ANNUAL REPORT 2017 EN

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THE FUTURE IS IN BORON BORON IS IN ETI MADEN etimaden.gov.tr


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A nation’s advancement depends on utilizing and operating of underground resources.



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INTRODUCTION Mining is one of the sectors shaping the future of the economy, however, the most important issue is how to benefit from these resources. The mining sector basically supplies necessary raw materials to the industry and contributes to development of the regions with investments and business opportunities. Our ministry, in line with its vision of “a safe future in energies and natural resources”, intends to concentrate its activities in this direction with the aim of evaluating the underground resources in such manner to provide high added value to the country’s economy, and adopts a sustainable approach that is environmentally friendly and does not compromise occupational health and safety.

Fatih DÖNMEZ Minister of Energy and Natural Resources

Eti Maden, is a state-owned company, evaluates our boron mines, important wealth and constituting 73% of the existing reserves in the world with a sustainable management approach, contributes to the country’s economy. Eti Maden has become the leader of the global boron industry since 2005 by taking the principle of being a “Reliable and Sustainable Supplier” with its world boron reserves, investment potential, strong logistics and qualified personnel structure. It


Eti Maden, is a state-owned company, evaluates our boron mines, important wealth and constituting 73% of the existing reserves in the world with a sustainable management approach, contributes to the country’s economy.

continues its activities, aiming to continue its quality oriented production, sales and logistics activities, to improve its technological infrastructure, to increase product diversity by focusing on R&D activities for high technology products besides traditional boron products in order to sustain this position. We have begun a superior strategic structure by carefully taking the necessary steps on nationalization of the defense industry which is strategically important for our country, in order to expand and increase use of the boron products especially in the defense industry within our Ministry’s “National Energy and National Mine” policy. In this regard, the investment processes for production of strategical products, in particular boron carbide, which are important inputs for production of advanced technology products and which create great difference in terms of added value, have begun. Thus, a very critical threshold in terms of current conjuncture has been exceeded with current and ongoing studies. The national resources were benefitted as much as possible with the innovation works carried out by Eti Maden until today. Thus, dependency in imported products in main activities of the

company, such as production, investment and R & D has been reduced and Eti Maden contributed to national economy with significant savings on behalf our country. Eti Maden has broken a historical record in 2017, by generating $880 million in revenues for the sale of 2.2 million tons of boron products. Thus, it continued its leadership in the World Boron Sector with a 57% market share. I would like to thank the management of the company for making Eti Maden the leader in the world and all its employees who have played an effective role.


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MESSAGE OF THE GENERAL MANAGER As the World in Boron, we will design the future of boron in the world. Eti Maden, which is the headstone of Boron industry, aims to design the future of the world with more than 80 years of experience, innovative approach, and “Quality, Corporate Sustainability, Technology and Innovation” focused projects. We have continued to strengthen our position of World Boron Leader, which we have achieved in the year 2005, with record sales figures in 2017.

Serkan KELEŞER General Manager and CEO

2017 is a year in which we made breakthroughs about new markets and new products. Despite of slight growth compared to the last 2 years in the boron market. Our company has achieved a historical record of 2.2 million tons boron products sales and our world boron market share reached to 57%, the highest level in our history. In return, our company has gained 880 million US $ sales revenue including 880 million US $ from export. New Boron Products... Our company in which product portfolio exist all the boron products demanded by the world’s boron market, produces products with different spectrum values as well as product diversity.


Our organization, with the importance given to being “a Reliable and Sustainable Supplier”, presents its products to its customers in a timely, expected and needed quality with long term cooperation.

In 2017, zinc borate, having different areas with usage characteristics, production facility has been established and the number of products in our portfolio has reached to 17. As result of our R&D activities, Etifert for agricultural sector and three new types of Eti Matik for cleaning sector have been put on the market. Studies on Advanced Technology Products besides with the Traditional Boron Products In the light of our Ministry’s “National Energy and National Mineral” policy, we have begun to invest in the field of boron carbide, boron nitride and ferrobor production facilities, which are used in fields such as defense, electric-electronics, iron and steel, with the awareness of high value added high technology products in the development of the boron industry. The Most Important Factor of Success: Human Resource Behind the success of our organization, there exist qualified personnel with knowledge, experience and effort. We contribute to employment and development of the country by employing a total of 6,699 people in 2017. From the planning stage to the implementation, we operate in accordance with all necessary precautions and sensitivity to

be taken in occupational health and safety and environmental issues. We establish long-term cooperations with customerfocused approach. Our company which operates in line with customer satisfaction and quality-oriented production, marketing and logistics principles, gives importance to being “a Reliable and Sustainable Supplier” and with long term cooperation presents its products to its customers in a timely, expected and needed quality. The Future is in Boron, Boron is in Eti Maden... Our target is to sell 2.35 million tons of boron products in 2018 with a 59% market share in order to strengthen our position in the global market. We have got significant achievements in 2017, and we will continue to work intensively to achieve our goals in the upcoming period. In this context, I would like to thank being in the first place our Minister, our Ministry and all other shareholders who are the light in the vision and strategies put forward and new projects started and supported us, also all our employees for their efforts.


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TURKEY IS THE WORLD LEADER IN BORON 1935

ETİBANK

1998

ETİ HOLDİNG A.Ş.

2004

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FROM ETİBANK TO ETİ MADEN “Pioneer in the Mining Sector” “Our organization is the locomotive of our country’s mining industry with over 80 years of experience. Eti Maden, which gives direction to the sector in this process by gaining many businesses that are active today, continues this mission in a strong way. By the directive of Mustafa Kemal Atatürk’s far-sightedness that gives direction to the future, Etibank was founded in 1935 for the industrialization of Turkey, to carry out natural resources and financial organizations together. With the restructuring in 1998 it was named Eti Holding A.Ş. And with the restructuring in January 2004, it was named Eti Maden İşletmeleri Genel Müdürlüğü.

