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Serial No.:KCMO2013.4.10

I N D U S T R I A L C H A N N E L

Belt Conveyor Pipe Belt Conveyor

I N D U S T R I A L C H A N N E L

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Contents

1. Background 1

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11

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2.Products

3 Typical Projects

1.1 About Us

1.2 Location

1.3 Social Responsibility

1.4 KDHI Capacity

1.5 Strong R&D Capacity

1.6 Management System

1.7 Honors

1.8 Workshop Photos

1.9 Global Market

2.1 Main Products

2.2 Production Equipment

2.3 Main Quality Control Equipments

3.1 Vale Project

3.2 UAE Project

3.3 Mongolia OT Project

3.4 Pakistan Project

3.5 Project in China

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Channel for Quality

Shanghai Keda Heavy Industry Group Co., Ltd.

(KDHI) is China's leading designer and manufacturerof belt conveyors & bulk handling systems.

Established in 1993

Registered Capital: 100 Million RMB (US$15 Million)

Employees: 516 including 86 strong R&D facility

1.2 Factory Location

FavorSea Industrial Channel Limited is privilegedto represent KDHI as its' global marketing partner; itfulfils a similar role for other leading innovators from

China's OEM mining and engineering sector. The OEMproduct portfolio and range of services covers mining,

mineral processing plant design and contracting, technologysolutions, EPC contracting, capital mining machinery &equipment, technical and after-sales support as well asfast-track JIT delivery of spares & consumables.

1 Background

1.1 About Us

To date, KDHI has provided donations to build two HopeSchools in poor remote areas.

YingPing Hope School

JunHao Hope School

2008 Anhui Dabie Mountain (Designated Poor Area)

2011@ Sichuan Guangan (Hometown of Mr Deng)

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Major component items produced in 2011: 330,000 sets of

rollers and 2,800 sets of pulleys.

Factory Production Area: 145,500 m (additional 62,000m will be brought into operation in 2013)

Administration/R & D Facility Area: 101,000 m (additional

43,000 m will be brought into operation in 2013)

KDHI is ranked No 1. Chinese conveyor manufacturer

according to per capita production.

KDHI Location Benefits

KDHI has an 86 strong R&D, comprised of Nationally

recognised leading experts in the belt-conveyor and

1.5 Strong R&D Capacity

To date KDHI has obtained 95 belt conveyor patents.

Drive Pulley with Rubber Lagging

(Split Bearing Housing)

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QC System

1.6 Management System

ISO9001:2008 Quality Control

Split Bearing Housing

(With Expansion Ring)

Transition Idler

(Rapid Replacement)

Typical Head Frame

Transition Idler

(Adjustable angle)

Typical Arrangement of Intermediate Frame

and Return Idler (Large Belt Width)

EHS System

ISO9001:2008 Quality Control

Experienced Project Management

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Contract Credit AAA Grade

Employees Most Satisfactory Enterprise

Certification of Contract Credit Grade

1.7 Honors

High Technical Enterprise Certificate

Vice director company of China Heavy Machinery Industry

Association (CHMIA)

China Contract Credit Certificate

National Model Worker of China

Shanghai Famous Mark (KDHI)

And other more than 200 various honors

By now, KDHI has got more than 200 honors. Each

honor is created by hard work, honesty and

responsibility, which is also the motto of each

member of KDHI.

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Work Shop Area 1#

1.8 Workshop Photos

Work Shop Area 2#

Assembly WorkshopMetal Working Workshop

Ware House

Idler Workshop

Office BuildingPulley Workshop

Construction Workshop Painting Workshop

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Work Shop Area 3# (2013)

KDHI will move current pulley and idler equipments into 3# workshop and purchase further automatic equipments for

pulley and idler.

KDHI will move all manufactories for domestic market into 4# workshop. Shanghai Factory will mainly focus on the

global market.

Work Shop Area 4# (Joint Venture in Shanxi 2012)

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No. Customer CountryBelt Width

(mm)Length(m) Year

1 Saint Paul Sugar plant Brazil 1400 3850 2005

2 Coal Mine Canada 1200 3850 20063 Ore Terminal Australia 800 1350 2006

4 Quarry Russia 5001200 3560 2007

5 Fatima Fertilizer Plant Pakistan 650800 4162 2008

6 Quarry Russia 1200 1376 2008

7Tanjung Jati B UnitPower Plant (CHEC)

Indonesia 12001600 2560 2009

8Castle Peak PowerStation (XIZIHIC)

Hongkong 800 6270 2009

9 Fujairah Port (MCC) UAE 1600 4626 2009

10 Komatsu Ltd. Japan 800 4261 2009

1.9 Global Market

Vale S/A

Metso (China)

TAKRAF (China)

Shenhua Group

Zhenhua Group

Bao Steel Group

Zoomlion Group

Indonesia

Pakistan

Japan etc.

