Qi h i S lt L k “G M ”Qinghai Salt Lake “Green Mg”Q g g

Drives Green manufacturingDrives Green manufacturing

Qi h i S lt L k I d t C LtdQinghai Salt Lake Industry Co. Ltd.Q g y

Shijun Wang Guoli YuShijun Wang Guoli Yu

21 May 201721 May 2017

- 1 -

Qinghai Salt Lake “Green Mg” drives industrial Green manufacturingQinghai Salt Lake  Green Mg  drives industrial Green manufacturing

C h i d l t d tili ti f S lt L kComprehensive development and utilization of Salt Lake resources R t i l t f “G M ”---- Raw material support for “Green Mg”

Hydro-Solar-Wind energy combination in QinghaiHydro Solar Wind energy combination in Qinghai ---- Energy support for “Green Mg”Energy support for Green Mg

Advanced bischofite direct electrolysis processAdvanced bischofite direct electrolysis processT h l t f “G M ”---- Technology support for “Green Mg”

“Made in China 2025” and lightweight demandg g---- Policy support for “Green Mg”---- Policy support for Green Mg

- 2 -

C h i d l t d tili ti f S lt L kComprehensive development and utilization of Salt Lake resources ---- Raw material support for “Green Mg”pp g

Qinghai Salt Lake Mg integrated project targets 100kmt annual capacityQinghai Salt Lake Mg integrated project targets 100kmt annual capacity, with MgCl2 as raw material and using advanced process based on g g pNorsk Hydro’s proven technologyNorsk Hydro s proven technology.

- 3 -

C h i d l t d tili ti f S lt L kComprehensive development and utilization of Salt Lake resources ---- Raw material support for “Green Mg”pp g

EDCCoal Gasify EthyleneMethyl

Alcohol PVCt

EDCAlcohol

art

Cl2

wch

Brine Purificati

Dehydrti Electrolysis Mgow ion ation Electrolysis Mg

s flo

Coke oven gas HCL

ess

Coking Coal C koce

coal washing Coke

pro

C l i A t lon p

Coal slurry and Electrical smelting

Calcium Carbide

Acetylene PVCtio gangue

smelting ne

gra

Limeston Calcinti Lime

lteg

e ation Acetylene sludgein

t

sludge

CO2um 

Waste SodiumCO2

siu

Waste brine

Sodium Carbonatene

sagn

Coal CogenerationSteam/eleM

a

Coal Cogeneration ctricity

• Using waste brines from KCl fertilizer production as raw material applying Norsk Hydro proven electrolysis technologyUsing waste brines from KCl fertilizer production as raw material, applying Norsk Hydro proven electrolysis technology with additional breaking through and optimization on brine purification and dehydration processes.

• 100kmt production facility has been established for the first stage, and the second stage expansion has been started.

- 4 -

C h i d l t d tili ti f S lt L kComprehensive development and utilization of Salt Lake resources ---- Raw material support for “Green Mg”pp g

Using Hydro-Wind-Solar mixed green power and waster brine rich of MgCl2 as raw Us g yd o d So a ed g ee po e a d aste b e c o gC as amaterial Qinghai Salt Lake Mg project is superior to traditional Pidgeon processmaterial, Qinghai Salt Lake Mg project is superior to traditional Pidgeon process using high carbon containing dolomite or magnesite as raw material, in terms of g g g g ,environmental friendlinessenvironmental friendliness.

- 5 -

C h i d l t d tili ti f S lt L kComprehensive development and utilization of Salt Lake resources ---- Raw material support for “Green Mg”pp g

Qinghai Salt Lake Mg electrolysis process applies the most environmental friendlyQinghai Salt Lake Mg electrolysis process applies the most environmental friendly d i d t h l i It d d ff th “G t”M i th lddesign and technologies. It produces and offers the “Greenest”Mg in the world and helps downstream users to develop various GREEN solutions.and helps downstream users to develop various GREEN solutions.

