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-1К; 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

С

Ю

N S

Chelyabinsk region

Moscow Chelyabinsk Kyshtym

100 km

• railway
• road

Wet Processing Plant (WPP) in Kyshtym (Wet Processing Site) Underground mine at the vein 175 and Dry Processing Plant (DPP) near to the quartz deposit (vein 175) (Dry Processing Site) 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:

Resource base

Main source of raw quartz – vein 175 SiO2 Year-round operations

> 30

years Reserves of vein 175 more than 500 000 MT (more than 30 years of Company life) More than 1 million MT of quartz reserves for different applications ▪ 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 – 20km2. ▪ 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

• re

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 2014 5 0,08 0,33 0,03 0,01 0,35 0,2 0,3 0,1 0,01 0,41 0,01 3 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

Grade Sum of impurities, no more than Application RQ-3K <12 ppm Quartz lighting, including automotive xenon, halogen and HID lamps, outer layer of crucibles for photovoltaic industry RQ-2Kf <10 ppm Large diameter quartz tubes and ingots RQ-2K <10 ppm Czochralski crucibles for PV industry, quartz tubes and ingots, quartz lighting RQ-2Ki <9 ppm Czochralski crucibles for PV and semiconductor industry (inner layer), large diameter quartz tubes and ingots RQ-1К <9 ppm RQ’s grade after chlorination process, developed for Czochralski 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 Quality Director Staff knowledge HR Director skills Plant managers motivation HR Director Production environment plants Plant managers warehouses Head of procurement department Production process technological processes Chief technologist materials Head of procurement department equipment Chief engineer Quality Control of the product Head of QC Department

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 quality control chart, a passport

• f lot of finished products is

drawn up for each lot indicating the technological parameters of lot production at each stage of the production process and the quality characteristics of the finished product

• No. of finished product lot

• Time. min

• Time. min

______________________________

RQ’s quality system: SPC & PCN

In order to arrange continuous monitoring of production processes and product quality, Russian Quartz uses the SPC methodology to estimate deviations using the “3-sigma”

• method. At the same time, the average

values (CL) and tolerances (UCL / LCL), which are updated annually on the basis of accumulated statistics, are established for each grade.

0,05 0,1 0,15 0,2 0,25 0,3 0,35 0,4 0,45 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67

RQ-2K (Fe,ppm)

Spec (Fe) UCL (Fe) CL (Fe) LCL (Fe) Actual (Fe)

SPC data Grade: RQ-2K Period: 2018 Grade/RQ-2K Al B Ca Cr Cu Fe K Li Mg Mn Na Ni Ti UCL 4,5 0,11 0,28 0,01 0,013 0,33 0,23 0,33 0,17 0,010 0,44 0,01 3,2 CL 3,9 0,08 0,13 0,01 0,010 0,18 0,14 0,30 0,11 0,010 0,29 0,01 2,9 LCL 3,3 0,05 0,01 0,01 0,001 0,03 0,05 0,27 0,05 0,001 0,14 0,01 2,6

In the event of a significant change in product/process parameters, the Company uses the PCN consumer notification procedure.

RQ’s quality system: SPC & PCN

Russian Quartz LLC

Address: 3, Kaslinskoye highway, Kyshtym, Chelyabinsk region, Russia, ZIP code: 456870 tel.: +7 (35151) 4-38-45 fax: +7 (35151) 4-38-48 e-mail: info@russianquartz.ru Web-site: http://russianquartz.com/