High purity quartz supply & demand Murray Lines, Sydney ,Australia

Quartz & Silica Production 2018

• Quartz ~ 3,951,000 tonnes

• Quartzite ~ 1,018,000 tonnes

• Total quartz ~ 5 million tonnes

• Silica sand ~ 90 million tonnes

1. Quartz melting temperature is around 1,600° C.

2. Quartzite has melting temperature of 1,800° C.

3. Both are acceptable for refractory .

Main Sources of High Purity Quartz

Sibelco/Unimin & Quartz Corp USA

Quartz Corp Norway

Rajasthan India

Yilgarn & new entrants Australia

Northern Silica Canada

Lianyangang China

Kyshtym Russia

Chukotka Russia

Brazil

Some Current Quartz Producers

Quartz – Suppliers of HP Quartz

Quartz Corp

China Producers

Russian producers

Others

Unimin / Sibelco

80% from two leaders

Global & ASIA Quartz –Global Summary Volume & Value

Asia Pacific share US$ Mn 408 500 712 (Tons) 51,900 62,900 86,400

GLOBAL

Quartz Processing – the key to value

Classification of Quartz

Asia Pacific H. P. Quartz Market trends in Volume & Value

Country /Volume kt 2018(a) 2019(f) 2020(f) 2021(f)

China 22 23 24.6 26.2

Japan 15 16.3 17.4 18.5

South Korea 7.2 7.6 8 8.5

Taiwan 4.3 4.9 5.1 5.5

Aust & NZ 2 2.2 2.2 2.4

Rest of Asia 1.4 1.6 1.7 1.8

Kilo-tonnes 51.9 55.6 59 62.9

Total Value $US 408.5 436.2 466.4 500.1 Source: Electronics industry

Asia Pacific Quartz Trends • Asia Pacific, led by China, dominates the global market in terms of

consumption.

• India is expected to be an emerging market for high purity quartz

• Asia Pacific is estimated to account for ~ 53% of the global high purity quartz consumption & expand about 6.4% in terms of volume over the forecast period

• China & Japan accounted for ~ 70% of the high purity quartz consumption in the region, owing to the huge semiconductor sector manufacturing facilities & solar PV.

• 75% of the global high intensity lighting tubing production facilities are located in China especially around Lianyungang (Pacific Quartz Corp etc)

• Government initiatives in China & India towards promoting semiconductor industries in the region are expected to drive high demand in the region.

• The Chinese government is planning to spend US$ 350 billion on clean energy up to 2025 which will drive the demand for HPQ in the near future.

Indian Quartz Specifications from Ashapura Group These grades are mainly used in glass, ceramic (white-wares), foundry, oil well drilling,

semiconductor, ferro-silicon, metal, electrode etc

Phase Diagram showing variety of Quartz Genesis

Quartz - Characteristics

• Useful qualities of quartz: 1 - High degree of hardness 2 - Low rate of expansion 3 - Resistance to high temperatures 4 - High resistance to abrasion 5 - High degree of chemical purity 6 - An excellent electrical insulator 7 - Resistance to thermal shocks 8 - Resistance to radiation 9 - A large transmission of the light spectrum.

High Purity Quartz markets by type, application & region

India Some Observations • Some major modern sand mining in Rajasthan &

Gujarat states

• Modern equipment used more than previously

• Large resources available

• Logistics is often the key – proximity to wharf & rail etc

White-firing kaolin is often a by-product

High purity quartz – a growth sector • High purity quartz is an important raw

material in the silicon industry sector. The SiO2 content is between 99.9 - 99.99% & Fe2O3 content < 0.001%.

• It is widely used in quartz glass, lighting, semiconductor, electronics, fibre optics & other industries.

• This industry is affected by the economy & government policies.

• With the global economic recovery, more and more people pay attention to rising environment standards, especially in underdevelopment regions that have a large population & fast economic growth, the need will increase.