- 6 -

C h i d l t d tili ti f S lt L kComprehensive development and utilization of Salt Lake resources ---- Raw material support for “Green Mg”pp g

On 22nd Aug. 2016, President Xi visited the gQinghai Salt Lake project He highly appreciatedQinghai Salt Lake project. He highly appreciated h S l L k ll h i dthe Salt Lake resources as well as the integrated

exploration design and processexploration design and process.

- 7 -

Comprehensive development and utilization of Salt Lake resourcesComprehensive development and utilization of Salt Lake resources R t i l t f “G M ”---- Raw material support for “Green Mg”

Qinghai Salt Lake will be committed to comprehensive development andQinghai Salt Lake will be committed to comprehensive development and f futilization of salt lake resources and construction of integrated production

chain aiming to build an ecological Mg-Li-K park and offering low carbonchain, aiming to build an ecological Mg Li K park and offering low carbon i i t i l t th k temission green raw materials to the market.

Sodium saltSodium salt Potassium saltPotassium salt

Brine miningBrine mining B i t t tiB i t t ti S di lt dS di lt d High Mg waste brine PurificationBrine miningBrine mining Brine transportationBrine transportation Sodium salt pondSodium salt pond Potassium salt pondPotassium salt pond

DehydrationElectrolysisMg alloy castingMg alloy ingot

- 8 -

H d S l Wi d bi ti i Qi h iHydro-Solar-Wind energy combination in Qinghai---- Energy support for “Green Mg”gy pp g

El t i itElectricity

Th l t t d l t h h d lThe latest development shows hydro-solar-wind green power accounts for around 90% in Qinghai’s local power production.90% in Qinghai s local power production.

H d S l Wi dHydro‐Solar‐Wind90%~90%

Coal powerCoal power ~10%~10%

- 9 -

H d S l Wi d bi ti i Qi h iHydro-Solar-Wind energy combination in Qinghai---- Energy support for “Green Mg”gy pp g

1）Origin of 3 major Chinese rivers (Yangtze, Yellow and1）Origin of 3 major Chinese rivers (Yangtze, Yellow and Canglan) best Hydro power resources;Canglan), best Hydro power resources;

2）Good solar resources in Chaidam Basin area Millions2）Good solar resources in Chaidam Basin area. Millions kV l t ti h b b ilt i G l dkV solar power stations have been built in Golmud area.

P）

Power3）Qinghai 330KV, 750KV power grid and local solar advantages g gpower base have formed a strong power grid which

gpower base have formed a strong power grid, which

th l f th M l t l i l tensures the power supply of the Mg electrolysis plant.

- 10 -

H d S l Wi d bi ti i Qi h iHydro-Solar-Wind energy combination in Qinghai---- Energy support for “Green Mg”gy pp g

Qi h i S lt L k i l i t i t t th l l h t lt i h tQinghai Salt Lake is planning to integrate the local photovoltaic power, photo-thermal power and wind power in Golmud region to set up company scalethermal power and wind power in Golmud region to set up company scale micro grid With technolog inno ation to achie e direct application of solarmicro-grid. With technology innovation, to achieve direct application of solar power to the electrolysis DC power supply system, so as to secure a powerful, p y p pp y y , p ,stable and reliable power supplystable and reliable power supply.

- 11 -

Advanced bischofite direct electrolysis processAdvanced bischofite direct electrolysis process---- Technology support for “Green Mg”gy pp g

Production processProduction process

1) P t h l ith ti i ti b d t Cl2 t i l f PVC1) Proven technology with optimization, by-product Cl2 as raw material of PVC production;p ;

2) No need exploring and mining for raw materials, no large amount of wastes and dusts produced in the production phase Minor amount of waste waterand dusts produced in the production phase. Minor amount of waste water

t i i hl i ill t ti ff t t S lt L kcontaining chlorine will not cause negative effect to Salt Lake.

