Recycling Metals Conference Indy June 2019

Heritage Profile

The Heritage Group’s History

The Heritage Group has been building lasting relationships with its partners for over 80 years.

Fortune 500 customers

Employees

Total Revenue

Generations of family management

250+

7,000+

$8 Billion

4

The Heritage Group comprises a portfolio of companies and is owned and led by the Fehsenfeld family

Recent Metal Recovery Developments at Heritage

Nigel Morrison President

PIZO Technologies

nigel.morrison@heritage-enviro.com

Recycling Metals from Industrial Waste

A Short Course and Workshop

With Emphasis on Plant Practice

June 24-26 , 2008

Sponsored by the Colorado School of Mines

Office of Continuing Education

PIZO Operating Company LLC

• Heritage/Nucor Owned Company

• Operated by Heritage

• 50,000 ton/year EAFD supply

• Joint supply

Nucor Yamato & Hickman

• Capex $29MM

• Production Q1 2009

FACILITY VIEW FROM SOUTH

PIZO Facility

• 40 acre site in Blytheville Arkansas

• 2 x 100 ton Ajax Tocco Channel Induction Furnaces

• 1 Komarek briquette press

• 43 Employees

• PIZO Iron 32,000 ton/yr

• Crude Zinc Oxide 14,000 ton/yr

• Slag 16,000 ton/yr

Coke EAFD

BF

F #1 F #2

P

I

G

C

A

S

T

EAFD

B

I

N

D

E

R

Briquetter

Briquettes

Iron Borings

Additives

FeFe

Slag

Slag

Storage

Pig

Pig

Storage

PigPig

Pig

PigPig

PZO

Baghouse

Z

n

PIZO Fume

Pouring Iron Pigs

Pig Iron Price Chart

0

100

200

300

400

500

600

1/6

/1998

1/6

/1999

1/6

/2000

1/6

/2001

1/6

/2002

1/6

/2003

1/6

/2004

1/6

/2005

1/6

/2006

1/6

/2007

1/6

/2008

USD $

•Courtesy of Ryans Notes

Zinc Nacional

Zinc Nacional ProfileZinc Nacional is one of 10 entities owned by the Alverde family’s 4th generation family diversified holding

company, Grupo Promax. Based in Monterrey, Mexico with focus in production and commercialization of

gypsum products, wall plaster, drywall, zinc derivatives and recycled paperboard.

Overview:• Founded in 1917

• Based in Monterrey, Mexico with 3,000+ employees

• The largest manufacturer of wall plaster and industrial and ceramic gypsum in Mexico

• The largest manufacturer of Zinc Oxide and Zinc Sulfate in Latin America

• The largest producer of gypsum drywall in Latin America

• The largest supplier of light-weight construction systems in Mexico

• Products sold in over 25 counties across the globe

• Own and operate Waelz kilns with 700k tons of total annual capacity in the U.S., Mexico, Turkey and South Korea

• Location: Monterrey, Mexico

• Main Products: Zinc Oxide, Zinc Sulfate and recycled Paperboard• 6 waelz kilns

• Location: Millport, Alabama

• Main Products: Waelz Zinc Oxide, Iron Concentrate• Acquired in 2009

• Location: Aliaga, Izmir, Turkey

• Main Products: Waelz Zinc Oxide, Iron Concentrate• Joint venture started in 2014 between ZN and Cinkom• Started operations in February 2017

• Location: Suncheon, South Korea• Main Products: Waelz Zinc Oxide, Iron Concentrate• Started operations in June 2017

Zinc Nacional Waelz KilnsZN, SDR, TURKMEX, and GSDK represent Grupo PROMAX’s proven waelz kiln technology for

processing metallurgical feedstocks across the globe.

Waelz Sustainable Products LLC

Metallurgical Feedstock from Steel Mini Mills

Waelz kilns process a metallurgical feedstock that is a byproduct of steel mills, to create Zinc Oxide – a

widely used additive in numerous products such as rubber, plastics, ceramics, glass, cement, lubricants,

paints, sunscreen lotion, adhesives, sealants, pigments, micronutrients, batteries, and more.

SCRAP STEEL

ELECTRIC ARC

FURNACE

BAGHOUSE

COLLECTIONMETALLURGICAL

FEEDSTOCK

Metallurgical Feedstock Collection: Electric Arc

Furnaces like Nucor Steel or Steel Dynamics, typically referred to as “mini mills”, melt a blend of scrap metal, including a large

amount of galvanized scrap metal which contains zinc. In the melt stage, zinc is evaporated and trapped in the air handling

(baghouses) of mills.

