August 2018

Project name: «Renewal of potassium bifluoride production»

Project operator: AECC, JSC

Project manager: Oleg Vladislavovich Osipenko, tel. +7 (395) 559-96-02

Project administration: Yuri Aleksandrovich Dyakovich, tel. +7 (395) 559-96-04

Company Profile

Year established 1957

Main businesses

Uranium hexafluoride enrichment services Production of fluorine-based products

Nuclear products Uranium hexafluoride, an intermediate product for commercial nuclear fuel fabrication

Fluorine products

Potassium bifluoride Anhydrous hydrogen fluoride (HF) Triflic acid Triflic anhydride

Annual revenues in 2016

5.3 billion rubles (86.9 mil. USD)

Personnel Approx. 1000 people

Location Angarsk, Irkutsjk Region, Russia

150 km from Lake Baikal

2

AECC, JSC is a State Corporation “Rosatom” company which is a part of the

uranium conversion and enrichment complex of Fuel Company “TVEL”

Nuclear Fuel

Cycle

Uranium

conversion

Uranium

mining

Uranium

concentrates

processing

Uranium enrichment

Fuel fabrication

Power generation

3

Development strategy

Development of the 2nd business kernel: - Exponential growth of company’s revenues by the year 2030

Reduction of product costs and processes completion time

Larger share on international markets

New products for domestic and foreign markets

Strategic goals of Rosatom Corporation

Strategic goals of TVEL

5 to 7 Years – Production capacity growth, expanding product

portfolio.

1 to 3 Years – Development of technologies and start-up of non-

nuclear products

15 to 20 Years – Establishment of a global competitive non-nuclear

company

Strategic goals of AECC

4

1957 Commissioning of Phase I of the gaseous diffusion uranium enrichment plant of Angarsk Electrolysis Chemical

Complex.

1963 Commissioning of all industrial facilities of AECC: uranium conversion plant, enrichment plant and all supporting

infrastructure.

1974 Full renovation of uranium conversion plant completed. New process equipment developed and commissioned.

1995 Gaseous diffusion uranium enrichment technology fully replaced with gas centrifuge technology. Switching to new

technology resulted in substantial increase in throughput while drastically reducing the environmental footprint

1996 Operation of Triflics Plant commences to produce Trifluoromethanesulfonic acid and Trifluoromethanesulfonic

anhydride.

1997 Commercial production of R-14 refrigerant commences.

2007

Potassium bifluoride (PBF) plant operation resumed. 2018

AECC and other conversion and enrichment plants of Russia become affiliates of Fuel Company “TVEL”. 2010

International Uranium Enrichment Center is established at the AECC site under the aegis of International Atomic

Energy Agency (IAEA)

2014 Uranium conversion plant shut down.

2016 Triflics plant operation resumed.

History

2018

5

Prospective businesses based on the Chemical Plant

infrastructure

Triflics production

Renewal of trifluoromethanesulfonic acid and anhydride, production of triflic derivatives

Elegas (sulfur hexafluoride) production

Renewal of elemental fluorine production and start-up of SF6 production.

Artificial quartz crystals production

Artificially grown high-purity quartz crystals production (250 MT/a) – a joint venture with Germany-based

company.

Anhydrous hydrogen fluoride production

Renewal of anhydrous HF production.

Lithium hydroxide production

Lithium hydroxide monohydrate production using electrochemical conversion of lithium salts.

Potassium bifluoride production

Renewal of potassium bifluoride production.

6

Project location

Angarsk, Russia

Potassium bifluoride (PBF) plant is located in “Electrolyte Recovery Building (ERB)” which is a part of

Uranium Conversion Plant infrastructure. ERB is equipped with all equipment and engineering networks

including industrial sewage and air ducts to the central gas cleaning station required for plant operation.

ERB is not included in Nuclear Facility and does not require decommissioning as part of Uranium

Conversion Plant shut-down.

PBF plant

AECC production site

Product and technology of the Project (1/2)

Product: potassium bifluoride (KF×HF) complying with GOST 10067-80 (PBF).

