Group of Companies

SODIUM CYANIDE PROJECT AT THE FEZ “NIPT”ATYRAU, KAZAKHSTAN

October 2017

Group of Companies

Reconstruction of operating production facility

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KEY AREAS OF SERVICES PROVIDED BY ORGHNEFTEKHIM-HOLDING GROUP OF COMPANIES

Construction of new production facilities

ONH-Holding group of companies ensures the implementation of package of measures, namely analysis of the existing production facilities and

processing chains, development of design and estimate documentation, approval by the inspecting authorities, equipment supply, construction and installation works, commissioning with obtaining the specific result on the increase in the total profit of the refinery through the use of potential reserves of processing and production

chains.

ONH-Holding group of companies combines highest possible in the industry experience in the

implementation of domestic projects at all stages of the investment cycle, which allows implementation of

Project (number of Projects) based on the principle of necessity and sufficiency of equipment with maximum

use of domestic equipment.This approach makes it possible, when using standard

process, design and managerial decisions job-proved in recent 15 years, to achieve a minimum cost of the

Project within the implementation period, significantly shorter relative to international practice.

Group of Companies

Development

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ORGHNEFTEKHIM-HOLDING GROUP OF COMPANIES – RUSSIAN ЕРС CONTRACTOR

INKO-TEKConsulting, engineering, R&D, process technology licensing,

commissioning

OrgneftekhimproektDesign institute

NAFTAINZHINIRINGDesign institute

TechnologiyaDesign institute

InsightAPCS and design institute

Kama-AvtomatikaAPCS

Orgneftekhim-EngineeringR&D, process technology

licensing

Innovative Coatings (INPO)

Special protective coatings

Stroy-InvestConstruction and installation

works

КАМАConstruction and installation

works

Extended EPC-structure, reinforced by interaction with the national licensees, and science on the one hand, and service companies on the other.

ONH-SynthesGasProektDesign institute

(synthesis gas, fertilizers)

KMS-TRANSSTROYLogistics services

1000+ People, incl. 500+ Design Engineers, 300+ ConstructorsCan easily be increased several times due to strong management and engineering core

APCS Block

Capital construction

Block

Hydroconversion is a national project

EPC

Project development

and investments justification

Construction organization and control

Technical assistance,

optimization, commissioning

Design Organizations

Block

Exclusive right for alkylation of benzene with ethylene over zeolite catalyst

Alternative method of

isopropylbenzene

production

Group of Companies

LOCATION OF ORGHNEFTEKHIM-HOLDING GROUP OF COMPANIES DIVISIONS

PodolskOOO INPO Chernogolovka:

OOO ONH-Engineering

Nizhny Novgorod:OOO EA InsightOOO Tekhnologiya

Kazan:OOO ONH-HoldingOOO ONH-SGP

Nizhnekamsk:OOO ONH-HoldingOOO INKO-TEKOOO KAMAOOO Kama-Avtomatika

JSC TANECOconstruction site

Sterlitamak:OOO Orgneftekhimproekt

Rostov-on-Don:OOO Tekhnologiya

Krasnodarskiy krai:Afipsky Refineryconstruction site

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Moscow:OOO ONH-HoldingOOO INKO-TEKOOO KMS-TRANSSTROYOOO NAFTAINZHINIRING

Dzierżyńsk:ООО Tekhnologiya

Volgograd:OOO Stroy-Invest

Group of Companies

TURNKEY PROJECT

Project feasibility study and organization of financing

Basic Engineering,

basis of design

Detailed Engineering

Organization of equipment procurement

Construction works organization and progress

monitoring

Management system organization

Personnel selection and training

Commissioningworks

Technical and economic

optimization

• ООО ONH-Holding• OOO INKO-TEK• ООО Orgneftekhim-Engineering

• ООО ONH-Holding• OOO INKO-TEK• OOO Orgneftekhimproekt• OOO Tekhnologiya• OOO Orgneftekhim-Engineering • OOO Innovative Coatings

