AMG VANADIUM LLC June 2019 1 REYCLING SPENT RESIDUE UPGRADING CATALYST ENABLING A GREENER FUTURE THOMAS CENTA Recycling Metals Conference 2019 Indianapolis, IN
AMG VANADIUM LLC
June 2019
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REYCLING SPENT
RESIDUE UPGR ADING
CATALYSTENABLING A GREENER FUTURE
THOMAS CENTA
Recycling Metals Conference 2019Indianapolis, IN
CAUT IO NARY NO T E
THIS DOCUMENT IS STRICTLY CONFIDENTIAL AND IS BEING PROVIDED TO YOU SOLELY FOR YOUR INFORMATION BY AMG ADVANCED METALLURGICAL GROUP N.V. (THE “COMPANY”) AND MAY
NOT BE REPRODUCED IN ANY FORM OR FURTHER DISTRIBUTED TO ANY OTHER PERSON OR PUBLISHED, IN WHOLE OR IN PART, FOR ANY PURPOSE. FAILURE TO COMPLY WITH THIS
RESTRICTION MAY CONSTITUTE A VIOLATION OF APPLICABLE SECURITIES LAWS.
This presentation does not constitute or form part of, and should not be construed as, an offer to sell or issue or the solic itation of an offer to buy or acquire securities of the Company or any of its subsidiaries nor should
it or any part of it, nor the fact of its distribution, form the basis of, or be relied on in connection with, any contract o r commitment whatsoever.
This presentation has been prepared by, and is the sole responsibility of, the Company. This document, any presentation made in conjunction herewith and any accompanying materials are for information only and are
not a prospectus, offering circular or admission document. This presentation does not form a part of, and should not be construed as, an offer, invitation or solicitation to subscribe for or purchase, or dispose of any of
the securities of the companies mentioned in this presentation. These materials do not constitute an offer of securities for sale in the United States or an invitation or an offer to the public or form of application to
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presentation has not been independently verified. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy or completeness of the information or the
opinions contained herein. The Company and its advisors are under no obligation to update or keep current the information contained in this presentation. To the extent allowed by law, none of the Company or its
affiliates, advisors or representatives accept any liability whatsoever (in negligence or otherwise) for any loss howsoever a rising from any use of this presentation or its contents or otherwise arising in connection with
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Certain statements in this presentation constitute forward-looking statements, including statements regarding the Company's financial position, business strategy, plans and objectives of management for future
operations. These statements, which contain the words "believe,” “expect,” “anticipate,” “intends,” “estimate,” “forecast,” “project,” “will,” “may,” “should” and similar expressions, reflect the beliefs and expectations of
the management board of directors of the Company and are subject to risks and uncertainties that may cause actual results to differ materially. These risks and uncertainties include, among other factors, the
achievement of the anticipated levels of profitability, growth, cost and synergy of the Company’s recent acquisitions, the ti mely development and acceptance of new products, the impact of competitive pricing, the ability
to obtain necessary regulatory approvals, and the impact of general business and global economic conditions. These and other factors could adversely affect the outcome and financial effects of the plans and events
described herein.
Neither the Company, nor any of its respective agents, employees or advisors intend or have any duty or obligation to supplement, amend, update or revise any of the forward-looking statements contained in this
presentation.
The information and opinions contained in this document are provided as at the date of this presentation and are subject to change without notice.
This document has not been approved by any competent regulatory or supervisory authority.
