Brief presentation of Minerali Industriali Piazza Martiri della Libertà 4 - 28100 Novara - ITALY Tel. +39.0321.377600 - Fax +39.0321.391874 - e-mail: info@min-ind.it Web site: www.mineraliindustriali.it - youtube.com/mineraliindustriali MI TODAY MINERALI INDUSTRIALI (MI) is an Italian independent mid-size company founded about 40 years ago, managed by the two owner families and 6 top managers. It has been listed in the Italian Stock Exchange (standard 1 segment, named Gruppo Minerali Maffei) till March 2012 and then has been delisted through a voluntary OPA (public purchase offer). MI operates in the sector of extraction, treatment and trade of raw materials for glassworks and ceramic such as silica and feldspathic sands, feldspars, kaolin and clays for the Italian market. In August 2013 has merged the company MINERAL RESOURCES (MR), dedicated to the recovery of secondary raw materials, the managing of foreign mining activities, the design and construction of mining facilities for third parties. The direct staff of MI up to 31st December 2013 was around 550 units (about half of them in Italy), plus some hundreds of subcontractors operative in non strategic operations. pag. 2 DEVELOPMENT STRATEGY The development has been realized both through the acquisition of already existing companies and through new projects, JV or outsourcing agreements. AQUISITIONS GREEN FIELD PROJECTS JOINT VENTURES Examples: Examples: 1994: Fondat 1995: Italmineraria 2007: Maffei Examples: 1994: Ecomin 1995: Sarda Silicati 2004: GMB (Brazil) 2006: MIT (Tunisia) 2008: CS (Czech Republic) 2008: EIIM (Egypt) 2010: LQS (UK) 2011: SM (Egypt) OUTSOURCING AGREEMENTS Examples: 2001: MIB (Bulgaria) 2005: MS (Mexico) 2009: MRG (Guatemala) 2011: COMIND (Colombia) pag. 3 COMPANY STRUCTURE Minerali Industriali (MI) Company Structure MINERALI INDUSTRIALI Operative Sites Maffei Sarda Silicati Sasil Czech Silicates Lochaline Quartz Sand Minerali Industriali Bulgaria Egyptian International Industrial Minerals Minerali Industriali Tunisia Suez Minerals Colombia Minerales Industriales Gruppo Minerali do Brasil Mineral Resources de Guatemala Mexican Silicates Bernate (MI) Buddusò (OT) Brusnengo Krasno Lochaline Sevlievo, 2001 Cairo (HQ) Ouesslatia (plant) Cairo (HQ) Sibatè Itupeva Guatemala City Tlaxcala Sinai Sousse (Port) Suez Boca (NO) Florinas (SS) Kaspichan, 2003 Cacciano (BI) Orani (NU) Ramovo, 2007 Campiglia (LI) Ottana (NU) Zacatlan Gallese (VT) Lozzolo (VC) since since since since since since since since since since since since S. Severa (Rome) 1990 1970 2008 2012 2001 2008 2002 2011 2013 2002 2009 2005 Sanfront (CN) Sondalo (TN) Verbania (VB) Participation in Sea Gull (Oristano) and TCO (Livorno) Participation in Ecominerali Mexicana rev.October 2014 since 1975 Raw materials for tiles, glass, sanitary ware and other industrial applications, ITALY Raw materials for ceramic and glass from Sardinia, ITALY Recovery of glass scraps and others industrial wastes, ITALY Feldspar for glass and ceramic, CZECH REPUBLIC Silica sand for glass, UNITED KINGDOM Feldspar for sanitary ware, BULGARIA Silica sand for glass, EGYPT Silica sand for glass, TUNISIA Raw materials for ceramic and glass, EGYPT Silica sand for glass and ceramic, COLOMBIA Feldspar for glass and ceramic, BRAZIL Feldspar for glass and ceramic, GUATEMALA Feldspar for glass and ceramic, MEXICO pag. 4 MARKETS The main Group destination markets (according to the turnover) are: 37% GLASS both float (for cars and building industry), and flint (for containers, house ware, pharmaceutics and perfume industry); 31% TILES gres porcellanato and single firing; 26% SANITARY WARE, frits and enamels; 6% Others (paints, abrasives, etc). Sales by value sanitaryware 26% others 6% tiles 31% glass 37% pag. 5 MAIN CUSTOMERS Our companies have established business relationship of mid-long period with international main customers and supply products according to the specific needs of the customer. We are proud to say that some of our main customers choose to enter with minority shares in our controlled operative companies (for example Pilkington in Tunisia and Scotland) or they gave us their mines and plants to be managed. pag. 6 MI – PRODUCTION PLANTS Minerali Industriali’s presence counts: 14 production units in Italy, 4 in Europe, 4 in North Africa and 5 in South America; the main activities are certified ISO 9001:2008, while the operating unit of Maffei