NON-FERROUS METALLURGY - Invest in Russia · 2014. 12. 18. · ZINC MINING IN RUSSIA IS CONTROLLED...

NON-FERROUS METALLURGY:ZINCFACTS AND FIGURES

2014

ABOUT THE RUSSIAN DIRECT INVESTMENT FUND

The Russian Direct Investment Fund is a $10 billion fund established to make equity investments primarily in the Russian economy.

RDIF was created in 2011 under the leadership of the President and Prime Minister of Russia to co-invest alongside top global investors, acting as a catalyst for direct investment in Russia. RDIF together with its co-investors invested and committed over $7 billion for this purpose, of which RDIF alone invested $1.3 billion and over $6 billion came from the leading international co-investment partners.

RDIF also attracted over $15 billion of foreign capital into the Russian economy through long-term strategic partnerships.

RUSSIA IN THE GLOBAL ZINC INDUSTRY

I

6 WWW.INVESTINRUSSIA.COM

RUSSIA IN THE GLOBAL ZINC INDUSTRY

ZINC RESERVES IN RUSSIA ACCOUNT FOR 9% OF GLOBAL ZINC RESERVES. RUSSIA ACCOUNTS FOR ABOUT 3% OF GLOBAL ZINC PRODUCTION

Ranking of countries by zinc reserves

2013, mln tonnes*

Global Zinc mining: leading countries2013, mln tonnes*

* Source: USGS data ** Zinc reserves of the Russian Federation recorded in the National Register

1.1

1. China 2. Australia 3. Peru 4. India 5. USA

5 1.4 1.3 0.8 0.76 0.6 0.3

6. Mexico 7. Russia

3. China1. Australia 5. Peru 6. India 7. USA4. Mexico2. Russia

64 60.3**

4324

18 11 10

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1.2 CHELYABINSK ZINC PLANT (RUSSIA) IS IN THE GLOBAL INDUSTRY TOP 10

2013, % of global zinc production

1. Hindustan Zinc.

India

16.72. Glencore-

XtrataSwitzerland

10.3

3. Teck Resourses Ltd

Canada

6.7

8. Chelyabinsk Zinc Plant

Russia

>25.6

4. Minemetals resourses Ltd

China

RUSSIAN ZINC INDUSTRY: CURRENT ISSUES AND TRENDS

II


ZINC MINING IN RUSSIA IS CONTROLLED BY TWO INDUSTRY LEADERS: UCHALINSK MINING CO. AND UMMC

2.1

RUSSIAN ZINC INDUSTRY: CURRENT ISSUES AND TRENDS

Zinc extraction in Russia and globally2009-2013, thousand tonnes*

Zinc production in Russia2009-2013, thousand tonnes

Production in Russia, % change from the previous period

3.1 2.9 2.8 2.57 2.4

2010 2012 20132009 2011

348.1

11,200

12800

358.5

12,80013531

13,531 13450

322.8

13,450

In Russia Globally Russia’s share of global extraction volumes, %

* Source: USGS data

100.0

109.6102.8

97.6

86.4

2010 2012 20132009 2011

227 249 256 250 216

354.3

12,000

348.1

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2.2 1/3 OF ZINC METAL PRODUCED IN RUSSIA IS EXPORTED

Russian zinc export 2013, thousand tonnes, by key importing countries

Kazakhstan

South Korea

China

Turkey

BelarusNetherlands

Japan

29.71.3

16.2

7.03.0

16.712.79.5

Ore and concentrate Zinc and zinc products

GEOGRAPHY AND CORPORATE STRUCTURE

III


MAIN ZINC DEPOSITS IN RUSSIA

GEOGR APHY AND CORPOR ATE STRUCTURE

1-5 5-10 10-30

3.1

Reserves, mln. tonnes

Krasnoyarsk Krai

Sverdlovskaya Oblast

Chelyabinskaya Oblast

Orenburgskaya Oblast

Republic ofBashkortostan

Republic of Sakha (Yakutia)

Republic of Buryatia

Republic of TyvaAltai Krai

2

3

4

5

6

7

8

9

10

8

1

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3.2 RUSSIAN ZINC INDUSTRY: CORPORATE STRUCTURE

Kholodninskoye (Republic of Buryatia)

Ozernoye (Republic of Buryatia)

Korbalihinskoe (Altai Krai) Rubtsovskoe (Altai Krai)

Gorevskoe (Krasnoyarsk Krai)

Kyzyl-Tashtyg (Tyva Republic)

Sardana (Republic of Sakha (Yakutia))

Gaiskoe (Orenburgskaya Oblast)

Novo-Uchalinskoe (Republic of Bashkortostan) Uzelginskoe (Chelyabinskaya Oblast) Uchalinskoe (Republic of Bashkortostan)

Podolskoe (Republic of Bashkortostan) Yubileynoe (Republic of Bashkortostan)

Tarnierskoe (Sverdlovskaya Oblast)

InvestEvroKompani LLC

Techprominvest LLC

OJSC Sibir-Polimetali

Gorevsky GOK OJSC

Lusin LLC

Sibirskie Tsvetniye Metali LLC

OJSC Gaiskiy GOK

OJSC Uchalinskiy GOK

LLC Bashkirskaya Med’

LLC Svyatogor

1

2

3

4

5

6

7

8

9

10

Mines of the company











RUSSIAN ZINC INDUSTRY: LEADING COMPANIES


OJSC Gaiskiy GOK OJSC Svyatogor CJSC Shemur OJSC Sibir-Polimetalli OJSC Ural-Electromed’ OJSC Safianiovskaya med’ LLC Bashkirskaya med’ CJSC Urupskiy GOK CJSC Salairskiy Chemical Combinat CJSC Buribaevskiy GOK OJSC Sibaiskiy GOK TOO Nova Zinc (Kazakhstan)

