NLMK, Belgorod Region administration and Russian Ministry sign MOI for new metals and mining project

LONDON, UK: NLMK Group, the Belgorod Region administration, and the Russian Ministry of Industry and Trade have signed a Memorandum of Intent for a project to construct a new metals and mining facility at the Stoilensky Mining and Beneficiation plant, a news release said.

The project is based on the most advanced and environmentally friendly technologies, and encompasses the development of several production stages and mastering a new product for the company, hot-briquetted iron (HBI).

The project covers the expansion of the existing open-pit mine to increase iron ore output from 43 million tonnes to 67 million tonnes per year, the construction of new beneficiation capacities for a total of 10 million tonnes of concentrate, a pelletizing plant with a capacity of 9 million tonnes of pellets, and an HBI shop with a capacity of 2.5 million tonnes of HBI.

The new facility will be built with the strictest environmental norms in mind. It will employ the best available technologies ensuring that the environmental impact of production is minimized: gas purification systems, a closed loop water system, reuse of waste, conveyor transport in the open-pit mine, etc.

The project is set to create up to 1,300 new high-tech jobs. Investment will total approximately 250 billion rubles. Project implementation is planned for 2024-2027, with step-by-step commissioning scheduled for 2027-2028.

The Memorandum of Intent was signed by NLMK CEO Grigory Fedorishin, Acting Governor of the Belgorod Region Vyacheslav Gladkov, and Deputy Minister of Industry and Trade Viktor Evtukhov.

Grigory Fedorishin, NLMK CEO, said: “Hot-briquetted iron is currently in demand both in Russia and on the global market. Using this product in making steel cuts CO2 emissions in half vs. traditional technologies. The project marks the beginning of NLMK Group’s planning process for its new strategic development stage, Strategy 2030. High-tech integrated digital production with a low carbon and climate footprint is set to reinforce the company’s competitive advantages.”

NLMK Group is the largest steelmaker in Russia and one of the most efficient in the world.

NLMK Group’s steel products are used in various industries, from construction and machine building to the manufacturing of power-generation equipment and offshore wind turbines.

NLMK operates production facilities in Russia, Europe, and the United States. The Company’s steel production capacity exceeds 17 million tonnes per year.

NLMK has a highly competitive competitive cash cost among global manufacturers and one of the highest profitability levels in the industry. The Company has investment grade credit ratings from S&P, Moody’s, Fitch, and RAEX (Expert RA).

NLMK’s ordinary shares with a 20.7% free-float are traded on the Moscow Stock Exchange (ticker “NLMK”) and its global depositary shares are traded on the London Stock Exchange (ticker “NLMK:LI”). The share capital of the Company is divided into 5,993,227,240 shares with a par value of RUB1.

Novolipetsk Steel PAO

265.94 RUB 0.00 (0.00%)

2 Jun, 11:49 pm GMT+3 · Disclaimer


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