PROFILE HISTORY OF FOSKOR ZIRCONIA The Foskor Zirconia plant was commissioned in 1991 and produces Monoclinic and Calcia Stabilised Zirconia with Fumed Silica as a by-product. Customers use our products in a variety of applications including ceramic colours, abrasives, chemicals and refractory products for the glass and steel industries. In 2008, Cumi has taken a 51% operating shareholding in Foskor Zirconia (Pty) Ltd. The intent of this shareholding is to build Foskor Zirconia into a leading supplier of Fused Zirconia products in the world market. Carborandum Universal Ltd (CUMI) is one of the first manufacturing companies of the Murrugappa Group. It has been a pioneer in abrasives, ceramics and electro-fused minerals with additional interests in ceramic fibres and super abrasives through its associate companies. Over the last four decades, CUMI has enjoyed a premier position in the Indian market and has established its presence in the international markets. In 2010, Foskor Zirconia embarked on an 85 million rand project to install a tilting furnace which will be completed by March 2012. This will add an additional capacity of 6000mt p.a. to Foskor Zirconia’s current product range. Foskor Zirconia has been in existence for 21 years and a supplier to the 10 largest Refractory companies in the world. Many of its customers have been with Foskor Zirconia in excess of 14 years. PROJECT BOSELE Foskor Zirconia (PTY) Limited's Board has approved expansion plans estimated at Rand 85 million to build a new plant. This capex project has been named Project Bosele (meaning "dawn") and will help meet increasing customer demands. THE NEW PLANT’S INFRASTRUCTURE WILL ADD A 6400 kVA tilting electric Arc furnace; A Batching and Feeding system, A Materials Handing system; A Compressed Air plant and Cooling Water system and its electrical infrastructure This capital expenditure allows Foskor Zirconia to diversify its product range from existing Calcia Stabilized and Monoclinic Zirconia products to include Monoclinic Bubble Zirconia products. Construction of the new plant has commenced in February 2011 and is due for completion 31 March 2012. This expansion is estimated to double the current production capacity of 5500 metric tons to 11500 metric tons per annum. MARKET DEMAND / TARGETED MARKET The demand for Monoclinic Zirconia is increasing due to diminishing reserves of natural baddeleyite. INDUSTRY APPLICATION: Refractories Speciality Chemicals Pigmentation Ceramics in construction and industrial applications Glass Industry Nuclear power – Manufacturing of Zirconium Sponge Ceramic Brake Linings Catalytic converters – New cars Fuel Cell Technology – Renewable energy