High Purity Quartz supply chain - simplified

Examples of Quartz Buyers – Price guide /tonne depends on purity %Fe2O3

Simplified grades of High purity Quartz • Low Grade HPQ (SiO2 minimum 99.9%)

• Medium Grade HPQ (SiO2 minimum 99.99%)

• High Grade HPQ (SiO2 minimum 99.997%)

Key end uses: Microelectronics Solar Energetics Lighting Equipment Optics Other

Some industrial leaders in this field Unimin/Sibelco Quartz Corp Mineracao Santa Rosa(MSR) Kyshtym Mining Jiangsu Pacific Quartz Donghai Colourful Mineral Products Xinyi Mingwang Quartz Sand Donghai Shihu Quartz

• Microelectronics engineering deals with the design and microfabrication of very small electronic circuit components for use in an integrated circuit or sometimes for use on their own as a general electronic component.

• The most common microelectronic components are semiconductor transistors, although all main electronic components (resistors, capacitors, inductors) can be created at a microscopic level.

• Nanoelectronics is the further scaling of devices down to nanometer levels(already below 100µ since 2002)

• Microelectronic components are created by chemically fabricating wafers of semiconductors such as silicon (at higher frequencies, compound semiconductors like gallium arsenide & indium phosphide) to obtain the desired transport of electronic charge and control of current.

Quartz Lighting • IOTA® quartz is used for the production of

all types of quartz lighting, including automotive xenon, halogen, HID, & UHP lamps.

• Manufacturers of quality quartz tubing prefer IOTA quartz for its high chemical purity & superior fusion properties to maximize production yields.

• Lamps fabricated with IOTA quartz have high temperature stability, resistance to devitrification & excellent optical clarity.

• Sibelco produces a full range of IOTA® quartz products for each lamp application, for example, IOTA 6, with its low alkali content, is used for the most demanding high-end UHP lamps.

o Since High intensity discharge HID lights do not have a filament in them that could burn out like halogen lights

o HID light bulbs can last 2,000-3,000 hours vs 450-1000 hours for halogen light bulbs

o The light emitted by the bulb will shift slightly from a yellowish colour to a more crisp blue colour.

Spruce Pine Quartz deposit

Spruce Pine Quartz Corp mining technique

Zeta 3 Zeta 4 Zeta 5

Al 100/120 30/40 18/25

Fe 20/50 5/20 0.5/07

Cr <1 <1 <0.5

Ni <1 <1 <0.5

Co <1 <1 <0.2

Mineração Santa Rosa, Brazilian Quartz Mining Company has developed a line of

quartz materials that has become known as Zeta

Zeta 3 - Filler, paints, thermal & mechanical insulation materials, resins, abrasives, fine porcelains

Zeta 4 - Optical-grade glass (lenses) headlamp capsules for integrated circuits (Integrated boards);

Zeta 5 - Quartz glass (bulbs for lamps, types of glass for laboratory purposes, special Glasses that are resistant to

high temperatures and resistant to the action of acids. It is a silicon based compound that undergoes a treatment during the production process, in order to reach high degrees of purity. Zeta is available in the granulometry between 20 mesh & 635 mesh, and reaches 95.3 % of whiteness. Its basic chemical analysis is the following:

Quartz & Mica processing Rajasthan

Mechanical dressing of Raw Quartz to make clean and PURE QUARTZ GRANULES AND POWDER In-line optical camera sorting system - which helps segregate other particles and deliver the pure white Quartz particles. Granite Flooring in storage area and Stone-to-stone Crushing System - We want no compromises with the quality of our products; that’s

why there’s no metallic contact throughout the process of production. The cutting process makes sure to remove all the sharp edges and assure a smooth texture.

Air-tight Deck Screening System - To make sure that there’s no particle mixing, giving the uniformity in size of each particle. The most unique aspect, though, is our High Power Roller Magnetic System that treats each particle individually, separating the magnetic particles!

