25 November 2014 Stoilensky

NLMK Group upgrades water recirculation system at Stoilensky

NLMK Group upgrades water recirculation system at Stoilensky
As part of a programme to reduce environmental impact and increase the efficiency of its production infrastructure, NLMK Group has begun construction on the second stage of the thickening unit, water recirculation and tailings transportation system at Stoilensky.

The launch of this facility will mark a complete switch to a more efficient way of handling, transporting and storing waste ore after beneficiation.

The new technology, unlike the old gravity-fed system, makes it possible to extract liquid from tailings and transport thickened waste ore. This will save resources – 80% of the industrial water which was previously used in transportation will be recycled and returned to the beneficiation process.

This will reduce environmental impact, improve the throughput of the tailings transportation system and save energy. Electricity consumption at the tailings department will drop by 9% (13.9 million kWh) due to the change in the way water is supplied to the beneficiation plant.

The transition to the new technology will be completed in 2018 with the construction of the third stage of the thickening unit. The first stage entered service in 2013 – investment in the construction of the thickening unit and infrastructure totalled RUB 3.1 billion. The second stage is due to be commissioned in 2016, with testing of the third stage set to start in 2018. Investment in construction of the final two stages of the project will amount to around RUB 3.3 billion.

Yuri Larin, General Director at Stoilensky, said:

“This is one of the most important elements in Stoilensky’s development programme, and will ensure operational stability. In addition, a series of initiatives is under way at Stoilensky to increase production efficiency. These have already led to an increase in capacity of approximately 1 million tonnes per year without significant additional investment.”

The transition to new, environmentally-friendly technologies is part of NLMK’s Environmental Programme 2020, which is designed to further minimize the company’s impact on the environment and achieve the highest global environmental standards in the steel industry.

About Stoilensky

Stoilensky (part of NLMK Group) is one of the three leading Russian iron ore-mining companies. The company accounts for over 15% of Russia’s total iron ore production.

Stoilensky is unique in combining high efficiency with low production costs and the very highest production quality. Its main products are iron ore concentrate and sinter ore. Its commercial reserves are around 5 billion tonnes.

NLMK Group’s Strategy 2017, announced in February 2014, is focused on unlocking the internal potential of the Group’s businesses by boosting operational and process efficiency and increasing self-sufficiency in its main raw materials. The strategy is aimed at developing a world-class resource base for the Group by increasing self-sufficiency in iron ore with a flexible feed structure to 100% (pellets, sinter, sinter ore) and reducing consumption of valuable resources.

As part of Strategy 2017, the largest pelletizing plant in Europe is being built at Stoilensky with a capacity of approximately 6 million tonnes of iron ore pellets per year. The programme will also involve increasing production of iron ore concentrate by 0.5–1 million tonnes per year through streamlining operations, constructing new ore production facilities and increasing the mine’s capacity.

Stoilensky’s environmental projects are part of NLMK Group’s long-term environmental policy which will take the company through to 2020 (Environmental Programme 2020). NLMK Group is investing a total of RUB 10.6 billion in its environmental initiatives and projects.

About NLMK Group

NLMK Group is a vertically integrated steel company and Russia’s leading steel maker and manufacturer of rolled products with high added value. 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 facilities are located in Russia, Europe and the USA. The Company’s crude steel capacity is over 17 million tonnes per year, of which approximately 16 million tonnes are located in Russia.

NLMK has the most competitive cash cost among global manufacturers; and one of the highest profitability levels in the sector. The Company generated USD 10.9 billion in revenue, and EBITDA of USD 1.5 billion in 2013.

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