) 1 Mass part of magnesium hydroxide, %, not less than 99,5 97,5 97,5 2 Mass part of drying loss (105 С), %, not more than 0,3 0,3 0,3 3 Mass part of iron (calculating on ferric oxide), %, not more than 4 Mass part of calcium (calculating on calcium oxide), %, not more than 0,01 0,01 0,01 0,15 0,20 0,20 5 Mass part of chloride-ion (Cl - ), %, not more than 0,10 0,10 0,10 6 Mass part of silica (SiO 2 ), % not more than 0,05 0,08 0,10 7 Mass part of sulphate, %, not more than 0,10 0,20-8 Mass part of Aluminum trioxide (Al 2 O 3 ), %, not more than 0,05 0,10-9 Mass part of sieve 0045 remain, %, not more 0,1 0,2 0,2 Size does matter Size distribution and specific surface controlled strictly. 10 Loss on calcination 1000 С, %, about 30,0-33,0 30,0-33,0 30,0-33,0 11 Bulk weight, g/сm 3, not less than 0,40 0,40 0,40 12 Oil number, g/100 g of magnesium hydroxide, not more than ) Grade А magnesium hydroxide without special treatment. 2) Grades М7 and М10 are produced by surface treatment of magnesium hydroxide (base substance mass part not less than 99,0 %) by different modifiers. Notification depending on customer s requirement the next: -Specific surface BET index may be evaluated at NOVA 2200 е upon agreement with the customer (norm for M7 is 5-8 m 2 /g, norm for M10 is 8-15 m 2 /g) 13 Granulometric composition d 10 d 50 d 90 Aspect ratio, not less : : :25
12 MDH applications Medicine HFFR Food REACH registered Chemicals
13 Project time schedule (conservative)
14 Our facilities MDH pilot plant installed Synthesis/treatment Separation Packing Drying/milling Representative samples available now Combined polymerization and MDH introduction process. Processing 20 %, thermal stability 50 % higher RD tailor-made cooperation is welcome Repulping
15 Our facilities Main plant is under construction Products firstly available in the second half of 2013
16 Strategic developments Fused magnesia is coming tpy fused magnesia Mass balance trials are carried out Basic engineering is negotiated Cooperation is welcome
17 Goals to reach To occupy Russia and CIS MDH/MgO markets To become TOP MDH/MgO producer globaly To develop the Group magnesial business To cooperate with reliable partners to reach mutual goals and to optimize mutual benefit
18 Growing with Good Viking is an excellent merchant Find out what market needs Don t promise what you can t keep Don t demand overpayment Arrange things so that you can return Stay merchants. Be Vikings!
19 Touch the future. Together THANK YOU VERY MUCH FOR TIME AND ATTENTION Larisa Sukhorukova Nikochem CFO Vladimir Khodyrev Kaustik Europe B.V. Director Sergey Tataurov Kaustik Sales Director
JSC "NIKOMAG" STRATEGIC DEVELOPMENT PLAN
GROUP OF COMPANIES NIKOCHEM ABOUT THE COMPANY JSC "NIKOMAG" was founded in 2006 in order to make a separate direction of the integrated bischofite processing program being realized within Group of Companies
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