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GLOBAL TRENDS
CO2 emission reduction, population growth,
increasing affluence,
and energy efficiency
DEMAND
Innovative new products that are lighter, stronger,
and resistant to higher
temperatures
SUPPLY
AMG sources, processes, and supplies the critical
materials that the market
demands
AMG IS A CRITICAL
MATERIALS COMPANY
AMG: MITIGATING TECHNOLOGIES
Products and processes saving raw
materials, energy and CO2 emissions
during manufacturing
(e.g., recycling of Ferrovanadium)
AMG: ENABLING TECHNOLOGIES
Products and processes saving
CO2 emissions during use
(e.g., light-weighting and fuel efficiency in
the aerospace and automotive industries)
LEADER IN ADVANCED TECHNOLOGIES
TO ADDRESS CO2 REDUCTION
A GLOBAL IMPERATIVE FOR THE 21ST CENTURY
CO2 REDUCTION
AMG AT A G LANCE
AMG IS A GLOBAL
SUPPLIER OF
CRITICAL
MATERIALS TO:
FY 2018 REVENUE
TRANSPORTATIONENERGY INFRASTRUCTURE SPECIALTY METALSAND CHEMICALS
BY END MARKET: BY REGION:BY SEGMENT:
42% Europe
37% North America
16% Asia
5% ROW
33% Technologies
67% Critical Materials
30% Infrastructure
21% Specialty Metals & Chemicals
40% Transportation
9% Energy
Market leading producer of highly
engineered specialty metals and
vacuum furnace systems
~3,300Employees
~$1 billionAnnual Revenues
At the forefront of
CO2 Reduction
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AMG BUSINESS SEG MENT S
AMG
TECHNOLOGIES
AMG
CRITICAL MATERIALS
AMG’s conversion, mining,
and recycling businesses
AMG’s titanium alloys, vacuum
systems and services business
• Vanadium
• Spent Catalyst Recycling
• Superalloys (Chrome)
• Aluminum Master Alloys
• Brazil (Tantalum & Lithium)
• Antimony
• Graphite
• Silicon Metal
• Titanium Alloys & Coatings
• Furnaces
• Heat treatment services
36% Infrastructure 22% Specialty Metals
& Chemicals
32%
Transportation
10% Energy
4% Infrastructure
15% Specialty Metals
& Chemicals
70%
Transportation
11% Energy
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CRIT ICAL RAW MAT ERIALS: AMG PRESENCE
• The EU identified 27 critical raw
materials* to the European economy in 2017, focusing on two determinants: economic importance and supply risk
• The US identified 35 critical materials* which are vital to national security and
the economy, primarily through assessing supply risk
• AMG has a unique critical materials
portfolio comprising:
o 7 EU critical raw materials
o 10 US critical raw materials
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Heavy REE
Light REE
Magnesium***
Germanium
Gallium
Beryllium
PGMs
PhosphateRock
Borate
TungstenVanadium
Aluminum
Tin Molybdenum
Nickel
Antimony
Silicon Metal
Natural
Graphite
Niobium
SU
PP
LY
RIS
K
ECONOMIC IMPORTANCE
Chromium MetalTantalum
Melted or treated by
AMG v acuum sy stems
Produced by
AMG
Critical raw materials
identif ied by the US
and produced by AMG
EU Critical Raw
Materials
Titanium
Lithium
* 2017 list of Critical Raw Materials for the EU, September 2017; US draft list of Critical Materials per February 16, 2018 announcement by U.S. Department of the Interior.** Chromium Metal (a subcategory of chrome ore) is not identified by the EU report. *** AMG possesses technology license patent for production of Magnesium products
Coking Coal
Baryte
Helium
Bismuth
Natural Rubber
CobaltFluorspar
Hafnium
Scandium
Indium
Phosphorus
Cambridge Ohio USA
VISION
AMG Vanadium is committed to being the leading hazardous waste processor in the world converting this waste into valuable products
MISSION
To acquire Vanadium (V), Nickel (Ni) and Molybdenum (Mo) bearing waste materials and convert them, in an environmentally beneficial manner, into valuable goods for the benefit of our stakeholders
Spent CatalystFerrovanadium
Ferronickel-molybdenumHSLA Steel
Stainless Steel
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AMG VANADIUM’S V IS IO N AND MISSIO N
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INDUST RY- LEADING ENVIRO NMENTAL SO LUT IO N
AMG’s process is the
gold standard in spent
catalyst recycling
▪ Recycled Raw Materials
▪ Utilize vanadium-bearing secondary materials and hazardous wastes
▪ 100% secondary aluminum
▪ Industry-Leading Process
▪ No waste water
▪ Lowest overall emissions (solid waste, air emissions, waste water) in
the industry
