Project proponent: Korund LtdKondopoga, the Republic of Karelia

2009г.

1. Strategy of social solidarity became a discussion topic in one of working groups in the 4th Krasnoyarsk Economic Forum; the idea is that “the population should feel its involvement into solving anti-recessionary tasks”.

2. The similar idea was voiced by the vice prime-minister Alexandr Zhukov in conclusions of brainstorming. He said: “The whole country can not be a stadium watching what the Government is going to do in the crisis. We can overcome the crisis, if everyone, if we together undertake drastic measures”.

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BASALT VALLEY

Academic laboratory Energy block Life support system

Design bureau of basalt materials, goods and technology development

Inhibiting composition Design bureau for equipment and technology development for production of basalt materials and goods

Equipment production plant Equipage and tools production plant

Monocrystal basalt casting plant

Gas-basalt goods plant Roving production plant (basalt fibre)

Nonwoven fibre , wool plant

Casting

Powder

Scales

Gas-basalt blocks and goods

Keramzit

Pipe

Tissue

Constructive goods

Wool, mats,shell

Sheet

Profile

Constructive goods

Residential ECO-settlement

Basalt mining quarry

Plant of press molding of basalt powder goods

Boards

Bushings, inserts

Constructive goods

Certification center

Specialists’ training center

Binding agent production plant

Household plot

1. Basalt goods endurance is 15 times higher than of steel ones;

2. Density and, consequently, weight is 4 times less;3. Warranty on pipes, fitting and other basalt goods

is 50 years and more, as they do not rust; and vagabond electron currents do not take place in them;

4. They are nonreactive to acid and alkaline conditions

5. They do not deposit crust and fall-out in pipes and boilers;

6. They can “breath”, so they soak temperature from -200 up to +2000 C;

7. Basalt casting soaks t=10000 C;8. Basalt barrel stands instead of 600 shots up to

6500 shots; 9. Advantages of basalt and its products by its

characteristics over many other materials are endless!

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Magmatic rock basalt, diabase, gabbro, etc.

Magmatic rock basalt, diabase, gabbro, etc.

QuarryExtraction and processing

QuarryExtraction and processing

Crushed stone

Crushed stone

Raw material for foundry

casting work

Raw material for foundry

casting work

SandSand

Monocrystal casting

Monocrystal casting

Staple fibre (wool)

Staple fibre (wool)

ScalesScalesGas-basaltGas-basaltContinuous fibre (roving)

Continuous fibre (roving)

PRODUCTS MADE OF BASALT, GABBRO AND OTHER MAGMATIC ROCKS

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Fields of application of basalt productsFields of application of basalt products

Aircraft industryAircraft industry Motor industryMotor industry

Cryogenic technology and equipment

Cryogenic technology and equipment

Road construction Road construction

Agriculture and agricultural products processing

Agriculture and agricultural products processing

Oil and gas industryOil and gas industry

EngineeringEngineering

Metallurgy Metallurgy

Industrial and civil construction Industrial and civil construction

Electric ingineering and communicationElectric ingineering and communication

EnergeticsEnergetics

Human environment protectionHuman environment protectionCoal, mining and concentrating industry

Coal, mining and concentrating industry

Chemical, petrochemical, cox-chemical, pulp and paper industriesChemical, petrochemical, cox-chemical, pulp and paper industries

ShipbuildingShipbuilding

Defense industryDefense industry

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Composite, constructive materials, structures working in conditions of elevated vibration, fluctuating load,

heat insulation of thermal equipment. 10.04.23 7

Engineering

Composite and heat-insulating material for producing automobile deafeners, facia, space fillers, plastics, reinforcing material for brake blocks and clutch plates production, non-inflammable composite materials, cord for auto decks. Materials for producing fuel tanks, receivers for LPG and compressed natural gas. Corrosion preventing, bumping proof and enduring coatings for automobiles’ bottom sides.10.04.23 8

Motor industry

Composite materials resistant to sea water, heat-insulation of marine installations, ship hulls, bulkheads: steam-waterpipes, inlet, filling and fuel tankers, corrosion preventing paint coatings of ship hulls. Small ship building – structures of ship hulls, deck erections.

