2018/5/30 Overview of Kazchrome 15-18 Apr 2009

Contents Kazakhstan is rich in Chromium Resource Introduction of ENRC Structure of Kazchrome Introduction of Ferrochrome

Kazakhstan is Rich in Chromium Resource Share of world mineral reserves Source: National Bank of KZ, USGS

2018/5/30 1. Overview of ENRC Group

Overview of ENRC Group Structure of ENRC Group Advantages in ENRC Group

Structure of ENRC Group Sales & Marketing Ferroalloys Alumina & Aluminium Iron ore Logistics Energy Kazchrome Zhairem GOK Serov Ferroalloys Chromium ore Manganese concentrate Iron-Manganese concentrate Electric Power Coal Iron ore concentrate Iron ore pellets Hot briquette iron (from 2010) Alumina Aluminiu Gallium Forwarding Railway track construction and repair Cars and locomotives repair Products

Introduction of ENRC Group 2018/5/30 Introduction of ENRC Group World’s largest chrome producer by chrome content World’s lowest cost ferrochrome producer (Heinz H. Pariser) Large reserve base >40 years mine life Integrated business from mining to sales and marketing Positioned to realise premium pricing to a diversified customer base Location provides efficient, low cost access to growing Chinese market Diverse product range including special ferroalloys grades

ENRC -- World No.1 FeCr Producer (kt) 2006 2007 2008 Production Chrome ore 3,410 3,687 3,629 HC FeCr 963 1,070 1,054 L/MC FeCr 77 77 142 FeSiCr 104 126 156 Ferroalloys World’s largest ferrochrome producer (by chrome content)

2. Introduction of Kazchrome 2018/5/30 2. Introduction of Kazchrome

Introduction of Kazchrome Structure of Kazchrome Overview of Plants Recent Production from Kazchrome High Quality of FeCr Products World Lowest Production Cost

Kazchrome Structure Kazchrome Donskoy Cr Ore Kazmarganets Mn ore Aksu HC FeCr FeSiCr SiMn FeSi Aktobe LC FeCr MC FeCr

Ferrochrome – asset profiles 2018/5/30 Ferrochrome – asset profiles Mines Processing plants Donskoy Aksu Aktobe Kazmarganetz Donskoy is the world‘s largest chrome mine. Both opencast and highly mechanised underground operations, the mine produces around 4 million tons per annum of chrome ore. Aksu has 26 furnaces and produces around 1Mt per annum mainly standard high carbon ferrochrome . Aktobe has 16 furnaces and produces around 300Kt of more specialised grades.of alloy. Aksu is one of the world’s largest ferrochrome smelting facilities and produces a wide range of ferroalloys to meet demand for speciality and niche products Aktobe produces high, medium and low carbon ferrochrome products and benefits from an on-site power station (135 MW) Donskoy is a world class operation producing high grade, high quality chrome ore Zhairem and Kazmarganetz mine manganese ore and produce manganese concentrate

High Quanlity of FeCr Products Standard Grades of High-Carbon Ferrochrome Elements Grade 600 650 800 850 900 950 Cr (%min) 69.66 70.09 69.78 69.83 69.84 69.85 Si (%max) 0.86 0.82 0.88 0.67 0.61 0.79 C (%max) 5.54 6.63 7.52-7.79 8.26 8.82 9.42 S (%max) 0.021 0.026 0.035 0.027 0.022 0.013 P (%max) 0.036 0.012-0.028 0.025

High Quality of FeCr Products Standard Grades of Low/Medium-Carbon Ferrochrome Elements Grade 10 15 25 100 200 Cr (%min) 71.98 71.41 71.24 70.63 70.12 Si (%max) 0.82 0.73 0.94 0.64 0.62 C (%max) 0.09 0.122 0.16 0.69 1.72 S (%max) 0.020 P (%max) 0.024 0.023

Comparison of Production Cost 2018/5/30 Comparison of Production Cost This graph shows the Chinese production cost is the least favorable while KazChrome enjoys the lowest production cost as it benefits from the total vertical integration of having its own coal, power generation and ore. China is far from enjoying a competitive production cost, compared with integrated producers in Kazakhstan and South Africa. Meanwhile, ENRC is a perfect strategic partner to the Chinese market, with the most competitive production cost, shortest distance and effective logistics.