▪ Highest industry conversion: 99% of solids produced are saleable
material, only 1% are landfilled
▪ FeV is an Energy Efficient Microalloy
▪ Vanadium alloy steels reduce steel requirements by 20-40% thereby
drastically reducing CO2 emissions in construction and infrastructure
projects worldwide
▪ Refineries view AMG as the premier spent catalyst recycling
facility in the world
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VANADIUM
• Vanadium is a chemical element with symbol V and atomic number 23
• Vanadium occurs naturally in about 65 minerals and in fossil fuel
• It is produced in China and Russia from steel smelter slag, in South Africa and Brazil from magnetite directly, and other countries from the recycling of spent catalyst and ashes resulting from the refining, gasification or burning of heavy oil
• Vanadium was discovered in 1801
• The first large-scale industrial use of vanadium was in the steel alloy chassis of the Ford Model T
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• Atomic Weight 50.9415
• Atomic Number 23• Category Transition Metal
• Electrons per Shell 2, 8, 11, 2
• Oxidation States 5, 4, 3, 2, 1, -1, -3• Melting Point 2183 K (1910ºC)
• Boiling Point 3680 K (3407ºC)
Confidential
Ferrovanadium Production Processes
Red = Current AMG V Processing Route
F ERRO VANADIUM PRO DUCT IO N PRO CESSES
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Confidential
Secondary17%
Primary 16%
Co-Product
67%
Primary Route
Co-Product Route (Steel Producers)
Secondary Route
W HAT IS SPENT CATALYST ?
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Fresh Catalyst Composition
Aluminum
OxideVanadium Nickel Molybdenum Sulfur Carbon
80-90% 0-0.3% 1-10% 1-10% 0% 0%
Spent Catalyst Composition
Aluminum
OxideVanadium Nickel Molybdenum Sulfur Carbon
30-40% 8-15% 3-5% 1.5-3% 5-12% 20-30%
• Catalyst removes metals and sulfur from crude oil during refining
process
• AMG Vanadium then recovers these metals from the spent catalyst
• Metals include Vanadium (V), Nickel (Ni), Molybdenum (Mo) and
Aluminum Oxide (Al2O3)
• Nickel and molybdenum are contained in the fresh catalyst; all
vanadium and part of nickel come from the oil
Source: AMG-Vanadium Management
Distillation of
Crude Oil
Residual
Upgrading
Confidential
Ferrovanadium (Ferovan®)
AMG VanadiumCambridge, Ohio
Ferronickel-molybdenum
(FeNiMoly®)
Calcium Aluminate
Slag (Revan™)
Boiler Slag/Fly AshOil Burning
Power Plants
Oil Refineries
Primary
Furnace(melting and pre-
reduction)
Slag Transfer
Oil Gasification
Plants
Calcium Sulfate (Lime
Add™)
Hazardous Valuable Product
Secondary
Furnace(reduction)
Roaster
&
FGD
PRO PRIETARY PYRO METALLURG ICAL PRO CESS
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PRODUCTS > VALUE PROPOSITION > APPLICATIONS >
Ferovan®
(Ferrovanadium)
• High strength low alloy (HSLA) steel used for construction,
shipbuilding, pipeline, bridges, energy, automotive, etc.
• Rail steels, tool and die steels
• Rebar
FeNiMoly®
(Ferronickel-
molybdenum)Alloy addition for stainless steel and NiMo low-alloy steels
Revan™
(Calcium Aluminate)Slag-conditioner for the steel industry
LimeAdd™
(Calcium Sulfate)Solidification and stabilization
Future Product
High Purity V2O5
(Vanadium Pentoxide)
Vanadium redox flow batteries (VRFBs) require vanadium electrolyte to
store energy and enable sustained use of
renewable power sources
AMG VANADIUM’S PRO DUCT S
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CAMBRIDG E O PERAT IO NS - F ULL METALS RECLAMAT IO N
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Confidential
Rebar Installation
Exterior View
Multi-layer subfloor
liner system cutaway
KEY FEATURES
• 78,000 square feet• Segregated inventory bins • Multi-layer subfloor liner system to
capture free-flowing liquids
Spent Catalyst
Storage
RAW MAT ERIAL ST O RAG E BUILD ING ( O I L C O NTA I N M E N T )
Felt Liner Protection
Upper Liner
Drainage Net
Lower Liner
Concrete Slab – 8”
Gravel – 8”
Concrete Base – 36”
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SPENT CATALYST MUST BE PRO PERLY MANAG ED
• The Goal: safe, environmentally sound recycling of spent catalyst
• Spent catalyst has unique properties that must be taken into account by the generator to ensure management – recycling –reclamation is performed in a way that is protective of the environment.
