Deep  Sea  Resources    The  Next  Fron4er      

21-­‐22nd  November  2013  

Conversion  of  Black  Sea  Sapropelic  Mud  to  Organic  and  Inorganic  Products  

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Contents  

1. Occurrence of Sapropelic Mud in the Black Sea

2.  Extracting and Processing “Sapropelic Mud”: Applying Marexin

Proprietary Technologies

3. Economic, Social and Environmental Effects

1. Occurrence of Sapropelic Mud in the Black Sea

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Sapropelic  Mud  is  distributed  across  the  seabed  surface  of  the  Black  Sea  

* AAPG European Region Annual Conference, October 17-19, 2010 Kiev, Ukraine Shnyukov et.al; The Black Sea Sapropel and Sapropelic Sediments as a raw material for production of new types of complex fertilisers

Surface Area 436,402 km2 168500 miles2

Average Depth 1,253 m 4,111 ft

Max Depth 2,212 m 7,257 ft

Water Volume 547,000 km3 131,200 miles3

Sapropel Resource*

3.2 x 1011 m3 11.3 x 1012 ft3

The world’s largest permanently anoxic basin.

248 years extraction at 8 MM tonnes/year flowrate project.

Black Sea

Romania

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Sapropel  accumula?on  in  Black  Sea  was  caused  by  a  developing  anoxic  environment    

1.  Saline waters of the Mediterranean Sea rose and entered the fresh waters of the Black Sea 7,500 years ago

2.  Salinity difference prevented mixing of the water column

3.  High salinity deeper waters became anoxic causing a major crash of the entire deep ecosystem killing all oxygen-dependent life forms

4.  Organic matter of the dead sea creatures did not decompose in the anoxic conditions and accumulated in the sea floor mud

Mediterranean Sea

Black Sea

Approx 88% of Black Sea waters are Anoxic

Bosphorus Straight

Anoxic, high salinity region

Oxygenated, low salinity region

Remains of marine life accumulate on the seabed as

sapropelic mud

Transition region

Sapropelic  Mud  is  composed  of  layers  enabling  our  unique  product  mix  

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Natural Resource TOC , %wt

Sapropelic mud 7 ~ 15

c.f. Fossil Source Rocks e.g. Domanik Shales * 2 ~ 3

Exploration Results

Sub Bottom Profiling 1,300 km

808 miles

High Resolution Bathymetric Surveillance

1,000 km

621 miles

Core Samples Collected and Analysed 165 -

* Volga Ural Basin, Europe

•  Top layer: Coccolith is a layer of high concentration calcium carbonate

•  Middle layer: Sapropel has organic content, derived from dead marine creatures in conjunction with nano sized mineral deposition.

•  Bottom layer: Mineral Muds is a layer of inorganic materials

2. Extracting and Processing “Sapropelic Mud”: Applying Marexin Proprietary Technologies

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Proprietary  Marexin  processing  using  proven  technologies  

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Organic  Processing  

• Gasifica?on  Gasify  organic  material  to  produce  syngas  

• Syngas  Conversion  of  syngas  to  higher  value  organics

Inorganic  Processing  

• Minerals  Various  mature  alloys  and  slag  processing  technology  employed

CO2  Capture  and  U?liza?on  

• Carbon  dioxide  captured  from  the  organic  and  inorganic  processes  reprocessed  to  produce  valuable  organic  compounds  or  biofuels.  

• From  the  seabed  at  around  2000m  below  sea  level  

• Using  a  subsea  mining  tool  and  riser  to  bring  the  resource  to  the  sea  surface  

Extrac?on   Offshore  Processing  • Dewatering  via  chemical  and  physical  processes    • Return  of  excess  marine  water  to  the  seabed  

Logis?cs  

• Barges  transport  dewatered  resource  to  an  onshore  processing  facility      

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Proprietary  Marexin    technology  for  deep  sea  mining  

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Proprietary  Marexin    technology  for  deep  sea  mining  

Vertical Transportation System Subsea mining tool Offshore Processing Vessel

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Sapropelic  Mud  

Organic content

Both  organic  and  inorganic  components    are  processed  in  one  single  system  

