PARK ELEKTRIK

Park Elektrik, which is the sole public Company of Ciner Group, has been listed in Borsa Istanbul A.S. (“Borsa”) since 1997.

Park Elektrik Üretim Madencilik Sanayi ve Ticaret A.S. (“Park Elektrik”, “Company”) was established on March 18th, 1994 to carry out activity in textile sector under the legal title of Park Tekstil Sanayi ve Ticaret A.S. (“Park Tekstil”). Company’s shares started to be traded in Borsa with the initial public offering performed in 1997. Park Elektrik was operating in the textile sector when shares offered to public and its main activity was home textile production. The production plant was located in Edirne, Turkey.

Park Elektrik changed its legal title and subject of activity in order to carry out activity in mining and energy sectors with amendments made to its articles of association in 2000, and has been acvite on these two fields since then.

The Company started to produce concentrated copper in 2006 in copper mine located in Siirt Madenköy, and mine ore produced in copper mine was processed into concentrated copper in concentration center, and most of the end-product exported. Park Elektrik, which carried out its activities on copper mining between 2006 and 2017 sold its copper mine assets as of March 2017 and ceased its activities in that area.

The Company changed its operations following the sale of the copper production business and purchased 100% of the shares of Konya Ilgın Elektrik Üretim San. ve Tic. A.Ş. (“Konya Ilgın”) owned by the main shareholders of the Company, Park Holding A.S. and Turgay Ciner.

Konya Ilgın Elektrik Üretim San. ve Tic. A.S. wholly owned by the Company carries out a greenfield project to establish an integrated thermal power plant with supercritical fluid bed boiler technology that will have a planned installed capacity of 500 MW. Furthermore, The Company’s subsidiary Konya Ilgın has the operating rights of lignite coal mine fields located in Konya, Ilgın through its mining operation licenses (fields with license number 1247 and 2444) and royalty agreement (field with license number 1247).

Konya Ilgın Thermal Power Plant Project is a greenfield investment project, the timing of which is affected by many factors such as the path of the Turkish Lira against the US Dollar, supply and demand of electricity in market, electricity prices and incentives provided to renewable energy resources and domestic resources. As of today, due to recent economic and sectoral developments observed in Turkish electricity market that are out of Company’s control, the construction of the thermal power plant has not commenced yet.

Moreover, the bauxite mine field located at Islahiye district of Gaziantep, for which Park Elektrik has operating license numbered 78173, has signed a royalty agreement with CTC Enerji Madencilik San. ve Tic. A.Ş. The Company started to earn royalty income within the scope of this agreement as of the third quarter of 2019. CTC Enerji continues its mining activity with open-pit method and the bauxite ore obtained is processed in the splitting-screening facility and offered for sale in different sizes. CTC Enerji pays the royalty fee of USD 3,20 per ton of ore produced from the bauxite field to the Company.