• K171/172 Listed Hazardous Waste in the U.S.
• High sulfide content
• Self-heating
• Pyrophoric
• Reactive
• High polynuclear aromatic hydrocarbon (PAH)
• High oil content
• High metals content
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Confidential
SPENT CATALYST LEACHABIL IT Y
Roasted vs As Received Spent Catalyst (start)
Analyte
(mg/L)
Water Analysis
Roasted
Catalyst
Raw
Catalyst
Tap
Water
Sulfur 814 44 32.1
Nickel 600 0 <0.01
Molybdenum 475 0 <0.01
Sodium 268 121 123
Calcium 260 51 29.4
Vanadium 69 1 <0.01
Aluminum 29 0 0.046
Magnesium 15 14 10.6
Roasted vs As Received Spent Catalyst (72 hours)
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O PT IO NS AVAILABLE T O REF INERIES IN NO RT H AMERICA T O DAY
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B E S T I N C L A S S S PE NT C ATA LY S T TR E ATM E NT
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AMG V – Roasting + FMR Thermal Desorption Hydrocarbon Stripping
Raw Material StorageTotally enclosed building and conveyors
built to RCRA standardsOutside in totes or roll-off boxes Outside in steel tank or railcar
Oil ContainmentDual liner system under entire floor for
oil containmentNo identified secondary containment.
Tray under outdoor silo. Poor
secondary containment.
Elimination of Pyrophoric StatusConversion of metal sulphides to oxides
eliminates pyrophoric nature
Sulphur is not removed in this process.
Significant pyrophoric risk exists.
Sulphur is not removed in this process.
Significant pyrophoric risk exists.
SO2 ControlFlue Gas Desulphurization unit with
over 96% control
Desulphurization occurs in future
processing with unknown controls.
Some SO2 generation likely occurs due
to uncontrolled self heating.
Desulphurization occurs in future
processing with unknown controls.
Some SO2 generation likely occurs due
to uncontrolled self heating.
Control of Leachability Roasted catalyst is stored indoors prior
to conversion to ferroalloys
Desorbed catalyst is stored in
supersacks. Fire risk exists.
Stripped catalyst is stored in
supersacks. Fire risk exists.
Metals Reclamation Full recovery of vanadium, nickel, and
molybdenum. Alumina recovery as well
None. Material must still be roasted
(convert sulphides to oxides) before
metals reclamation.
None. Material must still be roasted
(convert sulphides to oxides) before
metals reclamation.
Final Product DestinationMetals sold to steel mills as alloys.
Alumina sold as slag refiner.
Desorbed catalyst shipped to reclaimers
in Asia for desulphurization and metals
reclamation
Desorbed catalyst shipped to
reclaimers in Asia for desulphurization
and metals reclamation
SUSTAINABIL IT Y
In 1987, the UN Brundtland Commission
defined sustainable development as "meeting the
needs of the present without compromising the
ability of future generations to meet their own
needs." (Report of the World Commission on
Environment and Development.)
In 1987, sustainability might have been seen as a
nice thing to do
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In 2019, sustainability is seen as a must-do
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CLIMAT E CHANG E
Two numbers to remember:
3 – the middle class is expected to grow by 3.3 billion people (from 2 billion to over 5 billion) by 2030
2 – The predicted average global temperature increase by 2030 is two degrees Celsius (2°C)
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* https://www.brookings.edu/wp-content/uploads/2017/02/global_20170228_global-middle-class.pdf
** https://www.popsci.com/what-happens-if-earth-gets-2-degrees-warmer#page-2
The need to act is urgent!