Electric  Arc  Furnace  

Inorganic content

Syngas

Mineral rich slag

Ini?al  Products  

Ethanol

Metallurgical Products

Final  Products  

Biochemical process

Proven processes

Single feed

Construction Materials

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Product  mix  for  indica?ve  annual  extrac?on    rate  of  8  MM  tonnes  of  Sapropelic  Mud  

In  tonne/year  

176

536 616 712

4,056

21,450

160,000

400,000

800,000

1,500,000

1,900,000

2,800,000 Ethanol 1,000 Fuel

Cement 60 Construction

Precipitated Calcium Carbonate 180 Paper , Construction

FeSi Alloys 1,120 Steel

Aluminium 1,810 Transportation, Construction

Magnesium 2,250 Automotive

Titanium 25,000 Aerospace

Manganese 2,500 Steel

Vanadium 23,260 Steel

Nickel 16,460 Steel

Chromium 3,870 Steel

Cobalt 25,050 Superalloys

Product  Average  Price  EUR/tonne  

Industrial  Applica?on  

3. Economic, Social and Environmental Effects

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20,0%  

25,0%  

30,0%  

35,0%  

40,0%  

45,0%  

0   500   1000   1500   2000   2500  

IRR  

Sapropel  Flowrate  [tone/h]  

• Substantial impact on communities and markets in the region

• Increase competition in each of the product areas

• Significant positive boost to Romania’s GDP

• Boost the strategic importance of the region

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A mega project with significant economic benefits

Key Financials (For 8 MM tonnes/year) IRR > 40%

NPV > € 20Bn

CAPEX ~ € 5.7Bn

OPEX ~ € 1.1Bn

INVESTMENT  AND  IMPROVEMENT  IN  INFRASTRUCTURE  

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Numerous new jobs and improvements to national infrastructure would be achieved

* Around 6000 FTEs will be required directly. **Another 60,000 FTEs will be required in the supporting industries such as infrastructure, construction, transportation etc.

Key Features (For 8 MM tonnes/year)

New Direct Jobs* ~ 6,000 FTEs

New Indirect Jobs** ~ 60,000 FTEs

TOTAL JOBS ~ 66,000 FTEs

•  Maritime facilities in Romania will receive 6 - 10 MM tonnes of Sapropelic mud p.a.

•  Products from the onshore facility will be transported by road, rail and maritime vessels

•  Turnover of Project will be equivalent to 5% GDP in Romania

Black Sea

Romania

Discharge water from the extraction process will be returned to the anoxic zone where the hydrogen sulfide levels will rapidly deplete any entrained oxygen

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Marexin proprietary engineering design will minimize environmental impact offshore

Conformity to Present and Foreseeable EU, Romanian, Black Sea & IMO Regulations for Discharges

Recovered marine methane will be utilised to power the ship’s operations

Sea surface Oxygenated waters

Disturbance to the marine habitat will be minimised and temporary through design of the subsea vehicle

Monitoring biological activity of the seabed environment, before, during, and after the exploitation

Anoxic waters

Oxygenated/Anoxic water interface

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…onshore Marexin will convert waste streams to products

Conformity to Present and Foreseeable EU,

Romanian, Black Sea & IMO Regulations for Discharges & solid

wastes

REDUCE

REUSE

RECYCLE

Carbon dioxide waste streams will be processed to produce carbon monoxide and hydrogen, then converted to ethanol

The developed processing chain and natural structure of the sapropelic mud is allowing the conversion of the solid wastes to cement and fertilisers.

Water treatment units will assure the treatment of the industrial waters to minimise the compliant discharging into the Black Sea .

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Unique Opportunity

Sapropelic Mud

Project

Environmentally Responsible

Applies Proven Technologies

Significant Economic and Social Benefits for the region

Deep  Sea  Resources  The  Next  Fron4er  

   

21-­‐22nd  November  2013  

Conversion  of  Black  Sea  Sapropelic  Mud  to  Organic  and  Inorganic  Products  

Dinu Patriciu Chairman of DP Holding SA e-mail: dpatriciu@dpholding.ch Melanie Chen COO of Marexin BV e-mail: mchen@dpholding.ch Razvan Popescu Managing Director of Marexin BV e-mail: rpopescu@dpholding.ch