Fe Pb

Cd

Zn

K Cl

Ca Na

EAF PELLETSWAELZ KILN PROCESS

Crude Zinc

Oxide(CZO)

COKE / WASTE

REDUCING AGENTS

35%

CZO

WaelzIron

Product

(WIP)

PR

OD

UC

TS

Waelz Kiln Technology

The Waelz Process

The Waelz process is a method of recovering zinc and other relatively low boiling point metals from

metallurgical feedstocks, mined ores and other recycled materials using a rotary kiln (waelz kiln).

AIR

OXYGEN ( O2 )

900°C -

1300°C

1000°C 1150 °C 500°C - 900°C 20°C –

150°C

C + 1/2 O2 CO

Fe2O3 + CO 2FeO + CO2FeO + CO Fe + CO2ZnO + CO Zn ° + CO2

ZnO

ZINC OXIDE WAELZ KILN PROCESS

Fe

Zn ° + ½ O2 ZnOZnO

ZnO

ZnOZnO

ZnO

GAS

H2O

150°C -

500°C

Iron Concentrate

CO2CO

CO

COCO

CO2

CO2

CO2

Metallurgical Feed & Coke

Water Evaporation

Coke Combustion (throughout

the kiln)

FeO reacts ZnO reacts

ZnO Production (Gaseous)

Discharge Iron

Concentrate

65% Iron

concentrate35% Waelz

Zinc

Oxide

Feed Pellets

Coke

Waelz Kiln Flow

Other Waelz Plant Images for Reference

Waelz Kiln Plant in

Monterrey, Mexico

Waelz Kiln Plant in

Aliaga, Turkey

Plant Specifics: Waelz PlantKey Assumptions:• Plant Capacity

• Phase 1: (1st Kiln) 120,000 tons/year

• Phase 2: (2nd Kiln) 240,000 tons/year

• Finished Products: Zinc Oxide &

Iron Concentrate

• Required Utilities:

• Electric Power 3MW

• Natural Gas 70 MMBTU/hr.

• Water 6,000 gallons per day

• Railroad Spur

• Connection to major highways

• Heavy Industry zoning

Millport, AL

Location and EAFD Supply

22

• Our plant will be well positioned in Muncie, IN to serve a

large portion of steel producers throughout the Midwest

offering them a competitive logistics advantage.

• HES and ZN have EAFD data on 90+ mini mills, of which

nine are based in Indiana; HES and ZN have

relationships with many of the mini mill owners and

operators.

• Capacity

–Phase I: 130k tons/yr Q4 2020

–Phase II: 260k tons/yr soon after.

WSP is ideally situated to collect and process EAFD. We are excited to bring additional processing

capacity to EAFD generators. Our planning is measured, with room for expansion when needed.

10

US EAFD Volumes To Off-Site Facilities 2017

Approx. 1 MM tons EAFD managed

in the United States

USA EAFD Processing Capacity

YEAR 2006 2007 2008 2009 2010

EAFD Generation 988K 1013K 1038K 1063K 1088K

Horsehead

Capacity

538K 538K 618K 668K 778K

SDR Capacity 50K 120K 120K

PIZO Capacity 50K 100K

Zincox Capacity 100K 200K

Other Capacity 150K 150K 150K 150K 150K

TOTAL

PROCESSING CAPACITY

688K 668K 818K 1088K 1348K

Planned New Steelmaking Capacity300,000 Tons/Year additional EAFD by 2022

• Nucor 61,000

• SDI 58,000

• JSW 42,000

• Big River 54,000

• USS 27,000

• North Star BlueScope 38,000

• Others 20,000

25

US EAF Dust Generation vs Recycling Capacity

26

WSP brings much needed processing capacity to the market as U.S. EAFD generation is

projected to grow nearly 20% in the next four years.

0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000

EAF Generation Waelz Kiln Capacity

2022

2018

WSP WSP

Phase II

WSP

Phase I

Current

EAF DUST FROM

EXPANSIONS

Timing

Project Alacran

• JV between HES and ZN agreed 2017-2018

• Press Release August 2018 announcing the project

• 3 potential sites from 80 in 4 states chosen

• Muncie IN site chosen January 2019

• Public Meeting in Muncie and Press Release January 2019

• Land purchased February 2019

• Engineering firm selected February 2019

• Air Permit application filed April 2019

28

Project Timing

Year 1: 2018 Year 2: 2019 Year 3: 2020

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr

Site Selection

Permits

Engineering

Equipment

Construction

Hiring

Commissioning & Start up