August 2018 Company Profile AECC, JSC is a State Corporation - PowerPoint PPT Presentation

Project name : « Renewal of potassium bifluoride production » Project operator: AECC, JSC Project manager: Oleg Vladislavovich Osipenko, tel. +7 (395) 559-96-02 Project administration: Yuri Aleksandrovich Dyakovich, tel. +7 (395) 559-96-04 August 2018

Company Profile AECC, JSC is a State Corporation “Rosatom” company which is a part of the uranium conversion and enrichment complex of Fuel Company “TVEL” Uranium enrichment Year established 1957 Uranium conversion Uranium Uranium hexafluoride enrichment Main businesses concentrates services processing Production of fluorine-based products Nuclear Fuel Uranium hexafluoride, an intermediate Fuel fabrication Cycle Nuclear products product for commercial nuclear fuel Uranium fabrication Power generation mining Potassium bifluoride Anhydrous hydrogen fluoride (HF) Fluorine products Triflic acid Triflic anhydride Annual revenues in 5.3 billion rubles (86.9 mil. USD) 2016 Personnel Approx. 1000 people Angarsk, Irkutsjk Region, Russia Location 150 km from Lake Baikal 2

Development strategy Larger share on international markets Strategic goals of Reduction of product costs and processes completion time Rosatom Corporation New products for domestic and foreign markets Development of the 2 nd business kernel: Strategic goals of TVEL - Exponential growth of company’s revenues by the year 2030 Strategic goals of AECC 1 to 3 Years – Development of 5 to 7 Years – Production capacity 15 to 20 Years – Establishment of growth, expanding product a global competitive non-nuclear technologies and start-up of non- nuclear products portfolio. company 3

History 1957 Commissioning of Phase I of the gaseous diffusion uranium enrichment plant of Angarsk Electrolysis Chemical Complex. 1963 Commissioning of all industrial facilities of AECC: uranium conversion plant, enrichment plant and all supporting infrastructure. 1974 Full renovation of uranium conversion plant completed. New process equipment developed and commissioned. 1995 Gaseous diffusion uranium enrichment technology fully replaced with gas centrifuge technology. Switching to new technology resulted in substantial increase in throughput while drastically reducing the environmental footprint 1996 Operation of Triflics Plant commences to produce Trifluoromethanesulfonic acid and Trifluoromethanesulfonic anhydride. 1997 Commercial production of R-14 refrigerant commences. International Uranium Enrichment Center is established at the AECC site under the aegis of International Atomic 2007 Energy Agency (IAEA) AECC and other conversion and enrichment plants of Russia become affiliates of Fuel Company “TVEL”. 2010 2014 Uranium conversion plant shut down. Triflics plant operation resumed. 2016 2018 2018 Potassium bifluoride (PBF) plant operation resumed. 4

Prospective businesses based on the Chemical Plant infrastructure Potassium bifluoride production Renewal of potassium bifluoride production. Anhydrous hydrogen fluoride production Renewal of anhydrous HF production. Lithium hydroxide production Lithium hydroxide monohydrate production using electrochemical conversion of lithium salts. Elegas (sulfur hexafluoride) production Renewal of elemental fluorine production and start-up of SF6 production. Triflics production Renewal of trifluoromethanesulfonic acid and anhydride, production of triflic derivatives Artificial quartz crystals production Artificially grown high-purity quartz crystals production (250 MT/a) – a joint venture with Germany-based company. 5

Project location Angarsk, Russia PBF plant AECC production site Potassium bifluoride (PBF) plant is located in “Electrolyte Recovery Building (ERB)” which is a part of Uranium Conversion Plant infrastructure. ERB is equipped with all equipment and engineering networks including industrial sewage and air ducts to the central gas cleaning station required for plant operation. ERB is not included in Nuclear Facility and does not require decommissioning as part of Uranium Conversion Plant shut-down. 6

Product and technology of the Project (1/2) Product: potassium bifluoride (KF × HF) complying with GOST 10067-80 (PBF). K ОН KF neutral Concentrated KF neutral K ОН water solution solution solution Н 2 О Dissolution of КОН in water Acidic mother Neutralization of mother liquor with Concentration (evaporation ) of К F neutral liquor КОН water solution solution (t=105-120 C ° ) HF KF × HF KF × HF wet KF × HF Solution with KF × HF crystals crystals solution Drying of Filtration and obtaining KF × HF wet KF × HF wet Crystallization of Saturation of К F neutral crystals and acidic mother liquor crystals KF × HF (t=25 C ° ) solution with hydrogen fluoride 7

Product and technology of the Project (2/2) Product: potassium bifluoride (KF × HF) complying with GOST 10067-80 (PBF). Standard Description Grade «Ч» Grade «Ч.Д.А.» Mass fraction of potassium bifluoride (KF × HF), % 98-102 99-101 Mass fraction of chlorides (Cl), %, max. 0,01 0,005 Mass fraction of sulfates (SO 4 ), %, max. 0,02 0,01 Mass fraction of iron (Fe), %, max. 0,004 0,001 Mass fraction of silicon (Si), %, max. 0,02 0,01 Mass fraction of lead, copper and manganese (Pb+Cu+Mn), %, max. 0,001 0,001 Production of PBF at AECC Capacity – up to 120 tpa Experience – more than 30 years Plant renovation completed in 2010 – the most up-to-date plant in Russia 8

Project implementation structure Equipment suppliers Russian market Sales Supply of steam generator and lab equipment AECC, JSC • Investment project implementation TVEL, JSC • Production of PBF Project coordination Supply of КОН Supply of HF Raw materials Sales suppliers World market 9

Target market overview Elemental fluorine (F 2 ) is only commercially produced using Production of 1 electrolytic method . It is the most cost-efficient method employing elemental fluorine HF decomposition using KF*2HF as electrolyte. Etching – cleaning metal and alloy surface from oxides, rust, grease 2 Etching agent in the and other contaminants. production of aircraft An important use in aerospace industry is the removal of ceramic rods from turbine blades in melted potassium bifluoride 2) . engines Treatment of glass with fluorine-containing compounds results in 3 Glass etching for formation of insoluble chemical films creating “frost” effect which can “frost” effect vary depending on exposure duration and agent concentration. Flux in steel making is a group of inorganic substances added to the ore to facilitate separation of metal from gangue and decreases 4 Flux component melting temperature. In welding, flux is a special material that has protective and cleaning properties. In soldering, flux is a material that removes oxide from the surface of soldered parts and decreases surface tension. 10

Organizational structure of the project Management (direct decision-makers) A. Dudin A. Kamashev General Director Director AECC JSC Department of TVEL JSC ▪ ▪ Project Curator Project Sponsor Team A. Trubin O. Osipenko Yu. Dyakovich Chief Specialist Leading specialist Head of Marketing Group TVEL JSC Special Design and technology Special Design and Technology Section Section AECC, JSC AECC JSC ▪ ▪ ▪ Project Manager Project Coordinator Project Administrator A. Masovetz E. Akkuzin N. Shishkina (Ms.) Investment planning Foreman Leading economist in specialist Chemical Plant Facility finance planning AECC JSC AECC JSC AECC JSC ▪ ▪ ▪ Investment analysis Expert Financial analysis 11

« Angarsk Electrolysis Chemical Complex » , JSC Building 100, Block 2, South Estate, Angarsk, Irkutsk Region 665804 Russia Telephone: +7 (335) 554-44-34 (Russian), Telephone: +7 (335) 559-97-20 (English) Fax: +7 (335) 554-00-00, e-mail: aecc@rosatom.ru, triflic@aecc.ru