7

KОН

Н2О

Dissolution of КОН in

water

KОН water

solution

KF neutral

solution

Concentration (evaporation ) of КF neutral

solution (t=105-120 C°)

Concentrated KF neutral

solution

HF

Saturation of КF neutral

solution with hydrogen

fluoride

KF×HF

solution

Crystallization of

KF×HF (t=25 C°)

Solution with

KF×HF crystals

Filtration and obtaining KF×HF wet

crystals and acidic mother liquor

KF×HF wet

crystals

Neutralization of mother liquor with

КОН water solution

Acidic mother

liquor

Drying of

KF×HF wet

crystals

KF×HF

Product and technology of the Project (2/2)

8

Production of PBF at AECC

Capacity – up to 120 tpa

Experience – more than 30 years

Plant renovation completed in 2010 – the most up-to-date plant in Russia

Product: potassium bifluoride (KF×HF) complying with GOST 10067-80 (PBF).

Description

Standard

Grade «Ч» Grade «Ч.Д.А.»

Mass fraction of potassium bifluoride (KF × HF), % 98-102 99-101

Mass fraction of chlorides (Cl), %, max. 0,01 0,005

Mass fraction of sulfates (SO4), %, max. 0,02 0,01

Mass fraction of iron (Fe), %, max. 0,004 0,001

Mass fraction of silicon (Si), %, max. 0,02 0,01

Mass fraction of lead, copper and manganese (Pb+Cu+Mn), %, max. 0,001 0,001

Project implementation structure

9

AECC, JSC

• Investment project implementation

• Production of PBF

TVEL, JSC

Supply of КОН

Sales

Project coordination

Russian market

World market

Supply of HF

Sales Raw materials

suppliers

Equipment suppliers

Supply of steam

generator and lab

equipment

Target market overview

10

Production of

elemental fluorine

Etching agent in the

production of aircraft

engines

Glass etching for

“frost” effect

Flux component

1

2

3

4

Elemental fluorine (F2) is only commercially produced using

electrolytic method. It is the most cost-efficient method employing

HF decomposition using KF*2HF as electrolyte.

Etching – cleaning metal and alloy surface from oxides, rust, grease

and other contaminants.

An important use in aerospace industry is the removal of ceramic

rods from turbine blades in melted potassium bifluoride2).

Treatment of glass with fluorine-containing compounds results in

formation of insoluble chemical films creating “frost” effect which can

vary depending on exposure duration and agent concentration.

Flux in steel making is a group of inorganic substances added to the

ore to facilitate separation of metal from gangue and decreases

melting temperature. In welding, flux is a special material that has

protective and cleaning properties. In soldering, flux is a material that

removes oxide from the surface of soldered parts and decreases

surface tension.

Organizational structure of the project

11

Management (direct decision-makers)

Team

A. Dudin

General Director

AECC JSC

▪ Project Sponsor

A. Kamashev

Director

Department of TVEL JSC

▪ Project Curator

O. Osipenko

Leading specialist

Special Design and Technology

Section

AECC, JSC

▪ Project Manager

A. Masovetz

Investment planning

specialist

AECC JSC

▪ Investment analysis

A. Trubin

Chief Specialist

TVEL JSC

▪ Project Coordinator

N. Shishkina (Ms.)

Leading economist in

finance planning

AECC JSC

▪ Financial analysis

E. Akkuzin

Foreman

Chemical Plant Facility

AECC JSC

▪ Expert

Yu. Dyakovich

Head of Marketing Group

Special Design and technology

Section

AECC JSC

▪ Project Administrator

Building 100, Block 2, South Estate, Angarsk, Irkutsk Region 665804 Russia

Telephone: +7 (335) 554-44-34 (Russian), Telephone: +7 (335) 559-97-20 (English)

Fax: +7 (335) 554-00-00, e-mail: aecc@rosatom.ru, triflic@aecc.ru

«Angarsk Electrolysis Chemical Complex», JSC