11 Vale CLN Project Brazil 18002200 4414 2010

12 TISCO Steel Vietnam 6501200 2793 2010

13 Komatsu (China) Ltd. Japan 800 90 2010

14 Belt Conveyor Ltd. Russia Pulley 14 sets 2011

15 Vale APOLO Project Brazil 12002000 3105 2011

Ch l f Q li

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Project B (mm) V (m/s) L (m)Capacity(t/

h)Belt Typical Point

ShenDongMine 1400 3.5 3000 3000 1800S Long Distance

Shendong Mine 1400 4 3000 3000 ST2000 Long Distance

Shendong Mine 1400 4 6000 3000 PVC1800S Long Distance

Shendong Mine 1600 4 6000 4000 PVC1800SLong Distance

and Wide

JinfengShuanggouMine 1600 4.5 6832 3500 ST2500Long

UndergroundDistance

Buertai Mine 2200 4.7 620 7000 ST3500Long Distance

and Large Flow

Qipanjing Mine 1400 4.2 1426 1100 ST3500 Max. Angle

Xishan Guandi Mine 1200 3.5 5406 1200 ST3500 High Lifting

Jincheng Mine 1600 5.6 1580 2500 ST5000 High Lifting

NingmeiMine 1600 4.5 2700 2500 ST4500 High Lifting

Yinchuan Yuhua Mine 1400 4 1110 1200 ST4000 Max. Angle

Yitai Shuancigou Mine 1800 4.8 1080 4200 ST5400 High Lifting

Fuxin Haizhou Mine 1200 2.5 835 450 ST5000 High Lifting

Qipanjin Mine 1400 4.2 1426 1100 ST3500 Max. Angle

HuangLingNo2# Mine 1600 4.8 2854 4200 ST3500 Large Flow

Long

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2Products2.1 Main Products

Belt Conveyor

Moveable Belt Conveyor Screw Belt Conveyor

Pipe Belt Conveyor

Heavy Duty Pulley Pulley Set

h f

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Conveyor Steelpiece

Automatic Idler Assembly Line Automatic Idler Painting Line

Steel Works

Automatic Bearing House

Presser

Automatic Welding

Machine

2.2 Production Equipments

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Automatic Bearing

and Sealing Presser

Automatic PulleyWelding Machine

Automatic Pulley HubWelding Machine

Automatic Test Machine Roller Runout

Rotation Resistance Axial Displacement

DC Drilling Machine Automatic Pipe Bender

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2500 Vertical Lathe

C6031 3000 Face

Lathe

Vertical Boring & Milling

Machine

Automatic Welding

Machine of Pulley Circle

Multi-head NC Cutting MachineCNC Planer Type

Milling Machine

Channel for Quality

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UT Test of Pulley

3 Typical Projects

3.1 Vale Project

UT Test of Pulley Welding

- Pulley longitudinal welding and round welding are submerged arc weld (SAW)

- After welding, cylindricity check and shaping is adopted to ensure average pulley shell thickness

- UT test is adopted before pulley heat treatment and stress relieving- Dynamic and static balance analysis are adopted after pulley lagging

- The roller shaft is precision ground to ensure accurate alignment.

- The last equipment of roller assembly line is testing machine (test ratio is 5%) for below items, the records are issued

to ensure manufacturing quality stability online.

Radial runout

Rotation resistance

Axial displacement

Raw material traceabilityWelding (20 KDHI welders are qualified

with AWS certification)

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During manufacturing, KDHI applied pre-assembly for main frame of

steel structure to ensure assembly accuracy.

KDHI has partnership with USA ceramic lining supplier Flexco, and

during the procedures of pulley lining, KDHI had Flexco experts at site

lining operation.

KDHI makes ITP for each project and strictly follows. During Vale

project, KDHIs quality control management was admired by

supervision team of SGS.

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Considering the extra long sea transportation distance between China

and Brazil, KDHI chose the package without cost consideration.

Packing Arrangement

Pulley Dynamic Balance Test Data Book Check

Channel for Quality

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C f Q y

Shanghai Port Storage

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Shipping Protection

Packing Arrangement

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KDHI Brazilian Inland Transportation Alignment

Site Erection

Ship Unloading

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Site Erection

Site Erection

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Site Supervision Service

Site Erection

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Operation Site and KDHI Site Supervision Engineer

Operation Site

3.2 UAE Project

3.3 Mongolia OT Project

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Length=20km (42 sets)B1000-B1600

L th 4k (8 t )

Operation Site

3.4 Pakistan Project

3.5 Project in China

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Waigaoqiao Power Plant (SHENERGY)Length=18km (42 sets)

B1200-B1800

Jiangsu Shagang Project Length=2.466km400

Fujian Kemen Terminal Length=5km (17 sets)B1800

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Nayong Power Station

Length=7.1km4002nd Longest pipe belt conveyor in Asia

Nayong Power Station

Length=7.1km4002nd Longest pipe belt conveyor in Asia

Nayong Power Station

Length=7.1km4002nd Longest pipe belt conveyor in Asia