Within the framework of the relevant legislation, Eti Maden carries out the duty of producing, operating and marketing boron minerals of our country. Eti Maden, “The Leader of the World Boron ETİ MADEN İŞLETMELERİ Industry”, presenting the boron products GENEL MÜDÜRLÜĞÜ obtained from boron and boron products with global logistics operations to the national and international markets, contributes to the development of Turkey and world economy. Eti Maden, which designs the future of boron, continues its activities with the vision of quality, innovation and sustainability.



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ORGANIZATION CHART INSPECTION BOARD CONSULTANCY

DEPUTY GENERAL MANAGER

DEPUTY GENERAL MANAGER

HUMAN RESOURCES MANAGEMENT DEPARTMENT

SUPPORT SERVICES DEPARTMENT

PROCUREMENT DEPARTMENT

FINANCIAL AFFAIRS DEPARTMENT

MANAGEMENT INFORMATION SYSTEMS DEPARTMENT

STRATEGY DEVELOPMENT DEPARTMENT


BOARD OF DIRECTORS BUREAU OF THE BOARD OF DIRECTORS

GENERAL MANAGER PRIVATE SECRETARIAT OF THE GENERAL MANAGER HEAD OF INTERNAL AUDIT DEPT LEGAL CONSULTANCY DEPARTMENT

DEPUTY GENERAL MANAGER

PRODUCTION AND COORDINATION DEPARTMENT

FACILITY ENGINEERING SERVICES DEPARTMENT

TECHNOLOGY DEVELOPMENT DEPARTMENT

AFFILIATES

LOGISTICS DEPARTMENT

COMPANIES

Eti Soda A.Ş.

Bigadiç Boron Works

Etimine SA (Abroad)

Emet Boron Works

A.B Etiproducts OY (Abroad)

MARKETING AND SALES DEPARTMENT

DEPUTY GENERAL MANAGER

Bandırma Boron and Acid Works Kırka Boron Works

Beylikova Floride, Baride an Rare Soil Elements Bus. Works

OCCUPATIONAL HEALTH AND SAFETY UNIT


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MISSION To contribute to the national prosperity by evaluating all mining resources in our country, especially boron and rare earth elements, excluding coal and hydrocarbon resources, within the framework of sustainable development and by supporting our institutional knowledge with new technologies, to transform them into high added value products matching customer demand and expectations.


VISION To be a global organization oriented to the world market of boron chemicals, producing from boron and other underground resources new products, materials and articles that will create privileges and to be recognized as the leader of information and technology in the mining and chemical sector.


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OUR VALUES Eti Maden’s values on the main axis of sustainability: I N N OVAT I O N Make use of new ideas in order to create the future and ensure sustainable growth.

C O N T I N U O U S I M P ROV E M E N T Ensuring sustainability by continuously improving work efficiency and management systems.

RELIABILITY To be able to manage products, processes and systems under the time and conditions in the presence of customers.

EFFICIENCY To make processes independent of person, free from waste, measurable and controllable.

A DVA N C E D T E C H N O L O G Y To prepare sustainable technology strategies by developing long-term technological forecasts.


P OW E R O F C O M M U N I C AT I O N To convey knowledge and experience based on volunteerism and mutual understanding for accurate, reliable and realistic decisions in organizational and managerial activities.

C U S TO M E R O R I E N TAT I O N To provide the highest level of service to the right customer at the right time by making the right offer at the right price

C O L L A B O R AT I O N Sharing resources, cooperating and working together in order to achieve the common goal and reach the targets.

TEAM SPIRIT Having a business culture that activates the corporate synergy.

PA RT I C I PAT I O N To provide the voluntary support of all employees for participation in resolutions, problem solving, continuous improvement and customer satisfaction.

S E N S I V I T Y TO T H E E N V I RO N M E N T To perform activities using environmentally sensitive differentiation strategy.

SOCIAL RESPONSIBILITY To invest in social issues voluntarily in order to create high brand value and loyal customers.


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Within the framework of “New Vision in Boron” based on Quality, Sustainability and Innovation,

QUALITY

SU STAIN ABIL IT Y

• To be the best refined boron products producer of the world,

• To increase the search activities for natural resources,

• To ensure product and service quality above customer expectations,

• To carry out environment and human-friendly activities instead of “Production and Sales in spite of all”

• To bring customer satisfaction to the highest level, • To carry out timely and quality logistics activities, • To increase the efficiency of the organization by improving its organizational structure,

• To continue the increase in the market share, • To support the professional development and professionalization of our employees,

We continue our way by developing projects.

I NNO VAT I O N • To develop new production areas, • To increase product varieties, To continue R&D activities that will contribute to the production of the domestic industry, • To develop continuously strong technological infrastructure in accordance with the requirements of the era,


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MILESTONES Etibank was established with the directive of Gazi Mustafa Kemal Atatürk in order to operate and evaluate the underground resources of our country, to produce minerals, raw materials, energy and all kinds of banking treatments that our industry needs.

Balıkesir - Bandırma Borax Plant was established.

Balıkesir - Bigadiç Boron Plant was established.

1935

1964

1976

1958

Kütahya - Emet Colemanite Plant was established.

1970

Eskişehir - Kırka Borax Plant was established.

10% 40%


ETİ MADEN continues successfully to represent Turkey in national and international platforms. AB Etiproducts OY, a marketing company for Northern European market, was established in Finland.

1982

1979

Eti Holding A.Ş. was restructured and named ‘Eti Maden İşletmeleri Genel Müdürlüğü’ (Eti Maden businesses General directorate). Balıkesir Bigadiç Boron Works, Kütahya Emet Boron Works, Eskişehir Kırka Boron Works, Bursa Kestelek Boron Works

1998

2004-2018

40%

Bursa - Kestelek Colemanite plant Administration was established.