- 12 -

Advanced bischofite direct electrolysis processAdvanced bischofite direct electrolysis process---- Technology support for “Green Mg”gy pp g

Production processProduction process3) P ti i t i li d t li M Cl2 t ti f di3) Pneumatic conveying system is applied to realize MgCl2 automatic feeding

for large-scale magnesium electrolysis cell.for large scale magnesium electrolysis cell.

4) Advanced protecticve gas system, minimize the negative impact to the ) p g y g pworking condition as well as the environmentworking condition as well as the environment.

- 13 -

Advanced bischofite direct electrolysis processAdvanced bischofite direct electrolysis process---- Technology support for “Green Mg”gy pp g

Production processProduction process5) Cooperation with Magontec to produce various Magnesium alloys directly5) Cooperation with Magontec to produce various Magnesium alloys directly

using Mg meltusing Mg melt.

- 14 -

Advanced bischofite direct electrolysis processAdvanced bischofite direct electrolysis process---- Technology support for “Green Mg”gy pp g

Prod ction processProduction process

6) Low carbon emission. No carbon containing raw material, no carbon producing6) Low carbon emission. No carbon containing raw material, no carbon producing electrolysis process and green energy with further improvement by directelectrolysis process and green energy with further improvement by direct applying solar power.pp y g p

- 15 -

Advanced bischofite direct electrolysis processAdvanced bischofite direct electrolysis process---- Technology support for “Green Mg”gy pp g

Current project progressCurrent project progressThe construction has been finished, and whole process commissioning completed, gtrial load of dehydrated MgCl2, pure Mg, Mg alloy as well as Mg diecast part had t a oad o de yd ated gC , pu e g, g a oy as e as g d ecast pa t adbeen producedbeen produced.

On 31 Dec 2016 MgCl2 dehydration process finished commission;On 31 Dec. 2016, MgCl2 dehydration process finished commission;I J 2017 M d d 30k t M it i t d t hIn Jan. 2017, pure Mg was produced. 30kmt Mg capacity is expected to reach in 2017, together with continuous equipment optimization.g

- 16 -

MgCl2 dehydration unitMgCl2 dehydration unitMagnesium Electrolysis workshopMagnesium Electrolysis workshop

M f ilitiMg facilitiesgBrine purification: Commissioning at the end of 2015 at achieved gdesigned capacity. SO4

＝ <15ppm, B complete g p y 4 pp , premoval;;Dehydration unit:Dehydration unit:Commissioning whole process at the end of 2016Commissioning whole process at the end of 2016. M Cl2 t t >96% M (OH)Cl <0 4%MgCl2 content >96%, Mg(OH)Cl <0.4%.Electrolysis cell:yCommissioning on June 2016. Trial production g pcontinues with 2-3mt pure Mg output. More cells are

Magnesium alloy ingot castingMagnesium alloy ingot castingcontinues with 2 3mt pure Mg output. More cells are in preparation for operation Magnesium alloy ingot castingMagnesium alloy ingot castingin preparation for operation.

- 17 -

A ill f ilitiAncillary facilitiesSodium carbonate:

ySodium carbonate: Commissioning in 2014 180kmt and over 300kmtCommissioning in 2014, 180kmt and over 300kmt production achieved in 2015 and 2016 respectivelyproduction achieved in 2015 and 2016 respectively.PVCPVC: Commissioning in 2016 and now in steady operationCommissioning in 2016, and now in steady operation.Coke: Commissioning in 2016, and now in steady operation.DMTO and PP: Construction finished and commissioning planned in 2017.g pMethyl alcohol:Methyl alcohol: Construction finished in 2016 and in commissioningConstruction finished in 2016 and in commissioning.P t hPotash: Commissioning in 2016 and now in optimizationCommissioning in 2016 and now in optimization.Coal washing: Commissioning in 2015, and now in steady operation.

