Zinc NacionalA company owned by Grupo Promax

Zinc Nacional Profile

Zinc Nacional is part of Grupo Promax, a diversified family owned, privately held company.

Based in Monterrey, Mexico with focus on production and commercialization of gypsum products,

wall plaster, drywall, zinc compounds and recycled paperboard.

Overview:

• Founded in 1917.

• The largest manufacturer of wall plaster, ceramics gypsum and drywall in Latin America.

• The largest manufacturer of Zinc Oxide and Zinc Sulfate in North America.

• Products sold in over 25 countries across the globe.

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Zinc Nacional S.A. is one of the biggest Zinc compounds producers in the world.

A 100% Mexican company founded in 1952, focused on Zinc Oxide and Zinc Sulfate production.

About Zinc Nacional

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ZN is founded

1st Waelz KilnWet Plant

ZnO 70%

ZnO 78%

Zinc Sulfate

Feed

GradeHigh purity

Zinc sulfate

French Process

Sulfuric Acid Plant 1st Summer CampClean Industry

Certificate

Paperboard

Plant

Currently, our products competitively reach over 18 countries.

Our quality, customer service and global pricing policy position us as leaders in the zinc oxide and sulfate markets.

Zinc Nacional is a leading global supplier of the animal feed, ceramics, fertilizers, paint, rubber, and chemical industries.

About Zinc Nacional

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SDR Acquisition

Fluidized bed dryer

French Process

Expansion

Location: Monterrey, Mexico

Main Products: Zinc Oxide, Zinc Sulfate

Capacity: 250,000 ton/yr

Location: Millport, Alabama

Main Products: Waelz Zinc Oxide, Iron Concentrate

Capacity: 340,000 ton/yr

Acquired in 2009

Location: Aliaga, Izmir, Turkey

Main Products: Waelz Zinc Oxide, Iron Concentrate

Capacity: 120,000 ton/yr

Joint venture started in 2014 between ZN and Cinkom

Started operations in February 2017

Location: Suncheon, South Korea

Main Products: Waelz Zinc Oxide, Iron Concentrate

Capacity: 120,000 ton/yr

Started operations in June 2017

Location: Munice, Indiana

Main Products: Waelz Zinc Oxide

Capacity: 130,000 ton/yr

Joint venture with Heritage Environmental Services

In construction, start-up expected for 4Q 2020

Total Capacity:

960,000 ton/yr

WSP

Zinc Nacional has a global footprint

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Zinc Oxide Applications

Rubber IndustryCeramic and Glass

CompositionsAnimal Feed

Lubricating Oil

AdditivePaint Pharmaceutical

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Zinc Sulfate Applications

Fertilizers Foods Mining

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Production processes in Zinc Nacional

Pyrometallurgical process (Dry plant)• Used for Zinc Oxide production using rotary kilns.

Hydro-metallurgical process (Wet plant)• Used for Zinc Sulfate production by means of tank reactors,

filter press, and fluidized bed dryer.

French process (Oxzinal plant)• Used for high purity Zinc Oxide production by means

of melting and evaporating SHG Zn.

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Steel scrap processing in Electric Arc Furnaces produces EAF Dust

Steel Scrap

Electric Arc

Furnace

Baghouse

Collection

EAF Dust

EAF Dust: Electric Arc Furnaces like Nucor, Steel Dynamics,

North Star Blue Scope, etc. typically referred to as “mini mills”, melt a

blend of scrap steel, including a large amount of galvanized scrap

steel which contains zinc. In the melting stage, zinc is evaporated

and trapped in the air handling (baghouses) of mills.

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The world production of crude steel by mini-mills is approximately 25-29% of the total crude steel production

World Crude Steel Production by Process(%)

World Crude Steel Production by Process(Million Tons)

0

400

800

1,200

1,600

2,000

’16’11 ’14’13’12 ’15 ’17 ’18

29% 29% 28% 26% 25% 25% 28% 29%

70% 70% 71% 74% 74% 74% 72% 71%

’11 ’12

100

’13

100

’15’14 ’16 ’17 ’18

100 100 100 100 100 100

Oxygen Blown Converters Open Hearth FurnacesElectric Furnaces

10Source: World Steel Association

During 2018, the production of crude steel by electric arc process (mini-mill) increased 10.1%

Production of Crude Steel by Electric Arc by Region (2018)Production of Crude Steel by Electric Arc

442 452 451426

406 412

473

520

0

100

200

300

400

500

600

’15’14’12’11

Million Tons

’13 ’16 ’17 ’18

+10.1%

251

520

80

70

36

0

100

200

300

400

500

600

Million Tons

Asia European

Union

(28)

North

America

28

Middle

East

28

Other

Europe

C.I.S.1

14

South

America

2018

13

Africa

1

ROW

The main producing countries are: China, United States, India, Japan, Turkey, South Korea, Iran and

Russia. These countries account for ~66% of total steel production by electric arc

% of total

production

of crude steel28.2 25.6 25.1 25.3 28.029.329.2 28.8

111) An alliance of former Soviet republics, including: Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, and UzbekistanSource: World Steel Association

The countries that generate the most EAFD from scrap are USA with 22%, India with 18%, Turkey with 11% and Italy with 9%

384

322

201 200 187

150130

102 97 8670 66

48 47 45 40 40 27

300

0

100

200

700

800

Russia PortugalItaly

KTon

USA Spain Germany Brazil PolandEgypt Saudi

Arabia

FranceTurkey Greece

760

613

IranChina South

Korea

India ThailandMexico Luxem-

bourgh

Main countries that generate EAFD2018

12Source: World Steel Association and internal estimates

There are ~ 35 plants in the world that recycle EAFD

Plant LocationsMain EAFD Recyclers

The largest percentage of installed capacity is in Europe and the American continent,

approximately 75% of the total market

Himeji Refine

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Pyrometallurgical Process

WaterPelletizing

process

EAF

Dust

Pellets

CokePellets

Back to

pelletizing

Waelz process

feed control

To Waelz Process

Bag house

Bag house

Pelletizing Process

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Waelz Process

The Waelz process is a method of recovering zinc and other relatively low boiling point metals

from EAFD, mined ores and other recycled materials using a rotary kiln (Waelz kiln).

Zinc Oxide Waelz Kiln Process

Discharge

Iron

Concentrate

ZnO

Production

(Gaseous)

ZnO reacts FeO reacts

Coke

Combustion (throughout the

kiln)

Water

EvaporationEAF Dust

and Coke

Feed

Pellets

Coke

65% Iron

concentrate

35% Waelz

Zinc Oxide

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Hydrometallurgical Process

Leaching

Purification

Drying

DechlorinationElimination of dissolved salts as sodium and

potassium chloride (mixed salt).

Leaching process with sulfuric acid,

precipitation of lead as sulfate.

Elimination of undesired elements such as

Pb, Cd, Cu and Mn.

Preparation of finished product according to

customer specs (powder and granular).

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Metallic

Zinc

French Process

French

process

Heat

Pure

Zinc

Oxide

Collector

Melting

pot

Evaporation

crucibleFrench

process Zinc

Oxide

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Thank You

“Our Zinc is working for you, everywhere”

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