In 1998, Etibank was restructured and Eti Holding A.Ş. and its subsidiaries; Eti Bor A.Ş., Eti Alüminyum A.Ş., Eti Krom A.Ş., Eti Bakır A.Ş., Eti Gümüş A.Ş., Eti Elektrometalurji A.Ş., Eti Pazarlama ve Dış Ticaret A.Ş. were established.


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ETİ MADEN IN SUMMARY (2017)

2.2 Million Tons

%57 Market Share

The highest boron products sales of all times.

We have continued to strengthen our position of World Boron Leader, which we have achieved in the year 2005.

Despite the growth in the boron market compared to the last two years, our Organization has achieved a historic record as a result of effective marketing and quality activities. While the consumption of boron in the world increased by about 2% compared to the previous year, our sales volume increased by 24%.

New Company and Warehouses In the Far East, which has an important share in world boron production, we have expanded our logistics network by establishing logistics centers and new warehouse with “Eti Maden Asia Pacific” company based on Hong Kong in order to get position in the nearest location to our customers and to increase customer satisfaction.

17 Products With the Zinc Borate facility which started operating in 2017, our facility number has been 30 and the number of products in our portfolio has increased to 17.


TURKEY IS THE WORLD LEADER IN BORON


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BOARD OF DIRECTORS AND UPPER MANAGEMENT He was born in Istanbul in 1972 and graduated from Istanbul Technical University (ITU) Mechanical Engineering Department in 1994. In 2001, he received the title of Master Engineer in Istanbul Technical University (ITU) Institute of Science and Engineering, Department of Mechanical Engineering. He continues his Ph. D. in Yıldız Technical University (ITU) Institute of Science, Department of Mechanical Engineering. He has received vocational and managerial training in many countries such as England, Germany, France, Scotland, Canada, America. His articles have been published at national and international conferences. Between 1996 - 2008, he began working as a project engineer in İGDAŞ, a subsidiary company of Istanbul Metropolitan Municipality, and he worked as a manager in various units in long term.

Serkan KELEŞER Genaral Manager and CEO

Between 2008-2016, he was appointed to UGETAM AŞ, a subsidiary company of Istanbul Metropolitan Municipality, as General Manager and Board Member. Serkan KELEŞER was appointed as consultant to the Ministry of Energy and Natural Resources on 10.03.2017. Serkan KELEŞER, who was appointed as the General Manager and Chairman of the Board of Directors on proxy, of Eti Maden Businesses,, on 14.03.2017 by the approval of the Ministry of Energy and Natural Resources and as the General Manager and Chairman of the Board of Directors on 14.12.2017, is married, has two girls and two boys and speaks English.


He was born in Gumushane in 1973. In 1998, he graduated from Boğaziçi University, Political Science and International Relations and Business Administration Department with “Honor” degree by completing “Double Major” program. He completed his graduate study in the “International Business (MBA)” department of Munich University in Germany in 2003. After he worked in Germany between the years 2001-2004 as “Financial Control Specialist” in Siemens AG Financial Control Department, he worked in a Turkish-German infrastructure company generally operating in Turkey as “Business Development and External Relations Director”. He worked as the “Head Project Director” in charge of coordination and follow-up of all energy projects within the Prime Ministry Investment Support and Promotion Agency between 2007-2010. In the years 2010-2016 he worked as the “Head of the Board of Directors” in Türkiye Petrolleri Petrol Dağıtım A.Ş, as “General Manager” in Turkish Petroleum International Company (TPIC), as “Board Member” in TPIC, and as “Chairman of the Board” in TPIC. Between the years 2015-2017 year, he worked as the “Chairman of the Board of Directors” in Turkey - Brazil Business Council under Foreign Economic Relations Board (DEIK), which represents our country in the international business arena, while he, at the same time, worked as “Assistant Chairman of the Management Board” in Turkey - Colombia Business Council and the “Member of the Board” in Turkey - Iraq Business Council. Mithat CANSIZ, who was appointed as the “Ministry Consultant” in the Ministry of Energy and Natural Resources (MENR) in December 2016, has begun working as the “General Manager” in Mining Works General Directorate (MIGEM) in January 2017. In March 2018, the Ministry of Culture and Tourism (MEGEM) appointed him as the “the Vice Undersecretary”. At the same time, he worked as the Member of the Board of Directors in General Directorate of Eti Maden and as the Chairman of Reserve and Resources Reporting Commission (NMA). On 23/07/2018, Mithat CANSIZ, who was appointed as the Deputy Minister of the Ministry of Energy and Natural Resources with the Presidential decree numbered 2018/36, is married, has a child, and is fluent in English, German, Spanish and Arabic.

Mithat CANSIZ Member of the Executive Board


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He was born in 1974 in Konya. In 1994, he graduated from Yildiz Technical University, Faculty of Mechanical Engineering. In 2009, he worked as a Master in Business Administration Department of Balıkesir University Social Sciences Institute. He performed military service between 30.11.1995 - 31.03.1997. He worked as insured in Ankara Anonim Türk Sigorta Şirketi between 02.06.1997 - 06.11.1998.

Özgür SAÇ Deputy General Manager and Member of the Executive Board

Between 12.11.1998 - 28.01.2004, he worked as an engineer in Eti Bor A.Ş. Bandırma Boron and Acid Plants Operation Management. Between 28.01.2004 - 01.08.2012, he worked as Engineer, Technical Chief, Chief Engineer, and as Deputy Chief Engineer and Manager of Operations at Eti Maden Businesses Bandırma Boron and Acid Plants Operation Management between 14.09.2012 - 24.05.2013. On 07.06.2013, he was appointed as the Deputy Manager of the Operations Manager and started his duties as the Manager of Operations as of 08.04.2014. On 31.05.2017, he was appointed as the manager of Bandırma Boron and Acid Plants Operations Manager and as deputy general manager of Eti Maden Businesses since 01.06.2017. Özgür Saç, who was appointed as the Assistant General Manager and Member of the Board of Directors on 07.11.2017, is married and has two children.