Auto Weighing and Bagging System - This makes each package identical. Quality Control with in-set regulations; experienced man force and advanced laboratory instruments

Value chain for Quartz

This fully automated production line of pure quartz chips & powder. It is capable of processing ~ 300 t/day.

This company owns more than 20 Quartz mines, which can provide supplies for almost 30 years to come!

A warehouse with granite flooring prevents contamination. This stores ~ 9,000 tonnes of raw Quartz material.

3,000 tonnes of processed material is ready-to-ship anytime.

Quartz, basic material with high tech uses

28,800 vph (4 Hz)

Pegmatite found at Spruce Pine, where Sibelco & Quartz Corp both have mines adjacent to each other. This ore was originally mined for feldspar and by-products of quartz & mica. Later it was realized the quartz was the purest found.

Feldspar Mica Quartz

Further processing

Final ultra high purity Quartz products IOTA© etc

The higher temperature minerals have a higher proportion of iron & magnesium, & are therefore considered to be mafic.

The lower temperature minerals are related to the opposite end of the compositional spectrum (lower in iron and magnesium, higher in silicon and oxygen), and are considered to be felsic.

Some minerals are clearly mafic, some are clearly felsic, and some fall in between these two extremes.

Transparent Quartz Tube GianTek Quartz, Shandong, China

• Used Electric Furnace drawing. Full length of transparent Quartz Tubes & Quartz rods.

• The high purity quartz products from local mines.

• At UV wave band 185nm, the wavelength - average about 70%, it is the best material for ozone-free sterilize lamp or sleeve quartz glass tubing.

• At UV wave band 253.7nm, the wavelength through rate average > 85%, for Ozone sterilization lamps or sleeve quartz glass tubing.

• Transparent Quartz tubes widely apply to Semiconductor, Lighting, and Electric heating Industrial field

www.gtquartz.com

Glass A B C

Density @ 20 (±05g/CM2)

2.2 2.21 2.21

Thermal Expansion (cm/cmoC)

5.4 x 10 -7 5.8 x 10 -7 6.6 x 10 -7

Thermal Conductivity (25 oC)

0.00323 Cal / cm - sec - oC

Young’s Modulus (x 103 kg/ mm2)

7.2 7.5 7.0

Softening Point (oC) 1730 1680 1660

Annealing Point (oC) 1215 1205 1165

Strain Point (oC) 1120 1100 1060

Resistivity (CM) @ 350 o

7 x 109 2.5 x 1010 5 x 1010

Dielectrical Constant (@ 1Mhz)

3.70 5.76 6.02

Transparent Quartz tube physical Properties:

Quartz ban heater car lacquer oven etc

Asian region growth is consuming more resources at an increased pace

Spruce Pine, North Virginia, USA. Source of highly pure quartz from both Sibelco /Unimin & Quartz Corp

• Sibelco & Quartz Corp separate feldspar, mica & quartz to yield a quartz concentrate that is used to produce high purity quartz, the industry standard for quality and purity.

Alaskite from Spruce Pine Photo : IOTAQuartz.com

The world’s highest quality quartz deposits are located near the town of Spruce Pine, North Carolina, USA. Situated in the heart of the Appalachian Mountains, the Spruce Pine mining district has been a source of mineral wealth for more than a century. These unique granites were first recognised for their extraordinary sheet mica, which were used as electrical insulation in early vacuum tube electronics. Today, silicon-based semiconductor device manufacturers use Spruce Pine quartz in the manufacturing chain. Plutonic (intrusive, abyssal) – magmatic rocks with phaneritic structure, relatively coarse-grained (>3 mm), where minerals are discernible by naked eye. Plutonic rocks slowly crystallized and cooled at depth.

Spruce Pine, NC aerial view

IOTA® Chemical analysis Typical values (ppm)

Source: www.sibelco.com/iota-high-purity-quartz/#product-range

Quartz Processing Sequence China.

