Inner Mongolia Baotou Steel Rare Earth Magnetic Materials Corporation Limited

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1 Inner Mongolia Baotou Steel Rare Earth Magnetic Materials Corporation Limited

2 Content 1.Company Introduction 2.Company Status and Development Plan 3Production Flowchart and Equipments 4.Quality Control and QC Management 5.Product Position 6.Environmental Protection 7.Technical Parameter Test Report 8.Production Site

3 1. Company Introduction Inner Mongolia Baotou Steel Rare Earth Magnetic Materials Co., Ltd(BGM)specializes in Sintering NdFeb Magnets and NdFeB Strip Casting Alloy which are all in high qualities. It is a wholly owned subsidiary company of Inner Mongolia Baotou Steel Rare Earth (Group) Hi-Tech Co., Ltd, with registered capital of RMB 176 million (USD million). The BGM s scale of production: By the end of 2012, its annual production will come up to 20,000-ton of NdFeB strip casting alloy and 6,000-ton of NdFeB magnets.

4 1.1Resource advantage Inner Mongolia Baotou Steel Rare Earth (Group) Hi-Tech Co., Ltd has abundant rare earth resources in the world, and a production line of 10,000-ton neodymium (and didymium) rare earth metal, which is the key reliable guarantee of the raw material of BGM`s NdFeB magnets.

5 1.2 Comprehensive strengths Inner Mongolia Baotou Steel Rare Earth (Group) Hi-Tech Co., Ltd has a solid team on scientific R&D, and administration, covering the fields of rare earth separation, metal preparation, research on functional materials and analysis & test of rare earths; a national class rare earth analysis & test center, and the largest research institution on rare earths in China, which are all the reliable basic guarantees.

6 1.3 Technical advantage Baotou Research Institute of Rare Earths, a subsidiary company of Inner Mongolia Baotou Steel Rare Earth (Group) Hi-Tech Co., Ltd, is the largest inspection center on rare earth in China, and built the first domestic production line of NdFeB magnets in The Institute achieved a world record of 52.2MGOe in the laboratory in Nowadays, relying on the mature NdFeB manufacturing technology of the Baotou Research Institute of Rare Earths, Inner Mongolia Baotou Steel Rare Earth Magnetic Materials Co., Ltd can put into steady production of the N54 magnets.

7 The Institute achieved a world record of 52.2MGOe in laboratory in In 1996, they undertook an international cooperation project with Mr. Zhaozhong Ding on α magnetic spectrometer, supplied high performance NdFeB magnetic materials for AMS project. They built the first pilot production line of high performance NdFeBmagnets in China.

8 In 2003, the Institute had accomplished a project of National Development and Reform Committee, a 300-ton annual output of high performance NdFeB magnets industrialization demonstration project, which turned the industrialization of high performance NdFeB magnets into reality in China. During 2000~2005, they constructed the First Domestic High Magnetic Materials Line.

9 1.4 Magnetic grade and magnetic property parameters

10 2. Company Status 1.Employees: 255 Management, R & D personnel: 108 Workers:147 2.Product Level : N54 Grade magnet in the highest grade in industry production can be manufactured successfully. 3.We undertake national key projects: "15,000 tons of high-performance NdFeB magnetic materials industry projects which is supported by the Ministry of Industry and Information Technology. 4.Business performance in 2010: Output (stripes+magnets): 1712 tons Sales Volume (Total): 1286 tons Sales Revenue:122 million(rmb) Value:163 million(rmb)

11 Development Plan Calendar year 2010 (T) 2011 (T) 2012 (T) 2013 (T) 2014 (T) NdFeB Magnets NdFeB Alloys

12 3.Production flowchart and equipments 3.1 Production flowchart Raw materials Charge mixture Metallographic Analysis Metallographic Analysis Strip casting melting alloy Coating Surface size test Hydrogen and Oxygen content testing sieve size testing Size distribution testing Magnet field intensity and pressure testing testing Pressure testing Hydrogen Decrepitating Pre milling Jet milling Mixing Sieving Pressing in magnetic field Isostatic pressing Surface Magnetic intensity and flux testing Coating thickness testing Physical properties testing PCT testing SST testing Magnetizing Density magnetic performance testing Sintering Packaging Heat aging Roughcast surface testing Roughcast size testing Magnetic performance testing testing Grinding/wire cut Surface treatment