He was born in 1973 in Kahramanmaras, Elbistan. In 1996, he graduated from Gazi University, Faculty of Economics and Administrative Sciences, Department of Public Administration. In 1999, he worked as a Master of Political Science and Social Sciences in Gazi University Social Sciences Institute and a Ph.D. in Political Science at Ankara University Social Sciences Institute in 2008. He began his career as an officer on 08.10.1998 in the Ministry of Finance General Directorate of Budget and Fiscal Control. He worked as State Accounting Expert Assistant/State Accounting Expert in the General Directorate of Public Accounts of the Ministry of Finance between 15.05.2003 and 01.07.2005. He performed military service between 30.11.2005 - 31.01.2006. On 01.02.2006, he began to work as a State Accounting Expert in the General Directorate of Public Accounts in the Ministry of Finance. Between 09.10.2009 and 30.09.2015, he served as Head of Unit and Expert in Dicle Development Agency covering Mardin, Batman, Siirt and Şırnak provinces in charge of administrative and financial works. He worked as an Expert again on 30.09.2015 - 20.01.2017 in the General Directorate of Public Accounts in the Ministry of Finance. On 23.01.2017, he served as the Head of Financial Affairs Department in Eti Maden Businsses General Directorate. Since 01.06.2017, he was appointed as the Deputy General Manager of Eti Maden Businesses as proxy. Tabip Gülbay, who was appointed as the Assistant General Manager and Member of the Board of Directors on 07.11.2017, is married and father of two children.

Dr. Tabip GÜLBAY Deputy General Manager and Member of the Executive Board


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He was born in 1967 in Sivas. In 1990, he graduated from the Department of Geological Engineering, Faculty of Engineering, Cumhuriyet University. He worked as insured between 21.10.1989 - 15.03.1991. He performed his military service between 30.11.1991 - 31.01.1991. He worked as insured between 01.06.1995 - 26.05.1997. He worked as an Engineer in the Directorate of Etibank ŞarkFerrokrom Müessesesi between 26.05.1997 - 21.08.1998, as Engineer in Eti Pazarlama ve Dis Ticaret AS between 21.08.1998 16.07.2001, as engineer in Eti Holding A.Ş. between 16.07.2001 - 21.01.2004 and as an Engineer in the General Directorate of Eti Maden İşletmeleri between 21.01.2004 - 09.11.2012.

Abdurrahman ÇELİKER Deputy General Manager

He worked as the Chief Engineer in the General Directorate of Eti Maden Businesses between 09.11.2012 - 07.03.2013, Chief Engineer between 07.03.2013 - 03.01.2014 and Chief of Unit between 03.01.2014 - 18.06.2015. Abdurrahman Çeliker, who has been appointed as the Chairman of Management Information Systems Department in Eti Maden Businesses General Directorate on 18.06.2015 and Deputy General Manager of Eti Maden Businesses on 31.07.2017 as deputy and on 28.02.2018 as principal, is married and has four children.


He was born in Brussels in 1983. In 2004, he graduated from Victor Horta Faculty of Architecture, Best Brussels ULB University. In 2007, he completed his master’s degree in the same university. Between 2012 and 2013, he worked as the General Coordinator in Seka Paper Museum and Science Center and the Branch Manager of Museums and Libraries in Kocaeli Metropolitan Municipality. Between the years 2013 - 2016, he worked as Advisor and Consultant in General Secretariat of the Turkish Grand National Assembly and the Ministry of Environment and Urbanism. Since 2016, he served as the Manager of Personal Secretariat and the Minister’s Advisor in the Ministry of Energy and Natural Resources. Abdülaziz Ünal, who is currently a member of Botaş International (BIL) Board of Directors, has been appointed as the Deputy General Manager of Eti Maden Businesses since 29.09.2017 and is married and has a child.

Abdülaziz ÜNAL Deputy Asistant General Manager


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AFFILIATES ETİ SODA A.Ş. The company, where our share is 26%, is producing sodium bicarbonate. Turkey is the second in the world in trona mine reserves. Beypazarı trona deposit with 219 million tons of reserves is operated with solution mining. Facilities that produce natural soda from Trona mine were completed and put into operation in 2009. The plant has reached 1.5 million tons of soda ash and 200 thousand tons of sodium bicarbonate production capacity by 2017.

1.5

Million Tons

of Soda Ash

200

Thousand Tons of Sodium Bicarbonate


OVERSEAS SUBSIDIARIES AB ETİPRODUCTS OY ETİMINE SA

SHANGHAI ETİMADEN

17 WAREHOUSE IN EUROPE

ETİPRODUCTS LTD

ETİMINE USA WILMINGTON

TURKEY

SAVANNAH

HOUSTON

3 WAREHOUSES IN CHINA TIANJIN QINGDAO SHANGHAI

HEADQUARTER

ETİMADEN ASIA PACIFIC

30 FACTORIES 4 MINES

GLOBAL FOOTPRINT

DURBAN

SUBSIDIARY

HEADQUARTER

FACTORY

BORON MINE

WAREHOUSE


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SUCCESSES AND AWARDS According to the “First 1000 Exporters Companies 2017” research prepared by Turkey Exporters Assembly (TIM), our establishment is the 15th in total exports; the fourth in the order of profitability; and the first in Mining Products Sector.

At the “Performance and Achievement Awards 2017” ceremony organized by the Ministry of Energy and Natural Resources, we were awarded a prize for our outstanding performance as Eti Maden İşletmeleri Genel Müdürlüğü.


WORLD

BORON LEADER In the award ceremony of “Ankara’nın En’leri” arranged by Ankara Chamber of Commerce, the Eti Maden İşletmeleri Genel Müdürlüğü was given awards in the category of “Tops” of Exports.

On the list of “ISO 500, Top 500 Great Industry Institutions” published by Istanbul Chamber of Industry, our establishment has become the 32nd in the Public - Private sector general rating, and the 3rd in the rankings of Public Sector.


