Aluminium Fluoride Overview of Demand in India

1. Aluminium Fluoride Overview of Demand in India 10th World Aluminum Raw Materials Summit 2019 May 17, 2019 Zhengzhou, China Akshay Malhotra Marketing Manager – Raw Materials TATA International +91-9833879880 akshay.malhotra@tatainternational.com

2. Company Profile Delivering value to customers and all stakeholders • Incorporated in 1962 • Currently headed by Mr. Noel N Tata- • Managing Director • Worldwide networkfor trading and distribution • PremierTrading arm of the Tata Group • 6500+ employees worldwide • Operates across 5 business verticals in Leather and Leather Products, Metals Trading, Minerals Trading, Distribution, Agri Trading • Drives customer focus and strategic partnerships Disclaimer: The opinions expressed in this presentation and on the following slides are solely those of the presenter and not necessarily those of Tata International. Tata International does not guarantee the accuracy or reliability of the information provided herein.

3. Products for Aluminium Industry (PAI) Portfolio Core Competence The ability to provide customized solutions in line with changing customer needs CATHODE/ ANODE BARS CALCINED PET. COKE/ GREEN PET. COKE ALUMINIUM FLUORIDE Value Added Solutions Manufacturing Marketing Technical Logistics Trade Finance BATH CRYOLITE COAL TAR PITCH

4. Aluminium Industry Landscape inIndia • Annual Global Consumption of 88 Million Tonnes (Including Scrap) • Per capita consumption in India is 2.5kg vs global average of 11kg Current Consumption • Growing at a CAGR of 10% and anticipated morethan 4X by 2030 with the Government’s visionary initiatives like Make in India, Smart Cities, indigenous space programmes, domestic defence sector revival will boost domestic manufacturing and value addition Future Demand • Improved captive alumina production and locally sourced bauxite are key to lower costs • LME price vs Average cost of production is a key indicator Growth Drivers • Vedanta, Nalco, and Hindalco are the key domestic players • Combined annual production capacity of 4.1 million tonnes Key Players

5. Risks associated with theIndustry Interim Relief by Supreme Court, limits import of pet coke Section 232 – Imposed by USA Oct 2018 April 2018 March 2018 BIS notification for imports of Caustic Soda • Volatility in LME prices • Fluctuations in foreign exchange rates • Fluctuation in global Aluminium production, operating vs cash profits • Slowdown in the global economy, trade sanctions • Growing competition from secondary producers in the domestic market for value added products • Increase in prices of inputs particularly Caustic Soda, C.P. Coke, C.T. Pitch, Aluminium Fluoride and auction coal

6. Key Indian Smelters Details Smelters • Vedanta has become the highest Aluminium producer in India in FY2019. Production Stood at 1,959,000 tonnes – 17% increase from 1,675,000 tonnes. Mostly driven by stabilized production increase after complete ramp up at Jharsuguda • Nalco produced 460,000 MT and Hindalco expected to produce 1.29 million tons

7. ALF3 Trade Flow intoIndia ` Fluorsid, Italy Several AlF3 producers, China JPMC, Jordan Mexichem, Mexico Gulf Fluor, UAE PT Petrokimia, Indonesia High Bulk Density Low Bulk Density India is one of the largest importers of AlF3 globally along with Russia (each at ~17%). Only 15-20% of India’s total AlF3 requirement is met through domestic supply

8. Imports vs Domestic DOMESTIC PRODUCERS IMPORTS • AlF3 sales patterns similar to prior years, continued strategy of reducing focus on AlF3 while maintaining long term customers • Focus on Specialty Grade HF And Specialty Fluorides. • Raw material sourcing (Silicic Acid) constraints eased • Adjacent Fertilizer Complex vs. • Other Expensive Sources • Installed capacity of 2560 tpy • Lesser market share compared to Tanfac and Alufluoride *Source: Export Import Data Bank H- High Bulk Density, L- Low Bulk Density

9. Industry Outlook:China Prices AluminiumFluoride Fluorspar and ATH Permetrictonneprice(inRMB) ATH FS AlF3 7000 6300 5600 4900 4200 3500 2800 2100 1400 700 0 4/1/2016 Permetrictonneprice(inRMB) 15000 14000 13000 12000 11000 10000 9000 8000 7000 6000 5000 4/1/2016 4/1/2017 4/1/2018 4/1/2019 4/1/2017 4/1/2018 4/1/2019 Source: Asian Metal • Surge in AlF3 levels in China during Oct-March ‘18 & ‘19 can be attributed to the winter cut policy • Price trend of Fluorspar primarily impacted by demand from Fluorochemical industry, followed by AlF3 • Chinese crackdown on polluting industries has had major impact globally –With smelting capacity shutdown; availability of Calcined Petroleum Coke (CPC) & Aluminium Fluoride (AlF3), strategic materials for Aluminium smelting, has also been severely impacted due to capacity closure in China • Decrease in aluminium supply from China has provided an upward impetus to LME index; uptrend likely to continue– • primary smelters trying to maximize production and restart shut down capacity • Energy cost reduction (~40% of production) is toppriority for smelters worldwide and most of R&D initiatives are centered around it

10. Fluorspar • Primarily used for HF Production, which is further used for making Fluor chemicals. • Classified as a critical raw material by Europe and USA • China has ~80% global fluorspar capacity. 19% of Global FS used for AlF3 • Integrated/ captive mines with AlF3 plants provide a major cost advantage • Cost Effective to ship 1 MT of AlF3 than 4.3 MT of raw materials (FS + ATH + SA) • Purchase mostly executed on long term contracts with producers vs. spot buy • FSA is a commercial alternative but is relatively flat as around 90% of AlF3still produced from Fluorspar (HBD) and balance 10% from FSA (LBD) • India has limited fluorite reserves in select states including Gujarat, Maharashtra,Rajasthan and Chattisgarh. These are not sufficient to cater to the AlF3producers, who eventually meet their requirements through imports

11. Way Forward • “Aluminium consumption may double to 7.2 million in 5 yrs”: Nalco. • AlF3 demand may increase to >100k MTPA in 5-7 yr. term to cater to increased consumption, assuming entire growth is fueled by domestic Al production • Enhance the Imports of high density AlF3 from key producers • in UAE & China through well established marketing channels • Swap agreements for key raw materials between domestic • ATH producers and foreign AlF3 producers • “Alufluoride Ltd signs MoU with JPMC, Jordan for production and marketing of Aluminium Fluoride – 9 Feb, 2019.” • Expansion of existing domestic capacity for low bulk density AlF3 • Index linked pricing to curb volatility & fluctuations arising out of government policies and unanticipated market events

12. Xie Xie Dhanyawad Thank you Akshay Malhotra Marketing Manager