1. 2018/5/30
Overview of Kazchrome
15-18 Apr 2009

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

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

4. 2018/5/30
1. Overview of ENRC Group

5. Overview of ENRC Group Structure of ENRC Group
Advantages in ENRC Group

6. 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

7. 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

8. ENRC -- World No.1 FeCr Producer
(kt)
Production
Chrome ore 3,410 3,687 3,629
HC FeCr , ,054
L/MC FeCr
FeSiCr
Ferroalloys
World’s largest ferrochrome producer
(by chrome content)

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

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

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

12. 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

13. 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
8.26
8.82
9.42
S (%max)
0.021
0.026
0.035
0.027
0.022
0.013
P (%max)
0.036
0.025

14. 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

15. 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.