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BORON SECTOR 2017 In 2017, world boron consumption has become 3.865 million tons by increasing about 2% compared to the previous year.

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The general growth in the world economy in boron sector was reflected positively on boron consumption and there was an increase in demand in the market. It is considered that the increases in demand for boron market was impacted by the increases in demand of construction/building and agriculture sectors. In this respect, it is estimated that the consumption of world boron products in the year 2017 is realized as 3.865 million tons with an increase of 2.5% compared to the previous year. In agricultural applications, consumption of boron fertilizer is increasing as a result of population increase and consciousness. In addition, there is an increasing tendency towards boron consumption in areas other than traditional boron consumption areas.


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INFORMATION ABOUT BORON The boron element, which has a semi-conductive property between metal and nonmetal, is one of the indispensable raw materials of the industry since it has a wide variety of compounding capacities and absorptivity of neutrons. Boron minerals are natural compounds containing boron oxide (B2O3) in different proportions in their structure. There are more than 230 boron minerals in the nature and the main ones which have commercial importance are tincal, colemanite, kernite, ulexite, pandermite, boracite, szaybelite and hydroboracite. The boron minerals commonly found in Turkey are “tincal”, “colemanite” and “ulexite”. The boron ores (concentrated boron), which are firstly enriched by physical treatment, are then refined to be converted into

various fine boron products. Boron is consumed mostly as refined boron products in the end-use sectors as well as directly as concentrated boron products. Boron products are used in many areas, however, most of consumption is based on glass (insulation type glass fiber, textile type glass fiber, borosilicate glass and panel glass), ceramic frit, agriculture and detergent sectors. Approximately 80% of the consumed boron products are concentrated in these four sectors. These are sectors such as less consumption, space and air vehicles, military vehicles, electronics and communications sector, polymeric materials, nanotechnology, automotive and energy sector, metallurgy and construction.

The boron minerals commonly found in Turkey are “Tincal”, “Colemanite” and “Ulexite”.


TRANSITION FROM TRADITIONAL PRODUCT TO HIGH TECHNOLOGY PRODUCT Boron Ores • Colemanit • Tincal • Ulexite

Concentrated Boron Products • Concentrated Colemanite • Concentrated Ulexite

• • • • •

Final Sectors • • • •

Glass Ceramic Agriculture Iron-Steel

High Technology Products

Refined Boron Products Etibor-48 Boric Acid Anhydrous Borax Etidot-67 Zinc Borate

• Boron Carbide • Boron Nitride • Ferroboron

Final Sectors • • • • •

Glass Agriculture Ceramic Energy Flame Retardant

Our Country has the Largest Colemanite and Tincal Reserves in the World.

Final Sectors • • • • •

Nuclear Ind. Elektric- Electronics Boron Fiberglass Defence Ind. Magnet


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BORON IN GLASS Boron is especially used in borosilicate glass, textile type and insulation type fiberglass in the glass industry. Glass products are transformed into heat and chemical resistant materials with the touch of boron.

Boron minerals are mostly used in the glass industry.


BORON IN CERAMICS Boron is mainly used in ceramics glazes and porcelain enamels in ceramics industry, but also in ceramics tile body compositions in less amounts. With use of boron and boron products, it reaches a new structure which is more resistant to ceramic, physical impact and chemicals. It helps to achieve vivid and bright colors by ensuring better adhesion of the paint in the aesthetizing stage of ceramic.

Ceramics are the oldest and the second largest market for boron after glass.


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BORON IN AGRICULTURE Since the boron element has the basic functions in plants and strengthens the root growth of the plant, the plant benefits from water and other nutrients in the soil. It provides the sugar produced in photosynthesis to be carried to roots, body and fruits. Use of boron, which makes the efficiency taken from agricultural products to top level is of great importance in quality and development of plants.


100% local manufacture Etidot-67, which increases yield and quality in agriculture, is with our farmers for better production... It increases the flowering, the fertilization and the fruitfulness of the plant and strengthens the membrane stability by joining to the structure of the cell wall and makes the plant more resistant against damages. Therefore, the boron increases yield and quality of the plant. By eliminating the boron deficiency, product yield and quality parameters are increased and economically important return is provided for the end user. Etidot-67 (Disodium Octaborate Tetrahydrate) has higher Boron content and higher solubility than the other boron fertilizers. Etidot-67, which can be given to the plant from both the leaves and the soil, provides ease of application.

Efficient Soil Powerful Plant

ETÄ°DOT-67


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BORON IN CLEANING Cleaning products, which are among the fast moving consumer goods renew themselves continuously and rapidly according to developing and changing life conditions, made Eti Matik Boron Cleaning Product to renew itself according to the demands and recommendations from the users. In addition, product diversity was increased in order to compete with market needs and other products, and as result of R&D studies, “Eti Matik Boron Cleaning Product for Whites”, “Eti Matik Boron Cleaning Product for Colors” and “Eti Matik Boron Cleaning Product for Curtain Fabrics” have been created and presented to the mark 2017. In the light of the requests from the customers, Halal Certificate was taken from Turkish Standards Institute for Eti Matik Boron cleaning product on 14.11.2017.

Cleaning Product with Boron

Eti Matik was developed as a natural cleaning product containing boron.


HEALTHY

CLEANING It is a natural and environmentally friendly cleaning product in terms of anti-allergic and environmental effects.


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BORON IN IRON AND STEEL The material in powder form, which is created in the iron and steel industry during the melting process of scrap materials and is called slag, is a side which does not have wetting and compacting properties and causes a lot of transportation and storage troubles because it takes up a lot of space. The slag, which transforms into a compact structure with addition of boron, becomes reusable by eliminating the problems of storage and transport. The slag obtained with addition of boron products does not threaten human health and is environmentally sensitive. It helps to make saving with low storage costs.

BORON AND BORON PRODUCTS MINIMIZES HIGH COSTS AND PROVIDES SAVING IN PRODUCTION.



