Policy statement regarding minerals mined in CAHRA

GRIEVANCE MECHANISM

DUE DILIGENCE REPORT

Joint-stock company of an open type "Kirovgrad hard alloys plant" (KZTS) is a largest russian enterprise producing best in country hard metal production. Founded in a 1942 on basis of the evacuated Moscow combine of rigid alloys, KZTS now is a modern highly effective enterprise equipped with the advanced equipment and advanced technologies. At the enterprise works about 2000 persons.

Hard metals depending on a structure and chemical structure have a number of unique properties, that allows effectively to use them in various areas of an industry. Hard metals alongside with high hardness and increased resistance to abrasive attrition wear are characterized high strengthening. The range of hard metal production made by JSC "KZTS" is rather extensive: powders of tungsten, carbides of tungsten, tantalum; tungsten anhydride, paratungsten of ammonium, and, above all is about 6000 types of hard metal production, which covers practically all areas of application of rigid alloys:

• Processing metals, not metal materials and hard-to-treat materials by cutting;
• Drilling mountain breeds;
• Processing of metals by pressure and punching without shaving;
• Synthesis of diamonds.

Nowadays our plant is the manufacturer of the effective marks of rigid alloys and progressive forms of hard metals has won wide recognizing of the consumers of rigid alloys in all branches. The today's success of the plant is explained on the one hand to that we work in a close contact with many mining, metallurgical and machine-building enterprises. The geography of our deliveries is very wide. Production with the mark "KZTS" known in Siberia and Byelorussia, on Ukraine and on Ural, in Central areas of Russia and on Far East, in distant and near foreign countries. We are always ready for fruitful cooperation to each new partner.

On the other hand success of the enterprise is explained by effective methods of production, high qualification of the employees stable financial position, low price level. Developing success, we work on the future: we create new technologies, we acquire the most progressive engineering, carying out experimental-research work and we start in production for the newest kinds of production.