Investment Projects of the Penza Region in Production

INVESTMENT PROJECTS OF THE PENZA REGION

PRODUCTION OF CONSTRUCTION AND FINISH MATERIALS

Investment projects

1. Building of the multisectoral enterprise on extraction and processing of the green earth with capacity 400 thousand tones per year; Location: Penza region, Nizhny Lomov district Territory: 2 ha

2. The construction of plant manufacturing cement fiberboard plates and cement fiberboard wall panels at Nikolskiy district of Penza Region; Location: Penza Region, Nikolsky District, Settlement Nochka Territory: 11 ha

3. The building of the plant for ochreous clay extrusion and mineral pigments production with capacity 4 000 tonnes per year; Location: Russian Federation, Penza region, Shemisheisky district

4. The factory on production, crushing and grading of road metal with capacity 250 thousand m3 per year; Location: Russian Federation, Nikolsky district, village Rebrovka Territory: 123,1 ha

5. Extraction of painting sand, manufacture of mineral pigments for the further use in building and paint and varnish industry; Location: Penza region, Kuznezky district, the village of Nizhny Abljazovo Territory: 4,5 ha

1. Building of the multisectoral enterprise on extraction and processing of the green earth (glauconite)

General information Item Description Site type Resource Purpose of the site use Building of the multisectoral enterprise on extraction and processing of the green earth with capacity 400 thousand tones per year End product Pure glauconite sand Deposit name Bolshie Khutora –1 Natural resource Green earth sands Site location Russian Federation, Penza region, Nizhny Lomov district, 5 km to the East from the city of Nizhny Lomov Local site situation 5 km to the East from the city of Nizhny Lomov Total plot area 20 000 m2 (2 hectare) Current land status Agriculture lands Buildings on site no Owner Partnership «Bolshie Khutora» (ownership in common) Contact information Penza Region Development Corporation JSC Tel.: +7(8412) 68 08 37 e-mail: [email protected] web-site: www.krpo.ru Favorable conditions for A growing demand for glauconite from agriculture and industry of investment project Penza region, other regions; realization Proximity to the green earth deposit; Human resources; Labor costs minimization possibility; Support for the project from the Penza Region Government.

Transport infrastructure Item Description Motor transport Nearest federal highway – М5 (Ural: Moscow – Chelyabinsk), 3 km communication from the site. Access roads: dirt road. Nearest major cities Penza – 112 km, Moscow – 527 km, Samara – 529 km, Saratov – 307 km, Nizhniy Novgorod – 361 km. Railway communication The Kuybyshevskaya Federal Railway 6.5 km from the site, nearest station « Nizhny Lomov» railway station 6.5 km from the site. No branch line on site. Air communication Nearest airport - the city of Penza, 112 km away from the site. Water communication Nearest river port – the city of Syzran, 360 km away from the site. Сведения об обеспечении No fence, technical security system or video monitoring. безопасности Nearest fire station and police station – 7 km away from the site.

Civil engineering infrastructure Electricity supply Service company - Open Joint Stock Company "Penzaenergo". A 1.35 MW power line is 3 km away from the site (the village of Chernaya pjatina). A 1.35 MW power line is 3 km away from the site (the village of Chernaya pjatina). There is a draw-off point 110/10 KW (the city of Nizhny Lomov, Zavodskaya Str.) Gas supply Service company - Limited Liability Company "Penzaregiongaz". A 159 mm gas pipeline is 1 km away from the site. Water supply There is an opportunity to connect to the existing water supply system, to drill a borehole. Sewerage No sewerage system in the immediate surroundings. No sewage disposal plants or sewage collectors on site. There is an opportunity to build the sewerage systems. Heat supply No heat supply network nearby. No on-site heat sources. Communications GSM 900/1800 mobile communication available; operators: Beeline, Megafon, SMARTS GSM. Wire telephone communication (Open Joint Stock Company "Volgatelekom").

Deposit data Item Description Deposit name Bolshie Khutora –1 Minable natural resources Green earth sands Resource properties Sands are fine-grained, with ferrum stains, feeble silestone, clay, (chemical composition) containing quartz from 35 to 98 %. Green earth is bright green with the extended and roundish shape. The content of green earth in fraction <0,01 from 35 to 98 %; in fraction 0,25 – 0,1 from 2 to 35 %. Average extent of sand deposits fluctuates from 120-140 m, width – 70-90 m. Capacity of strata change from 1 to 7 m, 3-4 m upon average. Explored reserves volume Stocks of the green earth sands are counted up on category С2 2608 thousand m3. Additional information On category Р1 4 876 thousand m3.