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BORON IN THE WORLD Boron reserves are concentrated in 4 regions as Turkey, Russia, the United States and the South America.

TURKEY

73.6%

USA

2.6%

RUSSIA

3.1%

KAZAKHSTAN

8.0%

OTHERS

12.6%

CHINA

4.0%

CHILE

3.2%

PERU

1.7%

BOLIVIA

1.5%

ARGENTINA

0.7%

SERBIA

1.6%

Total

100%


The worlds total boron reserve is about 4.5 billion tons


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WORLD

BORON LEADER

WORLD SECTORAL BORON CONSUMPTION 47% Glass

Agriculture

16%


World boron consumption for the year 2017 is 3.86 million tons

16%

Ceramic

2%

Detergent Other

19%


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BORON IN TURKEY Turkey has 73% of the worlds boron reserves with 3.3 billion tons of boron reserves. The amount of Eti Maden Boron Products sales in 2017 is 2.2 million tons.

Known boron deposits in Turkey are in Kırka/ Eskişehir, Bigadiç/Balıkesir, Kestelek/Bursa and Emet/Kütahya. The main sectors boron products are consumed are in Turkey glass and ceramic industry. Positive/negative developments in the related sectors directly affect boron consumption.

Bursa/Kestelek

Kırka/Eskişehir

Bigadiç/Balıkesir Emet/Kütahya


TURKEY HAS

73% OF

THE WORLDS BORON RESERVES

97 % OF REFINED

B O R O N PRODUCTS ARe

EXPORTED

ETİ MADEN’S BORON PRODUCTS

SALES IN

2017 IS 2.2 milLION

TONS


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ETİ MADEN BORON PRODUCT PORTFOLIO Etibor 48 (Borax Pentahydrate) Etifert Boric Acid Granular Colemanite Borax Decahydrate Granular Ulexite Etibor 68 (Anhydrous Borax) Concentrated Colemanite Boric Oxide (Glassy, Amorphous) Concentrated Ulexite Eti-ZnBor (Zinc Borate) Calcined Tincal Ground Colemanite Eti Matik (Boron Cleaning Product) Ground Ulexite Eticol-Ceramic Etidot-67 (Agricultural Boron)


WORLD

BORON LEADER


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ETİ MADEN ACTIVITIES PRODUCTION

2017 Boron Production Amounts (Tons)

Concentrated Boron Products

Refined Boron Products

Million

Million

1.64

2

WE DESIGN THE FUTURE

OF BORON


WORLD

BORON LEADER


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BORON WORKS

R E P O R T

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BANDIRMA BORON AND ACID FACTORY WORKS It is located in Bandirma district of BalÄąkesir province. Our business administration has different production centers with plants in small capacities and it gives importance to product diversity. The facilities were established with the aim of transforming the boron minerals into high value added, refined boron products. Product diversity is given importance in the business. There is also a Sulfuric Acid Plant to meet the sulfuric acid requirements in refinery boron production processes. A large amount of the products produced are exported. The products of the Other Businesses are also exported through the installation facilities found in this business.

Products Borax Decahydrate Etibor 48 (Borax Pentahydrate) Boric Acid Boron Oxide (Glassy, Porous) Etidot-67 (Agricultural Boron) Etibor-68 (Anhydrous Borax) EtiZnBor (Zinc Borate) Sodium Perborate Sulfuric acid


VALUE CARRIED

FROM BALIKESÄ°R TO THE WORLD:

BORON


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BİGADİÇ BORON WORKS It is in the district of Bigadiç in Balıkesir province. Tuvenant colemanite and ulexite ore are produced in four open mines. The business commonly produces ground products (colemanite and ulexite). In addition, Production is made from the open quarry located in Kestelek municipality.

Products Ground Colemanite Ground Ulexite Eticol-Ceramic Concentrated Colemanite Concentrated Ulexite Natural Zeolite Granular Colemanite Granular Ulexite


IMPORTANT INPUT

OF THE CERAMIC SECTOR THE PRODUCTION CENTER OF GROUND PRODUCT


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EMET BORON WORKS It is located in Emet district of Kütahya province. The world’s largest colemanite reserves are here. Colemanite ores extracted from Hisarcık and Espey open quarries are processed at concentrator plants and then converted to the refined boron products at the plants and presented to the market. Emet Bor Operations Directorate is the boric acid production center of our organization.

Products Boric Acid Concentrated Colemanite Eticol-Ceramic


WORLD’S LARGEST

COLEMANITE RESERVES BORIC ACID

PRODUCTION CENTER


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KIRKA BORON WORKS It is located in Seyitgazi district of Eskisehir. Our business administration which is located in the area of the largest tincal reserves in the world, is the center of borax pentahydrate production of our organization. Tincal ore is extracted from open reserves and processed in facilities to convert to Etibor48 (borax pentahydrate) and borax decahydrate products in existing plants. The products are packed in Degirmenözü Stock Storage Facilities connected to the Directorate of Operations and shipped to the ports by road/ railway. In addition, works on establishment of Eti Matik (cleaning products with boron) production facility in our organization are continuing.