High Purity Fused Silica Manufacturers include: • Solvay SA

Huber Engineered Materials Madhu Silica Private Limited Evonik AG Akzo Nobel NV Nalco Holding Company (Ecolab) PPG Industries inc Cabot Corporation Wacker Chemie AG Qingdao Makall Group Inc Covia / Unimin Anhui Cheng Shi Xin Energy Materials Technology Co., LTD Jinzhou Million Foster Quartz New

Material Co., LTD Heraeus Quarzglas RAESCH Shanghai Handsome Instrument Co. Donghai County Sharp Rose Quartz Products Co., LTD Yixing Innovative Optical Glass Co.,

Quartz production in India 2018

• Quartz 3.951 million tonnes

• Quartzite 1.018 million tonnes

• High Purity quartz ~31,000 tonnes

Industrial Quartz Crystal • Industrial cultured quartz crystal is electronic-grade quartz

crystal that is manufactured, not mined. In the past, cultured quartz crystal was primarily produced using lascas as raw quartz feed material.

• Lascas mining and processing in Arkansas ended in 1997. Cultured quartz crystal is produced in the United States.

• In addition to lascas, these companies may use cultured quartz crystal that has been rejected during the manufacturing process, owing to crystallographic imperfections, as feed material.

• The companies may use a mix of cultured quartz & imported lascas as feed material. In the past several years, cultured quartz crystal has been increasingly produced overseas, primarily in Asia.

• Electronic applications accounted for most industrial uses of quartz crystal; other uses included special optical applications.

Quartz crystal oscillator

Synthetic Quartz autoclave Lasca crushed quartz feedstock Seed crystals – 2mm thin shape Baffle – restricts flow of liquid between dissolving Water & potassium chloride heated 400 degrees C Lasca dissolved & forms saturated solution Silica is deposited on the seed quartz crystals 85% liquid and the top part used to increase pressure Time for this process - 2-4 months

Synthetic quartz manufacturing in Japan - for quartz watches, dash cams, digital cameras, self driving cars etc

Purity is 99.999% SiO2

Quartz - a Hard-Wearing Surface • Caesarstone® quartz surfaces have

exceptional hard-wearing properties - created from up to 93% natural quartz aggregates, organic pigments & enhanced polymer resins.

• Like natural stone, Caesarstone® quartz surfaces, or engineered stone has an equally long life-span.

• It will not crack or chip as easily as granite or slate & does not require regular sealing like natural stone.

• Caesarstone® quartz surfaces outperform natural stone & laminate surfaces for durability in all standardised testing and are easily repairable.

Synthetic Quartz benchtops • Cosentino

Group Caesarstone Compac Dupont Hanwha L&C LG Hausys Cambria Santa Margherita Zhongxun Vicostone Quartz Master Quarella

SEIEFFE Sinostone Technistone Samsung Radianz Bitto(Dongguan) Meyate Qianyun UVIISTONE Baoliya Gelandi Blue Sea Quartz OVERLAND Polystone

Quartz market size to maintain the average annual growth rate of 4% from US$6 b in 2014 to US$ 7.2b $ in 2019. Quartz market size will be further expanded, expected that by 2024, The market size of the Quartz will reach US$ 9.8b

QUARTZ BENCHTOPS - MANUFACTURERS PROCESS • Feeding & Mixing

• Raw materials are inspected, then fed into mixers and blended together.

• Moulding

• The mixture is then poured into a mould and formed into slab sizes of 306x144 cm

• Pressing

• The slab is then compacted by a special vacuum and vibration process at a pressure of 100 tonnes.

• Curing

• The slabs are moved to the curing kiln and heated to 90ºC for 45 minutes which gives them the ultimate strength and solidity.

• Polishing

• Slabs are then gauged, calibra ted and polished to a perfect finish in a wide range of colours and designs in one of our three textural surface finishes: Polished, Honed, or Textured.

• Quality Assurance

• Finally, the slabs pass through quality inspection to ensure a top quality product.

• Labelling

• Each slab is then marked and labelled with all relevant information.

