23 April 2015

NLMK Group continues to improve environmental performance

NLMK Group continues to improve environmental performance
NLMK Group (LSE: NLMK), the largest steelmaker in Russia and one of the most efficient in the world, continued to improve its environmental performance in 2014 through its Environmental Programme 2020 initiatives.

NLMK Group companies brought down air emissions by more than 7% compared with the previous year, to reach 20.3 kg/t of steel; whilst the level of best available technologies for a vertically integrated steel company is 19.4 kg/t of steel. The Group’s specific water consumption decreased by 5% to 5.2 m³/t of steel, which is below the level of best available technologies of 7 m³/t of steel. Waste water discharge was down by 13% to 0.02 kg/t. Recycling levels at NLMK Group’s steelmaking assets exceeded 90%.

Yuri Larin, NLMK Vice President, Technology Development & Operational Efficiency, said: “It is important to note that we were able to improve our environmental performance whilst setting new record production volumes. NLMK Group’s Russian sites implemented 15 large-scale environmental projects in 2014. Environmental investments increased by 27% to 5.4 billion rubles. We are systematically implementing environmental projects and approaching our goals.”

The majority of environmental projects in 2014 were aimed at safeguarding the air and water at our sites. At NLMK’s main production site in Lipetsk construction of a biochemical waste water treatment facility at coke and chemical operations was completed, enabling the Company to improve the standard of waste water treatment for reuse in the closed-loop water cycle. NLMK’s de-dusting equipment was fitted with 790 new high-efficiency filters; with completion of an upgrade of the dust collection system at the refractory shop providing a ten-fold reduction of the residual dust content in off-gases.

The first stage of reconstruction of the off-gas treatment systems at EAF shops at the Ural-based NSMMZ plant in Revda was completed. VIZ-Steel in Yekaterinburg upgraded its storm water treatment facilities; and the installation of a dust suppression system at the tailings beaches was completed at Stoilensky; and a series of preventive repairs with a positive environmental effect was completed at Altai-Koks.

At present the environmental activities of NLMK Group’s Russian companies are fully in line with international environmental safety management standards. This was confirmed by oversight and recertification audits of environmental management systems, in the form of the international ISO 14001:2004 Environment Management System certification at Novolipetsk, Stoilensky, and VIZ-Steel; and in the form of ISO 14001:2007 certification at Dolomit and Stagdok.

About the Environmental Programme

During Stage 2 of NLMK’s Technical Upgrade Programme between 2007 and 2012, the Group invested more than 21 billion rubles in environmental projects. NLMK Group invested a total of 258 billion rubles in upgrades and new capacities, including RUB 7.5 billion invested in environmentally-friendly technologies at NLMK Kaluga, NLMK’s new-generation plant launched in July 2013. Over this period, steel output at NLMK Group’s Russian sites has increased by 52% to 14.2 million tonnes; whilst specific air emissions decreased by 40% from 37.5 to 22.6 kg per tonne of steel; and waste water discharge was reduced by 54 times from 1.08 to 0.02 kg/t. Waste water discharge at the Lipetsk site has been completely eliminated.

In May 2014, NLMK Group announced Environmental Programme 2020; the new stage of its Environmental Programme leading up to 2020, part of the Group’s development strategy and investment programme. It is aimed at further minimizing our environmental footprint and achieving the best possible environmental standards in global steel production. Investment in environmental initiatives and projects at NLMK Group companies will total RUB 10.6 billion. Most of the funds will be invested at NLMK’s Lipetsk production site. The Programme will enable NLMK to close in on the level of best available technologies by 2020.

About NLMK Group

NLMK Group is the largest steelmaker in Russia and one of the most efficient in the world. NLMK’s high-quality metal products are used in various industries, from construction and engineering to the manufacture of power-generating equipment and offshore wind turbines.

NLMK's production assets are located in Russia, Europe, and the United States. The Company’s liquid steel production capacity is over 17 million tonnes per year, of which about 16 million tonnes are produced in Russia. The company generated $10.4 billion in revenue; $2.4 billion in EBITDA; and a net profit of $845 million in 2014.

NLMK’s ordinary shares are traded on the Moscow Stock Exchange (ticker symbol: NLMK), and its global depositary shares are traded on the London Stock Exchange (ticker symbol: NLMK:LI).