2. Construction of plant manufacturing cement fiberboard plates and cement fiberboard wall panels at Nikolsky district of Penza Region

General information Name Description The construction of plant manufacturing cement fiberboard plates The planned use of the site and cement fiberboard wall panels at Nikolskiy district of Penza Region Fiberboard plate (size 2 400 x 600 mm, thickness 50 mm). The annual volume of production is 71 400 m3. The maximum capacity of the equipment makes up to 102 000 m3 Final product per year in case of only cement fiberboard plates release. Wall panel made of cement fiberboard (size 6 000 x 2 600 mm, thickness 400 mm). The annual volume of production is 28 500 m3. Natural resource Cement fiberboard Dorozhnaya St., 2А, Settlement Nochka, Nikolsky District, Penza The location of the site Region, Russian Federation The total area of the land 110 000 sq.m (11 hectare) plot Infrastructure on the plot No The constant steady demand for construction materials from the Favorable conditions of enterprises of the Penza region and nearby areas; implementation of the existence of the necessary labor resources; investment project possibilities labor costs minimization; support of the project from the Government of the Penza region.

Transport infrastructure Name Description The nearest federal highway М5 (Moscow-Chelyabinsk) is 3 km Automobile communication from the site. Access roads are a soil highway. Penza – 112 km; Moscow – 780 km; Samara – 430 km; Saratov – Distance to the large cities 350 km; Nizhny Novgorod – 400 km. The federal railway «Kuibyshev railway» is located in 6,5 km from the site. The nearest railway station «Nochka» is located in Railway communication 2,5 km from the site. There is no railway line at the site territory. Air communication The nearest airport is in the city of Penza in 118 km from the site. There is no protection; technical security system and video Information security observation.

Engineering infrastructure Electric power supply The serving company is JSC Penzaenergo. Water supply The local system of water supply (artesian well) There is no sewerage networks nearby. There is no internal Sewerage treatment facilities and stores on the site. There is a possibility of construction of treatment facilities. There is no heat supply network nearby. There is no internal heat Heat supply sources on the site. Mobile communication of GSM 900/1800 standard. Communication There are operators such as Beeline, MegaFon, SMARTS GSM. Wire telephone communication (OJSC «VolgaTelecom»).

3. The building of the plant for ochreous clay extrusion and mineral pigments production

Item Description Site type Resource Purpose of the site use The building of the plant for ochreous clay extrusion and mineral pigments production with capacity 4 000 tonnes per year End product Ferrioxide pigments Deposit name Vorobjovskoe deposit Natural resource Ochreous clay Site location Russian Federation, Penza region, Shemisheisky district, 5 km to the North from the village of Vorobjovka Local site situation 5 km to the North from the village of Vorobjovka, 9 km to the South-West from the village of Shemisheika Buildings on site no Owner Administration of the Shemisheisky district Тел.: (84159) 2-17-80 E-mail: [email protected] Contact information Penza Region Development Corporation JSC Tel.: +7(8412) 68 08 37 e-mail: [email protected] web-site: www.krpo.ru Favorable conditions for Steady demand on pigments in Russia, coused by paint and investment project varnish industry stabilization and substantial use growth of the realization given raw materials in the process of manufacture of building materials; Closely located to primary product: ochreous clay; Human resources: Number of the able-bodied citezens on 1/1/2010 – 29294, from them 2692 are unemployed; Labor costs minimization possibility; Support for the project from the Penza Region Government.

4. The building of a factory of road metal production

General information Item Description Site type Resource Purpose of the site use The factory on production, crushing and grading of road metal with capacity 250 thousand m3 per year End product Road metal and gravel made of dense rock for building industry GOST (State standart) 8267-93 Deposit name Anshleisko-Rebrovskoe Natural resource Road metal made of rock Site location Russian Federation, Nikolsky district, village Rebrovka Local site situation 3.7 km to the South- West from the village Rebrovka, 4,6 km to the North from the village Anshleika Plot area for resource 1 221 200 m2 (122,1 hectare) production Plot area on factory 10 000 m2 (1 hectare) building Current land status Agriculture lands Buildings on site no Owner Municipal office – Nikolsky district Contact information Penza Region Development Corporation JSC Tel.: +7(8412) 68 08 37 e-mail: [email protected] web-site: www. krpo.ru Favorable conditions for High consumer properties of road metal (high quality of rock). investment project The quality indicators of road metal corresponds to GOST (State realization standard) 8267-93 «Road metal and gravel made of dense rock for building industry» requirements; A growing demand for building materials (road metal) from Penza region and neighbor regions plants; Closely located major customer market: proximity to the main customers and roads, to the sandstone deposit; Human resources; Labor costs minimization possibility; Support for the project from the Penza Region Government.

Transport infrastructure Item Description Motor transport Nearest federal highway – Samara-Yljanovsk, 6 km away from communication the site Nearest major cities Penza – 125 км

Railway communication The Kuybyshevskaya Federal Railway; nearest station – Nochka railway station. No branch line on site. Air communication Nearest airport - the city of Penza, 139 km away from the site. Security measures No fence, technical security system or video monitoring. 7

Civil engineering infrastructure Electricity supply Service company - Open Joint Stock Company "Penzaenergo". Gas supply Service company - Limited Liability Company "Penzaregiongaz". A gas pipeline is 7 km away from the site. Water supply There is no water supply on the site. Sewerage No sewerage system in the immediate surroundings. No sewage disposal plants or sewage collectors on site. There is an opportunity to build the sewerage systems. Heat supply No heat supply network nearby. No on-site heat sources. Communications GSM 900/1800 mobile communication available; operators: Beeline, Megafon, SMARTS GSM. Wire telephone communication (Open Joint Stock Company "Volgatelekom").