• ООО ONH-Holding• OOO Orgneftekhimproekt• OOO Tekhnologiya• OOO INKO-TEK• OOO EA Insight• OOO NAFTAINZHINIRING

• ООО ONH-Holding• OOO INKO-TEK• OOO KMS-TRANSSTROY

• ООО ONH-Holding • OOO Stroy-Invest• OOO INKO-TEK• OOO EA Insight• OOO Kama

• OOO INPOOrganization management systems • OOO ONH-Holding• OOO INKO-TEKAPCS, DCS & ESD• OOO Kama-Avtomatika• OOO EA Insight

• OOO INKO-TEK• OOO EA Insight

• OOO INKO-TEK • OOO Kama-Avtomatika• OOO EA Insight

• OOO ONH-Holding • OOO INKO-TEK

1 2 3

4 5 6

7 98

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Group of Companies

REFERENCE LIST - ONH-HOLDING GROUP OF COMPANIES 2014 – 2017

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▪ EPC-contract with PJSC TATNEFT n.a. V.D.Shashin for turn-key constructionof Hydroconversion Unit together with Off-Site facilities, as well asCDU/VDU-6 at Refinery and Petrochemical Plants Complex in Nizhnekamskis in progress.

1 EPC-contracts performance

1Project selection and

organization of financing

▪ ООО Afipskiy Refinery▪ OAO Nizhnekamsk Refinery▪ OOO Tomskneftepererabotka▪ TAIF-NK PSC▪ OJSC TANECO▪ ОАО Gazprom neftekhim Salavat▪ ОАО Nizhnekamskneftekhim▪ ООО Freudenberg Politex▪ ОАО Gazprom – MNPZ (Moscow Refinery)▪ ОАО Orgkhim▪ ОАО Slavneft-YANOS (Yaroslavl Refinery)▪ OOO NZMP (Novokuibyshevsk Lubes & Additives Plant)▪ OOO Lukoil-Nizhegorodnefteorgsintez▪ OAO Saratov Refinery▪ OAO Metafraks (Metanol Plant)▪ OAO Sayanskkhimplast▪ OOO Orenburggasprom and etc.

1Basic

Engineering

DetailedEngineering

1

1

Technical and economic optimization

Delivery of equipment

Construction management and control

Management system organization

Commissioning works

Group of Companies

SODIUM CYANIDE PROJECT DESCRIPTION IN ATYRAY REGION FEZ “NIPT”, KAZAKHSTAN

•

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Capacity of 25 000 tpy at the plant designed by our partners with patented method for

direct production. The product will be 99 % NaCN briquettes.

Project Budget $ 75 million

Implementation Period 18 months

Product Price (min) $ 1700 /ton

Turnover $ 42,5 million

Profit $ 27,5 million

Ammonia $ 417 /ton

Natural Gas $ 60 /1000 m3

Sodium Hydroxide $ 200 /ton

Interest Rate 6%

1Key Figures

1Raw Material

prices

• Reduced manpower

• Reduced electric consumption

• Reduced emissions of NH3, HCN, NO, CO, CO2

• Green technology (flare gas and organic waste may be used as feed streams)

1Other advantages

• Higher yield and conversion

• Lower catalyst costs

• Longer campaign length

• Reduced maintenance

1. Smaller equipment and lower investment cost for a given capacity.

2. Lower operational costs per ton produced due to:

Group of Companies

BriguetteReactor Boiler Absorber Cooling Drying Filter

Ammonia

MethaneMixer

Air

Sodium Hydroxide

Current Technology

Solution 30% Slurry 70%

Briquette

Product

Mixer

Briguette

Reactor BoilerAmmonia Absorber

HCN

Absorber

HCN

DistillerMixer

Ammonia

Methane

Air

Sulphuric Acid

Dilute Phosphoric

AcidWaste Water

Briquette

Product

Ammonium Sulphate

HCN

Product

Sodium Hydroxide

Phosphoric Acid

Energy

Filter Drying Cooling

Water

SIMPLIFIED FLOW SHEET FOR THE PRODUCTION OF NACN

Direct Process

Comparison between direct production and current technology

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Group of Companies

Project managementPreparation of projectexecution procedures

Establishment of QA/QC plan and safety manual/

plan for project execution

Project control (planning, scheduling and control, budget preparation, cost

control, reporting, technical bulletins

preparation and update)

