NERYUNGRINSKY INDUSTRIAL PARK

2015

PROJECT TEAM

Initiator: South Yakutia Development Corporation, a public company

South Yakutia Development Corporation has been working since 2007 on the investment project of national importance, called “Integrated Development of South Yakutia”.

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NERYUNGRINSKY INDUSTRIAL PARK

PROJECT GOAL – CREATING NEW SERVICE AND ASSEMBLY OPERATIONS AS WELL AS PRODUCTION LINES BASED ON INTEGRATED PROCESSING OF LOCAL RAW STUFF AND WASTE, INCLUDING:the recovery of rare earth metals (REM) from coal mining waste; coal-to-gas conversion and derivation of petroleum products; recycling of solid rubber (heavy-duty) tires; solid waste recycling.

Anticipated investments - 280m USD

Sources of demand – intra-regional and Russian domestic markets(for pilot projects), Asia-Pacific markets

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INFRASTRUCTURE AND LOGISTICS

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The industrial park is created at the site of existing industrial facilities in the mineral-rich district.

Brownfield and Greenfield land parcels from 2 to 30 hectares are in adequate supply.

The industrial park area has essential infrastructure and it is possible to transport finished products over Transsib and BAM railroads as well as over the “Lena” federal route.

Large industry-related stock has been accumulated in the Neryungri district as a result of activities within the South Yakutia industrial cluster.

Operating in the region are major mining concerns Yakutugol and Kolmar (mining and enrichment of coke-coals).

Construction of Taezhny MPIW (iron ore mining and dressing) is in the pipeline.

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CHOICE LOCATION

PRESENT STATE OF PROJECT EXECUTION

The project is at the pre-investment stage

the search of the industrial park residents and investors is under way; the project concept is being developed; the concepts of projects to be deployed on the sites of IP Neryungrinsky

are taking shape; IP Neyungrinsky’s sites are being sorted out.

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MARKET OF RARE EARTH METALSMARKET OF TIRE RECYCLING

PRODUCTSThe key REM consumers are China (54%), Japan and South Korea (24%), Europe (mainly Germany and France, 13%), USA (8%).

By 2020 the global demand for REM may double and reach 185-200 thou tons a year.

In 2012 Russia imported 430.5 tons of metals and compounds and exported 4.977 thou tons of these.

Russia is dependant on the supply of almost the entire range of REM and their compounds from abroad, so there are good prospects of launching REM recovery production facilities, as part of the import replacement program.

The market is underdeveloped in the macro region.

A major Vladivostok-based processor – up to 2 thou tons.

The main problem is underuse of rubber crumb in road building (projects need to be adjusted) as well as in land improvement and landscaping projects (arenas, walkways, tracks and suchlike).

Contracts have been signed with ore mining ventures of South Yakutia for the recycling of big reserves of quality solid rubber.

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MARKET AND ITS KEY PLAYERS

INVITATION FOR INVESTORS AND RESIDENTS

We’ll select plots of land and organize their

connection to grids and infrastructure

We’ll collect source data and help in feasibility report

preparation

We’ll provide administrative support

from regional authorities and local government bodies

We’ll organize engagement with

potential consumers in the Republic, including

with major manufacturers

If needed, we’ll take care of building production and storage facilities

We are open for any forms of collaboration.

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127473, Moscow,11b Seleznevskaya St

+7 (495) 232-42-44office@sy-corp.ru

http://www.sy-corp.ru

Thanks for your attention!

SOUTH YAKUTIA DEVELOPMENT CORPORATION