TOO Nova Zinc (Kazakhstan) OJSC Aleksandrinskaya mining company OJSC Verkhne-Uralshaya ore company CLSC Maukskiy Mine

Elektrozinc Plant Chelyabinsk Zinc Plant

Chelyabinsk Zinc Plant

OJSC UMMC

CJSC Russkaya Mednaya Companiya

1

2

Mining companies

Mining companies

Metallurgicalprocessing enterprises

Metallurgicalprocessing enterprises

3.3

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OJSC GMK Dalpolimetall

LLC Yaroslavskaya GRK

OJSC Gorevskiy GOK

OJSC Ozyorniy GOK LLC Nazarovskoe OJSC Holodninskiy GOK

LLC Lunsin

OJSC Novo-Shirokinskiy mine

OJSC Novo-Shirokinskiy mine

LLC Sibirskie Tsvetnye Metally

OJSC Russkaya GRK

US Rusal

GK Mercuriy

LLC IFK Metropol

Zijin Mining LTD.

Highland Gold LTD.

Glencore International AG

LLC Summa Capital

3

4

5

6

7

8

9

10

Mining companies

Mining companies

Mining companies

Mining companies

Mining companies

Mining companies

Mining companies

Mining companies


Chelyabinsk Zinc Plant OJSC Electrozinc

* In 2013, the OJSC Electrozinc plant underwent renovation works.

CHELYABINSK ZINC PLANT IS A LEADING RUSSIAN PRODUCER OF ZINC


UMMC OJSC and Russian Copper Company are the key shareholders of Chelyabinsk Zinc Plant.

The company accounts for 60% of Russian zinc.

The high quality of produced zinc is confirmed by the LME registration of the CZP SHG (CHELYABINSK ZINC PLANT SPECIAL HIGH GRADE) brand, which guarantees 99.995% zinc purity.

OJSC Electrozinc is ranked second in zinc production in Russia (Vladikavkaz, Republic of North Ossetia–Alania, UMMC).

CHEL

YAB

INSK

ZIN

C P

LAN

T

2011

2012

2013

62.5

64.0

76.8

37.5

36.0

23.2*

3.4

Zinс production, by major producers, 2011-2013, market share, %

W W W.RDIF.RU 19

3.5 CHELYABINSK ZINC PLANT: KEY FINANCIAL INDICATORS

RevenueRub mln

EBITDA Rub mln

13,062

1,0771,6442,1942,8062,070

13,07712,77211,81010,167

2010 2012 20132009 2011

2010 2012 20132009 2011


CHELYABINSK ZINC PLANT: MARKET CAPITALIZATION


Chelyabinsk zinc plant capitalizationNov 2013- Nov 2014, %

Chelyabinsk zinc plant capitalizationUSD mln

Luxfer Holding Plc

Chelyabinsk zinc plant

Ningxia Orient

Guangdong Jingyi Metal Co Ltd

+16.2%

-16.6%

+33.1%

+76%

Source: Bloomberg, Reuters, Company data

186Nov. 13

216Nov. 14

+16.2%

200Mar. 14

216June 14

3.6

CHEL

YAB

INSK

ZIN

C P

LAN

T

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3.7 CHELYABINSK ZINC PLANT: PEER COMPARSION 2013, by Sales and Market capitalization

Rank Company Name Sales, USD mln

Market capitalization, USD mln

Location

104 Luxfer Holdings Plc 479.90 413.18 UnitedKingdom

105 Ningxia Orient Tantalum Industry Co., Ltd. 474.39 904.80 China

106 TCC Steel Corp. 474.37 50.99 Korea

107 Guangdong Jingyi Metal Co., Ltd. 433.84 356.74 China

108 Kamensk-Uralsky Metallurgical Plant OJSC 420.78 21.04 Russian Federation

109 Chelyabinsk Zinc Plant JSC 409.88 216 Russian Federation

110 Ningbo Boway Alloy Material Co., Ltd. 402.15 791.86 China

111 Loften Environmental Technology Co. Ltd. 397.71 660.97 China

112 Baoji Titanium Industry Co., Ltd. 391.77 1,291.73 China

113 Franco-Nevada Corp. 388.89 8,558.69 Canada


CHELYABINSK ZINC PLANT: KEY PERFORMANCE INDICATORS


3.8

2013

2013

2013

2013

2013

2012

2012

2012

2012

2012

2011

2011

2011

2011

2011

166.4

166.7

111.1

61.7

1.2

160.0

159.9

110.0

55.6

1.1

160.0

160.0

97.0

48.1

0.7

Production volumethousand tonnes

Sales volumethousand tonnes

Domestic marketthousand tonnes

Tollingthousand tonnes

Exportthousand tonnes

CHEL

YAB

INSK

ZIN

C P

LAN

T

W W W.RDIF.RU 23

NOTES


NOTES

W W W.RDIF.RU 25

NOTES


RDIF PRESENTS

PLATFORMINVEST IN RUSSIA

INVESTIN RUSSIA

W W W.RDIF.RU 27

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NON-FERROUS METALLURGY - Invest in Russia · 2014. 12. 18. · ZINC MINING IN RUSSIA IS CONTROLLED...

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Transcript of NON-FERROUS METALLURGY - Invest in Russia · 2014. 12. 18. · ZINC MINING IN RUSSIA IS CONTROLLED...