Products Etibor-48 (Borax Pentahydrate) Borax Decahydrate Etibor-68 (Anhydrous Borax) Calcined Tincal Eti Matik (Boron Cleaning Product)


THE LARGEST TINCAL RESERVE IN THE WORLD


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SALES

LEADER

IN BORON PRODUCTION AND SALES

MORE THAN 100 COUNTRIES IN GLOBAL MARKET

WE MEET 57% OF BORON DEMAND

IN THE WORLD

97% OF

WIDE SALES AREA TO

THE SALES MORE THAN 350

IS EXPORTED CUSTOMERS


Regional Distribution of Eti Maden’s Export Amounts AFRICA

EUROPE

1%

26%

NORTH AND SOUTH MIDDLE EAST AMERICA

17%

1%

FAR EAST

55%

Sectoral Distribution of Eti Maden’s Domestic Sales

Glass

36%

Ceramic

31%

Agriculture

7%

Cleaning

9%

Chemistry

4%

Other

14%


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LOGISTICS Distribution of Export Amounts Based on Ports Ambarlı Asyaport

Haydarpaşa

10.38%

0.03%

Evyap

10%

DELIVERY TO 215 PORTS USING 306 DIFFERENT DESTINATIONS

7.26% Bandırma

14.99%

44.74% Aliağa

6.84%

1.76% 2.24% Gemlik

DP World

Various Delivery Terms Yılport

Ex Works (EXW) Free Carrier (FCA) Carriage Paid To (CPT) Carriage and Insured Paid To (CIP)

1.76% Alsancak

Free On Board (FOB) Cost and Freigh (CFR)

Cost, Insurance and Freight (CIF)


Domestic Transports (Based on Amounts)

34% Railroad Transportation

66% Road Transport

MOSTLY WITH CONTAINERS


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R&D Our organization, which designs the future of the boron, operates in global competitive conditions environment as it has been in the past and it gives importance to R&D works in order to make difference to its competitors.

With help of the R&D and product development competence that has been strengthened by different projects until now, many products have been developed and taken to the product portfolio by our organization.

In this context, R&D activities involve;

In 2017;

• process and technological development for the purpose of improving production and product quality, • new usage areas, • innovative products meet to changing customer needs.

• Eti Matik, which is a natural, boron based cleaning product, has been developed with special product works for White, Color and Curtain fabrics. • Granular products have been produced for use in the agricultural sector and have been presented to the market. At the same time, boron products were introduced to agricultural and fertilizer sectors in the Far East market under Etifert brand. Collaborations Creating Added Value in Product Development In accordance with our new vision, the understanding of “Growing with Collaborations in Sectors based on Boron”, our target is to make collaboration with the private sector for creating new usage areas for glass (fiberglass, glass wool, borosilicate glass), ceramics, agriculture and cleaning sectors which are final and intense consumption areas of boron products. Eti Maden R&D center which integrates design processes into R&D activities closely follows the technological developments and directly contributes to the development of these technologies. Eti Maden develops products that add value to consumers’ processes and products with its R&D experience and innovation competencies.


We Develop Products that Add Value with R&D Accumulation and Innovation Capabilities


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INVESTMENTS Our organization carries out new and modern technological investments within the framework of market forecasts in order to ensure the sustainability of production and sales activities. Eti Maden, which is an investment-focused company, carries out its investments with its own equity and creates employment for the local people, contributing to the economy, as well as enhancing the production capacity with the investments made.

products, we have begun to invest in the field of boron carbide,

Our company which continues to grow sustainably with right investment decisions in its story of more than 80 years, invested in different subjects especially production, environment and R&D projects.

Zinc Borate Production Facility

In the light of our new vision of creating products used in advanced technologies from traditional boron

Balikesir (BandÄąrma) was established and commisioned. Thus,

boron nitride and ferroboron production facilities, which are used in fields such as defense, electric-electronics, iron and steel, with the awareness of high value added high technology products in the development of the boron industry. Investments Made in 2017 In order to increase the sales volume and market share by adding new products to the product portfolio, Zinc Borate Production Facility with a capacity of 10.000 tons/year in the number of product in our portfolio has reached to 17.

Investment Projects based on Subjects

Production Projects

Inf.-Building Projects

Env. Projects

Plant Imp. Projects

Energy Automation Research and Projects Exp. Projects

TOTAL INVESTMENTS SPENDINGS IN 2017

150

MILLION TRY

R&D Projects

Inf. Processing Projects


INFORMATION TECHNOLOGIES Inventory management and end-to-end product follow-up with RFID (Radio Frequency Identification) technology of Production Logistics processes initiated by our organization in 2014 and Personnel Attendance Control (PDKS) with biometric/proximity card component have been completed in the year 2017. RFID It works with RFID scaffolds, RFID hand terminals, forklift equipped with RFID system and ERP system for production and logistics processes. The vehicle scale at the output point in the product transfer point between locations gives information about which product is given in which amounts and why, to the scale at the arrival location and it is waited by the scale at the arrival location. The

vehicle refuses to accept the scale that accepts uncontrolled arrivals. Information such as packaging processes to be done, production place etc. are confirmed via hand terminals by speaking to bulk products with packaged production, vehicle scales, bulk production. Order information, product transfer information, product inventory entries, product inventory exits, identification of carrier vehicles, product packaging type etc. information are provided through online communication between devices equipped with ERP-RFID. Product logistics information can be queried with production data matrix.


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R E P O R T

HUMAN RESOURCES Our organization which is among the leading industrial organizations in the world, has adopted globally sustainable success, innovative and corporate culture and the human resources policy which adds value to each staff and stakeholder giving effort for the institution.

Status of Staff

6.699 Headquarter

5.651

Works Total 3.851 3.042 2.244

2.268

2.609

2.848

1.583 785

239

24

Officer-Cont.

1.048

809

798

Term Workers

Cont. Emp.

Subcontractor Workers

Total Emp.


The General Directorate of Eti Maden Businesses, which is aware of the fact that employees who enjoy the work and who are highly motivated are the key to sustainable success, supports the transformation of personal achievement into corporate achievement and enables the organization to achieve its corporate goals. In this context, in our organization, in which every employee is regarded as a value, regular training activities are carried out in order to bring out the potential of the employees, to facilitate the adaptation to innovation and changing structure and we give great importance to the training of employees to adopt teamwork and to develop their professional knowledge and skills, as well as their personal abilities.

In 2017, a total of 8,398 employees were trained, including 5,157 civil servants and 3,151 workers, in a total of 88 trainings consisting of 18 scheduled trainings, 17 nonscheduled trainings, 12 non-organizational trainings, 41 trainings organized by the Business Directorates. In addition, 254 students were provided with vocational training at high school level and 328 university students were given internship and applied engineering internship opportunities. In addition, various social activities are organized for the purpose of developing institutional culture. In 2017, tournaments such as bowling, volleyball and table tennis were organized among the units of the headquarters.