BABA QUARTZ

www.babaquartz.com

Showroom with Caesarstone Quartz Tops

High Purity Quartz • Applications of high purity quartz in

the high tech industry are many. Main applications are in the semiconductor, high temperature lamp tubing, telecommunication, optics, and microelectronics.

• High purity quartz sand for quartz glass applications has to fulfil two quality requirements:

• High chemical purity and a good melting behaviour with low bubble content of the final quartz glass.

• Thermal treatment (calcination) of high purity quartz at temperatures up to 2,000°C improves the melting behaviour due to the removal of fluid inclusions.

Quartz Sintering Process • Quartz lumps production causes fragmentation of the quartz rock along its crystal &

impurities boundaries.

• Since crystal boundary contains most of the mineral impurities, the liberation of its crystal & impurities boundaries is very important in downstream processing.

• The calcination plus water quenching process is very effective to reach the aim of removing impurities.

• Apart from the common thirteen types of impurities such as K, Na, Li, Mg, Ca, Ti, Cr, Mn, Fe, Co, Ni, Cu, Al, the gas & fluid inclusion is also the main impurity needs to be removed.

• During the sintering process, the crack will present at gas & fluid content area that also contain some mineral impurities.

• Sintering plus water quenching process is a kind of selective fragmentation technology to select liberation of gas and fluid inclusion.

• In order to prevent the new contamination issues, high purity quartz glass is chosen as the sintering chamber.

1. Physical Quartz Processing Technology:

• Crushing & Grinding (Hosokawa Alpine)

• Optical Sorting (TOMRA & others)

• HIMS High Intensity Magnetic Separation

• Flotation

2. Chemical Quartz Processing Technology:

• Mixed acid treatment

• Hot Chlorination Calcination

• Thermal Treatment

• Free contamination sintering

Source: prominetech.com

Simplified summary – Steps of upgrading quartz

Note - not all quartz feedstocks are suitable for this upgrading process.

Source: Prominer, China

Hot Chlorination – method of purifying quartz • During the chlorination process high purity quartz is heated to

temperatures up to 1,200°C in a chlorine or hydrogen chloride gas atmosphere.

• Chlorination causes structural impurities (interstitial) to be forced from the crystal lattice into the gas phase

Note - handling chlorine gas at 1,200 degrees is a high dangerous situation- only specialist companies can achieve this step. Danger of releasing this around the site is very serious.

Grinding of Quartz – very specialist equipment

Considerations include:

• Extreme hardness of the feed material

• Contamination needs to be avoided

• Steep particle size distribution

• Sharp top cut

• Consistent end product quality

• Perfect wear protection

• No increase in Fe2O3 or Al2O3

Wear protected classifier

Wear protected Jet-mill

Simplified Processing Steps - upgrading Quartz to high purity grades

Upgrading Quartz to higher purity

Steps in Processing Quartz to higher value materials

The Current Leaders in High Purity Quartz production

High Purity Quartz Glass Product producers include: • Heraeus • Tosoh • Momentive • QSIL • MARUWA • Shin-Etsu Chemical • Raesch • Saint-Gobain • Feilihua • JNC QUARTZ • Jiangsu Pacific Quartz • Lianyungang Guolun

Russian Quartz district - Pervonachal'noe deposit, Chukotka Autonomous Okrug, Far eastern tip of Russia

Chukotka Mining and Geological Company

Main Quartz Mines of Russia • Maiskoe Au deposit, Chaunskii District (Chaun), Chukotka Autonomous Okrug, Russia

• Valunisty deposit, Chukchi Peninsula (Chukotka Peninsula; Chukotski Peninsula), Chukotka Autonomous Okrug, Russia

• Dvoinoi deposit, Ilirney ore district, Chukotka Autonomous Okrug, Russia

• Sentyabr’skoe deposit, Ilirney ore district, Chukotka Autonomous Okrug, Russia

• Iul'tin Mine, Iul'tinskiy Mining Complex, Chukotka Autonomous Okrug, Russia

• Svetloe Mine (Svetloye Mine), Iul'tinskiy Mining Complex, Chukotka Autonomous Okrug, Russia