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Shipbuilding

Composite constructive materials and goods, heat-insulation of coaches, non-inflammable composite materials, electric-insulating materials, resistant paint coatings.

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Railway coach manufacturing

Composite materials, heat-insulation of thermal equipment of steam boilers, turbines, heat pipelines, high-voltage insulating materials, power transmission line support, core of high-voltage power lines.

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Energetics

Non-inflammable heat-insulating and constructive materials, fire-protective doors, cast pipes and containers, cable passages, materials for radiative protection, radiative substances storage containers.

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Atomic energy

Reinforcing material for boards’ production, electric-insulating materials,

constructive materials for electronics bodies.

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Electronics industry

Chemically and enduring protective coatings of containers, pipelines, oil pipelines.

Non-inflammable coatings and composite materials.

Fire-resistant composite materials, etc10.04.23 14

Petrochemical industry

Geonets of bituminous concrete surface of roads, airstrips of airdromes. Water engineering– reinforcing materials for construction of dams, materials for irrigation. Construction of port buildings, sea platforms - basalt-plastic reinforcing and constructive materials.

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Roadway surfacing

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а – for fluids with reinforcing componentsх – for chemically aggressive mediaп – for cold drinking waterг – for hot water of household water supplyс – for other media

Fields of application of pipes

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Basalt woolBasalt woolHeat-insulating boadsHeat-insulating boads

Insulating shellInsulating shell MatsMats Heat-resistant cardboard

Heat-resistant cardboard

Corrugated sheeting

Corrugated sheeting

Raw materials for spinning

Raw materials for spinning

FibreFibreSoundproof boards

Soundproof boards

With binding additives

With binding additives

Foil-coated mats Foil-coated mats Broached matsBroached mats

PRODUCTS MADE OF BASALT WOOL

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Basic advantages of insulants made of rocks:•Good heat and sound insulation; •Organic security; •Elastivity;•Long life;•Fire resistance;•Do not absorb moisture;•Keeping size and physical characteristics within all service life.

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Sustained working temperature regime -260 +960 C0

Exploitation life without worsening of technical characteristics 50 – 100 years

Acoustic absorption coefficient 0.9-0.992%

High endurance in comparison to metal, density and weight is lower in 4 times

Water absorption 0.3%

High chemical resistance to acid and alkaline conditions

High resistance to mold, microorganisms and corrosion

Protection from electromagnetic and radiative emanation and information readout

Basalt composites can replace steel and all other types of reinforcing fibreglass (1 kg of BC/ 1 kg of steel) 1kg/8.6 kg

1. Satisfaction of constantly growing demand for high quality ecologically

friendly insulant;

2. Development and support of hi-tech productions in the region;

3. Creating new jobs;

4. Import substitution.

The goal of the project:

Set of Russian production of heat-insulating materials by types of

materials, in % of the total production output

 Indicator RUR USD

 Discount rate%  18.00 8.00

 Payback period, months.  43 43

Discounted payback period, months 50 46

 Average rate of return, %  44.04 44.04

 Net present value610,418,09

751,593,882

 Internal rate of return, %  34.37 34.37

Project efficiency

Kolsky peninsula (Murmansk region and Karelia),

Urals (Bashkiriya, Chelyabinsk, Orenburg, Sverdlovsk and Perm regions),

Western Siberia (Novosibirsk region, Kuzbas and Altai, Tomsk region),

Eastern Siberia (Krasnoyarsk Territory, Hakasiya, Yakutiya, Buryatiya),

Far East (Habarovsk Territory, Sahalin island).

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Project advantages

1.Proximity of raw materials’ bases.

2. Availability of own power facilities Р = 5.3 MW.

3. Technical possibility to connect to gas supply and use gas as a fuel.

4. Own water intake.

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5. Availability of own railway approaching lines.

6. Location in proximity to Moscow – Murmansk and Saint-Petersburg – Murmansk automobile roads and railways.

7. Possibility to set up production and shipment of other building materials, including fill materials.

8. Proximity to constituent entities of the North-West Federal District, which have no such production facilities.

KORUND LTDThe Republic of Karelia,

Kondopoga, Zavodskaya St., 2а