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SPENT CATALYST REG ULAT O RY ENVIRO NMENT
US EPA regulations promulgated under the Resource Conservation Act (RCRA) on August 6, 1998 (63 FR 42110) listed as hazardous wastes:
• spent hydrotreating catalysts (K171); and
• spent hydrorefining catalysts (K172)
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Confidential
CARBO N F O O T PRINT O F F ERRO VANADIUM
0
10
20
30
40
50
60
70
Primary Mining AMG
Kg C
O2
/ k
g F
eV
Estimated CO2 Emission by Process
AMG Process12.6 kg CO2 eq
per kg FeV
Primary Mining63.4 kg CO2 eq
per kg FeV
Source: Environmental Resource Management (ERM) AMG Ferovan® Carbon Footprint Interim Report dated October 1, 2018
Base TechnologyPrimary Production
(mining)
AMG Vanadium’s
Enhanced TechnologySecondary Production
Primary Ore
Crushing
Mi l l ing
Magnetic Separation Spent Catalyst
Roasting Roasting
Leaching
Des ilication
Precipitation
Barren Solution Handling
Ammonium vanadate processing to V2O5
Ferrovanadium Production Ferrovanadium Production
Ferrovanadium Ferrovanadium
FeV represents AMG’s average ferrovanadium chemistry of 57.8%
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PYROMETALLURGICAL RECYCLINGFerrovanadium is produced from oil refinery wastes with no mining or raw material beneficiation
required
Base Technology
Primary Mining and Processing
Kgs CO2/kg FeV 63.4 kg
Enhanced Technology
Spent Refinery Catalyst Recycling
Kgs CO2/kg FeV 12.6 kg
AMG production mitigates about 239,000 MT of CO2 emissions per year
Mitigating
Source: Environmental Resource Management (ERM) AMG Ferovan® Carbon Footprint Interim Report dated October 1, 2018
FeV represents AMG’s average ferrovanadium chemistry of 57.8%
MIT IG AT ING CO 2 REDUCT IO N – MIN ING VS. RECYCLING
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ENABLING CO 2 REDUCT IO N – F ERRO VANADIUM IN HSLA ST EEL
Ferrovanadium can be added to structural steel to reduce the quantity of steel required to perform the same function.
• A steel alloy containing vanadium results in a 20 - 40% reduction in mass.
• CO2 is reduced through the value chain with lighter weight steel, enabling more efficient transportation and fabrication.
Carbon Steel
Kgs CO2/kg steel 2.00 kg
HSLA Steel
Kgs Co2/kg steel 1.50 kg
Conventional Material Enhanced Technology
Enables 25.9% reduction in steel, yielding significant CO2
emissions savings
HSLA Steel using AMG vanadium enables the saving of more than 3.1 million
metric tons of CO2 per year
Source: Environmental Resource Management (ERM) AMG Ferovan Carbon Footprint Interim Report dated October 1, 2018
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AMG: MITIGATING TECHNOLOGIES
Products and processes saving raw
materials, energy and CO2 emissions
during manufacturing
(e.g., recycling of Ferrovanadium)
AMG: ENABLING TECHNOLOGIES
Products and processes saving
CO2 emissions during use
(e.g., light-weighting and fuel efficiency in
the aerospace and automotive industries)
A GLOBAL IMPERATIVE FOR THE 21ST CENTURY
CO2 REDUCTION
LEADER IN ADVANCED TECHNOLOGIES
TO ADDRESS CO2 REDUCTION
AMG has developed into a leader in enabling technologies
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Confidential
T HE END
Thomas Centa Executive Vice President
AMG Vanadium LLC
60790 Southgate Road
Cambridge, OH 43725 USA
Tel +1 740 435 4656 | Cell 740 630 4492
www.amg-v.com
THANK
YOUfor your time and
attention
to Heritage for
hosting and inviting
us
Confidential
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