• Tenkergin Mine (Volchye), Iul'tinskiy Mining Complex, Chukotka Autonomous Okrug, Russia

• Pervonachal'noe deposit (Krasnoarmeiskoe), Krasnoarmeiskii, Chukotka Autonomous Okrug, Russia

• Kupol deposit, Chukotka Autonomous Okrug, Russia

• Kontaktovyi Stock, Okhotsk-Chukotka belt, Chukotka Autonomous Okrug, Russia

• Kubaka deposit, Okhotsk-Chukotka belt, Chukotka Autonomous Okrug, Russia

• Rudnaya Sopka Ag-Au deposit, Chukotka Autonomous Okrug, Russia

• Ryveem river, Chukotka Autonomous Okrug, Russia

• Peschanka Cu deposit, Vesenniy, Chukotka Autonomous Okrug, Russia

• Tumanny prospect, Vesenniy, Chukotka Autonomous Okrug, Russia

• Volchiy Mine, Chukotka Autonomous Okrug, Russia

Global High Purity Quartz Market – Supply / Demand

Global Market – Applications compared

Electronics factory in Shenzhen, China

RAMMING MASS • Acidic Ramming Mass is used in the lining of induction

furnaces.

• Quality of Acidic Ramming mass is directly related to the heating performance of the furnaces.

• Better quality of lining results in the smooth working of furnaces, optimum output and better metallurgical control.

• It is manufactured under strict supervision of qualified & experienced work force.

• Proper check is exercised on magnetic process to assure iron free material & to assure proper composition of granules according to furnace capacity.

• The granulation of the mix are optimized keeping in view the furnace make and capacity, thus giving maximum and best results.

• It is characterized by thermal stability, corrosion resistance & wear resistance because it contains less binders, fire clay and moisture compared to plastic refractories.

Purity • Gives uniform erosion • Having high silica percentage>99% • Highly refined • No mica or iron content • Tailor made material • Give long lining life

Quartz Ramming Mass

Products

Premium Silica Ramming Mass

Snow white Silica Ramming

Ordinary Silica Ramming

Pre-Mix Silica Ramming Mass pm

Ingredient Quartzite Quartz Quartz Quartzite

Max. Temp 1720° C 1600° C 1500° C 1720° C

Max. Grain 5 mm 6 mm 6 mm 5 mm

Silica 98.5 99 98 98.5

Fe2O3 0.05 0.08 0.3 0.05

Boric Acid Nil Nil Nil (0.80-1.2) %

Location : 1-Shiva Ji Nagar, Opp. RSS Office, Udaipur 313001 (Raj.) INDIA

Market size by application

Sector using quartz US $ Millions

Semiconductor 295

Solar 220

Lighting 170

Telecom & Optic 150

Microelectronics 88

Other 45

Total 968

High Purity Quartz Market size

Market size $US Millions

Estimated tonnes Growth rate

2016 725 95,000 6.2

2018 850 105,000 6.5

2020 1,100 125,000 6.2

2025 1,300 160,000 6.3 Source: Stratum & Industry estimates

Main companies Tier Companies Location Market share (e) Comments

1 Unimin Spruce Pine, North Carolina, USA

75 Leader for several decades

1 Quartz Corp Spruce Pine, North Carolina, USA & Norway

8 Rapid growth since 2015

2 Russia Kystym, Russia 4 Japanese JV

3 Indian producers

Rajasthan 6 Smaller mines feeding several processing

plants

3 Chinese Producers

Lianyungang 6 Smaller mines feeding several processing

plants

4 Australian new entrants

W.A., Queensland 1 Under construction , Chinese JVs likely

5 Canadian new entrant

Montreal 0 Mainly for silicon metal

Source: Stratum & Industry estimates

Thank you..