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OCCUPATIONAL HEALTH AND SAFETY Our primary goal for sustainability is human and therefore to ensure that all activities within the company are carried out in a healthy and safe working environment. Within the scope of Occupational Health and Safety Management System within our organization, the following measurements are made; • dust, noise, vibration, • lightening, • thermal comfort (temperature, humidity, airflow rate) • environmental and personal exposure measurements involving gas measurements. In addition, according to hazard classes, the following are made periodically; • • • •

general health examinations, chest radiographies, spirometry (respiratory function) test, eye examination, audiometry (hearing) test. In this scope; fire training was provided by our organization and first aid training was organized.


ENVIRONMENT Our company which is respectful to environment, from planning until implementation, minimizes environmental impact of activities by taking precautions within the national and international standards and realized environmental friendly production. In this context, the objectives are; • Successfully implementing waste management • Reducing negative environmental effects • Making environmentally oriented improvements in the processes • Contributing to creation of environmental awareness

CONTRIBUTION TO VALUES (Afforestation)

THE

ENVIRONMENTAL

In accordance with of environment friendly policies, our organization is carrying out afforestation in order to rehabilitate the lands that have been completed. ENVIRONMENTAL APPROACH TO PRODUCT AND PRODUCTION All operations are always carried out in the direction of environmentally friendly policies.

We reforest the fields that have been completed.


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INTEGRATED MANAGEMENT SYSTEM • To evaluate mineral and industrial raw material resources of our country in accordance with the mining policy of the government and to ensure maximum contribution to the economy, • To implement and continuously improve Quality, Environmental, Occupational Health and Safety, and Energy Management Systems pursuant to related legal and all other requirements, • To meet our customers’ needs and demands on time with required quality by adopting customer orientation as a principle, • To prefer environment-friendly materials in our businesses in order to prevent pollution and to improve environmental performance as well as to carry out waste management and environmentally beneficial activities in order to preserve the environment, • To lower energy costs and improve energy efficiency, • To establish a healthy and safe environment for our employees and avoid occupational accidents and workforce losses, policies.

TS EN ISO 9001:2008 Quality Management System Certificate

IMS DOCUMENTS

with the Information Security Management System, which

TS 18001:2004 Occupational Health and Safety Management System Certificate.

PC support services in the Headquarters building.

TS EN ISO 14001:2004 Environment Management System Certificate TS EN ISO 50001 Energy Management System Certificate LABORATORY QUALITY POLICY TS EN ISO/IEC 17025 Our organization makes the physical and chemical analysis services of all kinds of ore, concentrate, waste, semi-finished and refined products by using national and/or international standard analysis methods in its laboratories conforming to TS EN ISO/ IEC 17025 standard. INFORMATION SECURITY MANAGEMENT SYSTEM ISO/ IEC 27001 The organization ensures the confidentiality, integrity and accessibility of information through a risk assessment approach includes operations, communication, software, hardware and


We use international standard methods in laboratories conforming to TS EN ISO/IEC 17025 Standards


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CONTACT Headquarter Eti Maden İşletmeleri Genel Müdürlüğü Ayvalı Mah. Halil Sezai Erkut Cad. Afra Sok. No: 1/A

Eti Maden İşletmeleri Bigadiç Boron Works 10441-Bigadiç / BALIKESİR Phone : +90(266) 633 72 21

06010 Etlik-Keçiören/ANKARA

Fax

Phone : +90(312) 294 20 00

Logistics Unit

Fax

: +90(312) 230 71 84

Additional Service Building Bahçekapı Mah. Fatih Sultan Mehmet Bulvarı No: 179

: +90(266) 633 72 23

Eti Maden İşletmeleri Bandırma Logistics Unit 10200 Bandırma/BALIKESİR Phone : +90(266) 714 67 00

Etimesgut / ANKARA

Fax

Phone : +90(312) 294 24 93

Domestic Affiliate

Fax

Eti Soda A. Ş.

: +90(312) 397 16 55

Boron Works Eti Maden İşletmeleri Bandırma Boron and Acid Plants Works 10200 - Bandırma / BALIKESİR Phone : +90(266) 721 31 00 Fax

: +90(266) 721 31 25

Eti Maden İşletmeleri Kırka Boron Works 26970 - Seyitgazi Kırka / ESKİŞEHİR Phone : +90(222) 681 22 00 Fax

: +90(222) 681 22 02

Eti Maden İşletmeleri Emet Boron Works 43700-Emet / KÜTAHYA Phone : +90(274) 461 34 00 Fax

: +90(274) 461 34 03

: +90(266) 714 67 00

Bağözü Mevki 06730 Beypazarı/ANKARA Phone : +90(312) 763 38 01 Fax : +90(312) 763 38 02


Overseas Subsidiaries ETIMINE SA

AB ETIPRODUCTS OY

ETIMINE USA INC.

ETIPRODUCTS LTD.

Bettembourg, Lüksemburg Phone : +352 520202 Fax : +352 520203 Email : boronmail@etimine.com www.etimine.com Pittsburgh, PA ABD Phone : +1 412-809-8215 Fax : +1 412-809-8217 Email : etimineusa@etimineusa.com www.etimineusa.com

SHANGHAI ETİMADEN CHEMICALS CO. LTD.

Shanghai, Çin Phone : 021-61370370-3001 Fax : 021-33632413 Email : info@etimine.com.cn www.etimine.com.cn

Espoo, Finlandiya Phone : +358 9 819 44 40 Fax : +358 9 819 444 44 Email : sales@etiproducts.com www.etiproducts.com Moskova, Rusya Phone : +7 (499) 995 23 83 Fax : +7 (499) 995 23 82 Email : info@etimaden.ru www.etimaden.ru


Notes:



WORLD

BORON LEADER

etimaden.gov.tr


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