Tender documentspreparation for EPC

contracts, TPI contracts, design review and

construction supervisioncontracts, and contracts for

materials purchasing

Bids evaluation

Contracts administration

Fulfillment, verification ofcontractors QA/QC

systems and health, safetyand environmentalprotection systems

Site representation andconstruction management

Contracts documentsmanagement

Project management teamadministration and IT system coordination

PROVIDED SERVICES FOR THE PROJECT ON TURNKEY BASIS

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Group of Companies

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The production of HCN in the world today is around 2.000.000 MT per year (if it was

produced as NaCN it would be 3.700.000 MT).

The NaCN production is only around 20 % compared to the HCN production

(800.000 MT as NaCN per year).

Most of this NaCN is used for the heap leachingof gold and silver (around 80%).

There is a change in the world regarding the use of HCN and NaCN. NaCN is taking over more and more of the market that previously

belonged to HCN. The reasons for this change are several and the most important::

1. NaCN is less toxic (no vapor phase)

2. Easier transport of NaCN because it may be transported as dry matter (not possible for HCN which is an acid and not a salt)

3. Same or lower price per unit of CN

In Europe however there is a change in the patterns of the use of NaCN.

Only 13% is used for heap leaching of gold and silver.

The rest is used for the production of Chelates(36 %), Dyes and Pigments (17 %),

Pharmaceuticals and Chemical Intermediates (12 %), Agrochemicals (11 %), Electroplating

(7 %) and Methionine (4 %).

THE USE OF HCN and NaCN IN THE WORLD

Group of Companies

• Access railway (15.6 km.)• Zavodskaya Railway Station• Access road (5.3 km.)• Power transmission line (110 kV overhead line)• Flyover (bridge over railways)

EXISTING INFRASTRUCTURE

Flyover Substation 110 KV Railway station Zavodskaya

1st stage (2017-2019)• Fire station;• Customs control checkpoint - 1 pc .;• Security checkpoint- 2 pcs.• Boiler house;• Engineering networks;• Evaporator-pond- - 2 cells;• Truck weighing machine;• X-ray facilities;• Road to the evaporator pond.

2nd stage (2019-2022)• Residential building;• Customs control checkpoint - 2 pcs .;• Gas station for 3 columns;• Solid waste landfill;• Washhouse(laundry);• Repair shop;• Warehouse with storage area;• Engineering networks;• Tengiz site facilities.

GENERAL SEZ INFRASTRUCTURE

PRODUCTION INFRASTRUCTURE

Water treatment plant 2017-2021

Technical gases plant2018-2020.

The gas-turbine power plant (2014-2018)

• The gas-turbine power plant (310 MW)• Technical gases plant • Water treatment plant

ПреференцийCORPORATE

INCOME TAX, VATLAND TAX

PROPERTY TAX CUSTOMS DUTIES

(when you import 0%,

when exporting finished products

There is a process of identification and

VAT is payable -12%)

✓EU and CIS markets easy approachability

✓ simplified foreign work force hiring procedure

✓one stop shop

✓Tengiz and Kashagan oil fields closeness

ADVANTAGES

WHY FREE ECONOMIC ZONE «NATIONAL INDUSTRIAL PERTROCHEMICAL TECHNOPARK»

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Group of Companies

Moscow Main Office

Fl. 8, bl.A, BC Magistral Plaza,

1-st Magistralny tupik 5a, MoscowTel: +7(499) 372-52-30

Postal address: BC Magistral Plaza, block A, Magistralny 1-st tupik 5a, 123290, Moscow

e-mail: duisinaliyev_na@onh-holding.ru

e-mail: info@onh-holding.ru

Website: www.onh-holding.ru

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