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

SChelyabinsk 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 175SiO2

Year-round operations

> 30years

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 beensuccessfully used as a raw material for different applications

Vein 175 as a source of HPQ for semiconductor applications

▪ Vein №175 has natural quartz with uniqueproperties combination (like minimum B & Pcontent, the lowest Al, Alkali, Cu, Ni, Cr, Fecontent, low bubbles and mineral inclusionscontent).

▪ After purification total sum of impurities ingrades RQ-2K/1K less than 10 ppm that allowto use quartz from this vein in all applicationswhere quartz glass products are needed.

▪ The chemical and mineralogical composition ofquartz ore and HPQ produced from it, isunchanged in the entire volume of the vein175, which allows consumers to rely on theconsistently high and stable quality of Russianquartz products

▪ In 2014, an international company IMC Montan audited vein 175 and confirmed the resources of quartz orein the amount of more than 500 thousand tons

▪ For the organization of stable operation and reliability of supplies to consumers, the Company maintainsthe level of ore reserves at the warehouse sufficient for the smooth operation of the company for 9months. 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 ofthe mine and the stable qualitative characteristics of HPQ produced from this quartz ore. As an example, theaverage values of the chemical composition of the grade RQ-2K for the period 2014-2018 are given in thefollowing 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 theenrichment technology of Russian quartz, while the quality of the ore itself remains consistently high

RQ’s products

GradeSum of impurities,

no more thanApplication

RQ-3K <12 ppmQuartz 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 ppmCzochralski crucibles for PV industry,

quartz tubes and ingots, quartz lighting

RQ-2Ki <9 ppmCzochralski crucibles for PV and semiconductor industry (inner

layer), large diameter quartz tubes and ingots

RQ-1К <9 ppmRQ’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 thenecessary analyzes to assess the quality of ore and finished high-purityconcentrates, 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 plantsare 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 LLCQ

uality

Directo

r

Sta

ff

knowledge HR Director

skills Plant managers

motivation HR Director

Pro

duction

environm

ent plants Plant managers

warehouses Head of procurement department

Pro

duction p

rocess 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 of 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

Passport of finished products lot

No. of finished product lot 12I0028/18

Attritioning Flotation

№ КSО lot Date ShiftAttritioning

tank, №

HFWater volume

for attritioning, l

Timemin

HF Т, ⁰C pH Water volume, l

Conc.%

Volumel

conc,% 1 1

1Ф1379/3 25.06.18 1 1 22,1 4,1 120 20 21,1 22 3,0 541,0

Washing of intermediate product, dehydration

№ КSО lot Date regimeTimemin

Т, ⁰CWater volume, l

pH W, % Weight, kg

1ф1379/3 25.06.18 40 22 2600 5 14,4 412

Acid treatment

Washing, dehydration

№ КSО lot DateWeight of charge, kg

Regime Reactor, №

HF Т of treatment, ºС Time. min

рН W, % Time. minWater

volume, lconc.,% Volume, l 30 60

1ф1379/3 26.06.18 412 3/20.04.18 1 32,5 120,0 43,90 46,80 90,00 6 10,6 60 2500

Drying+calcination

Magnetic separation

Packing

№ КSО lot DateOverall time,

minDrying line,

№Drying furnace Т of drying, ⁰C

Calcination furnace.

Т of calcination, ⁰C

Magnetic separator Q, kg/h Type of packing Net weight, kg

1ф1379/3 05.07.18 145 3 Xerion 730 RGQJ-90-12 1100 CG-180x99,3

барабан 220

Bulk density, particle size distribution

Date of analysis Grade № of lotFraction, micron

Bulk density,g/ml+180 micron +160 micron +150 micron +125 micron +100 micron +75 micron +56 micron

06.07.2018 RQ-2Ki 12I0028/18 75-180 1,21 0,0 6,0 7,4 25,6 29,4 27,6 4,0

Chemical analysis results

Al B Ca Cr Cu Fe K Li Mg Mn Na Ni Ti

12I0028/18 4,1 0,06 0,07 0,01 <0,01 0,09 0,11 0,30 0,06 <0,01 0,28 <0,01 2,8

QC acceptance

Date Product solution Person in charge Full name Signature

09.07.18 Accepted Popova L.I.

Chief technologist _____________________________________

Head of QC Dept ___________________________________________

Deputy Head of WPP on production ______________________________

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

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