FLUORO-CHEMICALS: LOCAL FRUITS OF AN ADVANCED NUCLEAR PROGRAM DR PETRO TERBLANCHE MANAGING DIRECTOR: PELCHEM SOC LTD FLUORINE IS OUR BUSINESS!! Nuclear capability harnessed FluorochemIcal excellence 2 Value Chain: F > NFC Downstream products Fuel elements Fluorochemicals Enrichment X2.5 Fluorine Conversion (UF6) X10 HF Conversion (UF4) X8 Fluorspar ore FluorochemIcal excellence Uranium ore 3 Beyond nuclear FluorochemIcal excellence Pelchem SOC Ltd • Subsidiary of the South African Nuclear Energy Corporation (Necsa) created to apply the nuclear knowledge base to diverse sectors through process and market innovation • Registered as a state owned company (SOC), governed by independent Board of Directors • Proud record of more than 27 years experience in locally produced fluorspar beneficiation • Plays a leading role in the SA Fluorochemical Expansion Initiative (FEI) • Ability and knowledge base to diversify, expand and develop Fluorine products across multiple market sectors FluorochemIcal excellence Growing presence in Africa! Pelchem F-hub at Pelindaba FluorochemIcal excellence Pelchem: We’re in your world: 25 products delivered to 27 Countries on 6 Continents Pelchem America: - Canada - USA - Brazil - Argentina Africa: - Namibia - Botswana - Saudi Arabia - Dubai Asia: - China - Taiwan - Singapore - Japan - Korea Europe: - France - England - Germany - Romania - Ireland - Switzerland FluorochemIcal excellence Global sectors serviced Semiconductor/ electronics Agrochemical Fluoropolymers Construction Mining Automotive Photovoltaics Petrochemical Medical & Pharmaceuticals Packaging FluorochemIcal excellence Steel manufacturing MEMS Diagnostics Pelchem: We’reWe’re in yourinworld Pelchem: Africa Pelchem Foreign Market America: Americas: - Canada Canada - USA USA - Brazil Brazil - Argentina Africa: - Namibia Namibia - Botswana Botswana - Saudi Arabia -Middle DubaiEast: - Saudi Arabia - India Asia: --Turkey China - Taiwan -Asia: Singapore - China Japan - Taiwan Korea - Singapore -Europe: Japan - Korea France - England -Europe: Germany - France Romania - England Ireland - Germany Switzerland - Romania - Ireland - Switzerland -Austria Qualcomm u o r o cc hh e m I c aa ll e x cc ee l ll ee nn cc ee Flu CONFIDENTIAL May 2013 9 Nov-2011 Pelchem Business Environment FluorochemIcal excellence F- Value Chain: Building Blocks for a SA fluorochemical hub XeF2 NF3 C7F16 APIs F2 on line, Compressed F2 in cylinders, F2/N2 mixtures Fluorine >R100/kg Hydrogen Fluoride ~R20/kg Fluorspar SA mineral <R2/kg AHF, HF acid grades FluorochemIcal excellence * XeF2 sells for R40,000/kg Small volume, high value specialty fluorochemical Local and export Industrial/ Consumer goods >R250/kg) Large volume HF consuming commodity products (R25-R200/kg) Fluorocarbon refrigerants range from R25/kg for R-22 to R50/kg for R-134a. Fluoropolymers range from R50/kg for PTFE to >R150/kg for higher value products e.g. PFA. Fluorochemical hub model Perfluoroheptane (C7F16) Global scale refrigerants/polymers Xenon difluoride (XeF2) Nitrogen trifluoride (NF3) Local fluorspar 120,000 tons HF 60 000tpa Fluorine Fluoromonomers Fluorine mixtures Perfluoroalkanes AHF &HF aqueous solutions Specialty metal fluorides F-salts NaF.HF , Na2SiF6 K2SiF6, HBF4 K2TiF6, ... FluorochemIcal excellence MoF6, IrF6 ... Surface fluorination Mandate: Preservation of fluorine commercial technology and skills for SA’s Nuclear Fuel Program SA Fluorochemicals Incorporated? FluorochemIcal excellence Products, pipelines, partners, Ketlaphela and FEI Rajen Naidoo Pelchem: Executive Director: New Business Development and Government Liaison and Interim MD: Ketlaphela Pty Ltd FluorochemIcal excellence