- 18 -

Advanced bischofite direct electrolysis processAdvanced bischofite direct electrolysis process---- Technology support for “Green Mg”gy pp g

Visions of Qinghai Salt Lake green Mg

With i ti d i t t t d l l i l f i dl M Li K kWith innovation-driven strategy, to develop ecological friendly Mg-Li-K park;Preparation of second stage expansion at proper time for million mt capacity, to p g p p p p y,

lead the Mg industry;g y;To build world class Mg material base China Li metal base and world class KTo build world class Mg material base, China Li metal base and world class K

product baseproduct base.

- 19 -

“Made in China 2025” and lightweight demandMade in China 2025 and lightweight demand---- Policy support for “Green Mg”y pp g

1 Chi ’ “M d i Chi 2025” St t d fi th li ht i ht f1. China’s “Made in China 2025” Strategy defines the lightweight of new energy cars as one of the key tasks.energy cars as one of the key tasks.

（资料来源：新能源汽车网）

- 20 -

“Made in China 2025” and lightweight demandMade in China 2025 and lightweight demand---- Policy support for “Green Mg”y pp g

2. Lightweight demand of automotive industry welcomes Qinghai Salt g g y Q gLake green MagnesiumLake green Magnesium.

Chinese manufacturing industry is speeding up the development of low carbonChinese manufacturing industry is speeding up the development of low carbon d t h l i A di t Chi ’ Mi i t f I d t ’green process and technologies. According to China’s Ministry of Industry’s

requirement, Green Manufacturing must be implemented in the whole process and all industry sectorsall industry sectors.

21 century increases environmental concerns globally Lightweighting becomes21 century increases environmental concerns globally. Lightweighting becomes

critical demand in automotive, railways, aircrafts and other industries, particularly in

the new energy vehiclesthe new energy vehicles.

- 21 -

“Made in China 2025” and lightweight demandMade in China 2025 and lightweight demand---- Policy support for “Green Mg”y pp g

2. Lightweight demand of automotive industry welcomes Qinghai Salt g g y Q gLake green MagnesiumLake green Magnesium.

Perfect timing and policiesg p

The new energy vehicle plan in “Made in China 2025” strategy willThe new energy vehicle plan in Made in China 2025 strategy will l h li h i h d f i i d Thi li daccelerate the lightweight trend of automotive industry. This policy and g g y p y

trend becomes the perfect timing for Qinghai Salt Lake’s “Green Mg”trend becomes the perfect timing for Qinghai Salt Lake s Green Mg .

- 22 -

“Made in China 2025” and lightweight demandMade in China 2025 and lightweight demand---- Policy support for “Green Mg”y pp g

2. Lightweight demand of automotive industry welcomes Qinghai Salt g g y Q gLake green MagnesiumLake green Magnesium.

F bl d t h lFavorable resources and technology

Qinghai Salt Lake unique advantages on MgCl2 resources clean energyQinghai Salt Lake unique advantages on MgCl2 resources, clean energy,

dry and oxygen-poor conditions are the solid ground of green Mg supplydry and oxygen poor conditions are the solid ground of green Mg supply.

- 23 -

“Made in China 2025” and lightweight demandMade in China 2025 and lightweight demand---- Policy support for “Green Mg”y pp g

2. Lightweight demand of automotive industry welcomes Qinghai Salt g g y Q gLake green MagnesiumLake green Magnesium.

Cooperation networkCooperation network

Q SQinghai Salt Lake welcomes and is open to collaborate with all parties to enhance the technology development for new Mg alloys new processes and new Mg alloythe technology development for new Mg alloys, new processes and new Mg alloy

li ti th h it ll b ti i ti l tfapplications, through its collaborative innovation platform.

- 24 -

E dEndEnd

Thanks for your continuous concernThanks for your continuous concern

d t t Qi h i S lt L k Mand support to Qinghai Salt Lake Mg pp g g

project and welcome you all to visitproject, and welcome you all to visit

us!us!

- 25 -

- 26 -