Deposit data Item Description Deposit name Deposit «Anshleisko-Rebrovskoe» Minable natural resources Road metal Resource properties The rock strata consist of the sandstone. The sandstone is quartz, (chemical composition) light gray, middle strong and strong. The capacity is from 0.4 to 2.8 m. Capping consists of soil-vegetable coating, clay and silica clay. The capacity from 0 to 6,7 m. The sort of received road metal has indexes of crushability from «200» to «600». The sandstone answer the requirements of GOST (State standard) 8267-82. Explored reserves volume On the site of 1221.2 thousand m2 the sandstone stocks are 1709.7 thousand m2, with similar capacity of rock 1.4 m. Approval by the territorial In case of area increase there is a possible growth of stocks up to 2 500 thousand m2, with similar capacity of rock 1.4 m. reserves committee

5. The building of the enterprise for extraction of painting sand for the mineral pigments manufacture

General information Item Description Site type Resource Purpose of the site use Extraction of painting sand, manufacture of mineral pigments for the further use in building and paint and varnish industry. End product Mineral pigments Deposit name Nizhny Abljazovskoe deposit of painting sands Natural resource Painting sands of saratovsky suite Site location Russian Federation, Penza region, Kuznezky district, the village of Nizhny Abljazovo Local site situation The site is to the South-West from the city of Kuznezk, in the the village of Nizhny Abljazovo Total plot area 45 000 m2 (4,5 hectare) Current type of site The state forest fund Buildings on site no Owner Municipal office of the Kuznezky district Type of law Municipal property Contact information Penza Region Development Corporation JSC Tel.: +7(8412) 68 08 37 e-mail: [email protected] web-site: www. krpo.ru Favorable conditions for Constant growth of the demand for brick from the Penza region investment project building companies and the companies of the nearest regions and realization districts; Closely located to primary product and federal highlight; Human resources; Labor costs minimization possibility; Support for the project from the Penza Region Government.

Transport infrastructure Item Description Motor transport Nearest federal highway – М5 (Ural: Moscow – Chelyabinsk), 31 communication km from the site. Access roads: dirt road; there are asphalt road in 3 km from the site. Nearest major cities Penza – 120 km, Moscow – 757 km, Samara – 299 km, Saratov – 220 km, Nizhniy Novgorod – 554 km. Railway communication The Kuybyshevskaya Federal Railway 31 km from the site, nearest station «Kuznezk» railway station 31 km from the site. No branch line on site. Air communication Nearest airport - the city of Penza, 150 km away from the site. Water communication Nearest river port – the city of Syzran, 150 km away from the site. Security measures No fence, technical security system or video monitoring. Nearest fire station and police station – 6 km away from the site. 9

Civil engineering infrastructure Electricity supply A 10 KWt high voltage power line is 400 m away from the site. Gas supply A 159 mm 1.2 MPa gas pipeline is 2 km away from the site. Water supply There is no water supply on the site. No boreholes on site. Sewerage No sewerage system in the immediate surroundings. Heat supply No heat supply network nearby. No on-site heat sources. Communications GSM 900/1800 mobile communication available; operators: Beeline, Megafon, SMARTS GSM. Wire telephone communication (Open Joint Stock Company "Volgatelekom").

Deposit data Item Description Deposit name Nizhny Abljazovskoe deposit of painting sands Minable natural resources Painting sands of saratovsky suite Resource properties The chemical composition of sand could be characterized by the (chemical composition) following basic components: SiO2 – 89,34-95,48%; Al2O3 – 2,45-5,06; Fe2O3 – 0,40-4,72; TiO2 – 0,28-0,34; CaO – 0,6-1,40; MgO – 0,18-0,32; H2O – 0,11-0,39; others – 0,32-1,10. Fine-grained sands ( fraction of 0,05-0,25 mm prevails), the maintenance of clay particles fluctuates from 1 to 14 %, dust particles – to 2 %. There are 97 kg/m3 pigments in sand. Explored reserves volume Deposit stocks are confirmed on categories А+В in 82 thousand tonnes. Additional information Average extent of sand deposits fluctuates from 120-140 m, width – 70-90 m. Capacity of strata change from 1 to 7 m, 3-4 m upon average. There is up to 22 % of ferrum oxide after concentration by color fraction separation. Concentrated pigment is suitable for production of clay - lime facade glue paints mainly beige - pink, oil reddish-brown paints, and also for manufacture of colored sheetrock. The reaction for drawing out is neutral, tests on alkali resistance and light resistances are positive. Pigment roasting allows receiving shades from light-red to red-brown. Prospective annual 5 thousand tonnes per year consumption of stocks Prospective stock of More than 16 years resources at the set capacity