Sarda Silicati of Orani/Ottana has obtained the excellence certification (quality, environment, safety). Where we are in Italy For the sites of: Cacciano (BI), Campiglia (LI), Lozzolo (VC), Novara (NO), Sassuolo (MO), Verbania (VB) and Sasil Brusnengo (BI). ISO14001 e OHSAS 18001 limited to the sites of: Orani (NU) and Ottana (NU). pag. 7 MI – PRODUCTION PLANTS pag. 8 MINES AND PRODUCTION PLANTS (1 of 2) pag. 9 MINES AND PRODUCTION PLANTS (2 of 2) pag. 10 ENVIRONMENT • REDUCTION OF CO2 EMISSIONS GLASS NORTH ITALY For about 54.000 ton/year as consequence of the lower energy request for the fusion of the recovered glass rather than of raw materials same as the emissions of 33.000 cars for 1 year at 15.000 km/year • REDUCTION OF THE UTILIZATION OF RAW MATERIALS CITY COLLECTION Replaced by recovered glass and so LOWER MINING EXPLOITATION same as 10.000 sm of mine area 1.000.000 ton covered by about 1.000 long-trunked tree LIFE+ project ENVIRONMENT N° 332/06 MAIN RECUPERATORS METAL 2,5 % 25.000 ton GLASS 75 % 750.000 ton Thanks to the integral recovery of the thermal and electric energy done by the turbine of COGENERATION same as the yearly electric consumption of 10.000 houses PRODUCTION PLASTIC 2,5 % 25.000 ton • IMPROVEMENT OF THE ENERGETIC EFFICIENCY SCRAPS 20 % 200.000 ton PRODUCTION PLANT SASIL WET TREATMENT DRY TREATMENT 160.000 ton/year GLASSWORK 400 million of bottles produced 25.000 ton/year CERAMIC PLASTIC TREATMENT PLASTIC PYROLYSIS obtaining 1 million m2 tiles produced 10.000 ton/year GAS and OIL TURBINE OF COGENERATION BRICKWORKS 1.000 houses of 100 m2 build pag. 11 ENVIRONMENTAL RECOVERIES: METHODOLOGY The Group is traditionally keen on the safeguard and valorization of the areas object of exploitation. This pushed the company to constantly invest in environmental recovery projects of its mines and quarries (for more info www.leminierechevivono.it). The interventions of environmental recovery are punctually planned according to: • morphological characteristics of the mining areas to be recovered; • the inclination of the site based on the edaphic characteristics found (climatic conditions, earth, vegetation and fauna); • the future possibility of exploitation of the recovered areas from the community. pag. 12 ENVIRONMENTAL RECOVERIES: PURPOSES The interventions of environmental recovery, studied ad hoc for each single site, have per objective, for example, the: • touristic valorization; • creation of pleasant areas to give to the local people through local organization as “Pro Loco”; • improvement of the pedology characteristics of the fields interested in the recovery with consequent increase of the agricultural production; • setting in safety/recovery to green/natural valorization of degraded areas exploited by previous mining activities before the acquisition of the site by the Group; • creation of habitat suitable for the reproduction of the local fauna and birdlife. All the interventions of environmental recovery are joined by the contextuality of the recovery with the activity of mining exploitation in order to limit the impact on the environment. pag. 13 RESEARCH AND DEVELOPMENT The R&D team has the following tasks: a) geological and mining research research;; b) study and valorisation of new deposits; c) study and realization of new mining plants, traditional or with innovative cycles; d) study and realization of new machines (e.g. a dryer with low consumes levels and a high pressure roller mill); e) carry out laboratory and semi semi--industrial tests with the purpose to improve the ceramic and glass mix, by introducing the new products mentioned above. The R&D activity done by MI is for internal use, sometimes acts as third parties and often in collaboration with Universities and researches centre of other companies. pag. 14 NEW PROJECTS Here are our plans for the future: • realization in other parts of the world of projects based on the model done in Tunisia, that is proposing a minority share to important customers, with long-term supply contracts; • developing of the selling activity of mining plants and equipments; • development of the managing activity of the mines and plants as third parties; • valorization of the quartz of Sondalo, best working Italian mine and, maybe, European of pure quartz, for high end uses as, for example, the solar panels; • evaluation of possible acquisitions and partnership in Italy and abroad. pag. 15