13 3.2 Magnet production equipment Main Equipments Quantity Strip Casting Furnace 4 Medium Milling 2 Jet Mill 6 Mixer 4 Vibrating Screener 2 Magnetic Field Shaping Press 11 Isostatic Press 3 Vacuum Sintering Furnace 15 Magnetizer 2

14 3.3 Machining According to the features of products, we have built a machining line of processing big block, small pieces and special shape magnets. We can process high precision permanent magnetic components of variety shapes, like quadrate, round, tile shape and special shape,hollow magnet and rings. To ensure the quality and production capacity of the big block magnet for wind turbine, we have introduced 2 sets (6 machines) of continuous 3-work station pass-through grinding machine.

15 4. Quality control and QC management 4. Quality Policy With sophisticated technology to ensuring customer's satisfication; with excellent quality to producing dependable goods; with honest attitude to providing knight service.

16 4.2 Quality guarantee Our company is operating under ISO/TS management system currently. We have been certified in May By online and offline control to the products, we have realized quality control and inspection to the full procedure from raw material purchase to after sale service of our products.

17 4.3 Quality inspection instrument

18 4.4 Improving quality control Quality control in key procedures

19 We adopt CPK statistic analyzing method to analyze the key procedures, to improve and optimize the process, ensuring the stability in production and guarantee the stability and consistency of our products.

20 5. Product target The Sintering NdFeB Magnets in high quality(high Magnetic,High Consistency,High Stability) are mainly used in the high-end fields of wind power generation, nuclear magnetic resonance, permanent magnet motor,auto industry and so on. Besides, magnetic products that are developed by the company are also widely used in various motors, electro-acoustic field, instruments and medical equipments. Our products have excellent performances and different specifications. Moreover, we can design and produce products of special shapes or specifications according to customers requests.

21 5.1 NdFeB strip casting alloys Application and Market share Main products are NdFeB Strip Casting Alloys and NdFeB Magnets NdFeB Strip Casting Alloys are mainly supplied for the domestic manufacturer of the magentic products. Clients of NdFeB Strip Casting Alloys are below:dytch ANHDDX SHYZHB SHXHQ YTZHH YSM and other 6 domestic companies 3 Janpanese companies 1 European company

22 5.2 NdFeB Magnets Application and Market share The Sintering NdFeb Magnets in high quality(high magnetic, high consistency, high stability) are mainly used in the high-end fields of wing power generation, nuclear magnetic resonance, permanent magnet motor and motor vehicle, etc. Our main customers are XTDJ DFDJ GXYH BJWD XBBW SIEMENS LAFERT S.P.A.. We are on our way to pass the audits for suppliers from Continental BOSCH Brose BMW etc.

23 6. Environmental protection Environmental protection is emphasized in each link of our production. Energy saving emission reduction is our long and persistent target. Alloy raw materials and other auxiliary raw materials do not contain prohibited compositions. We use clean electricity power. No harmful gas is generated. Water is recycled. The alloy wastes that produced during the magnet production and processing are sold to the company that specializes in the recycle rare earths. And we have got the certificates of ISO14001.

24 7. Technical parameter test report UH Magnetic property B-H curve of 38UH magnet ( )

25 7.2 Weight loss report

26 不可逆磁通损失,% 7.3 Flux irreversible report Flux irreversible loss test report of 38UH magnet 温度, ф10 1 样柱 ф 10 2 样柱 ф 10 4 样柱 ф 10 7 样柱

27 7.4 Property test report of surface protection coat Heat resistance test report Anti-salt spray test report (SST)

28 Strip casting furnace

29 Jet mill

30 Magnetic field shaping press

31 Sintering furnace

32 Magnetic performance inspection instrument

33 machining line

34

35 Thanks for your attention!

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