22 August 2014 Новолипецкий металлургический комбинат

NLMK to equip blast furnace operations with highly efficient dust collection system

NLMK Group, Russia’s leading manufacturer of steel and high value added rolled steel products, has announced its commitment to construct a modern modular dust collection system at its Lipetsk production site to treat off-gases from Blast Furnace #4.

With a capacity of 600,000 m3/h, the new system will bring residual dust content down by 30 times, to 5 mg/m3. This will reduce the annual dust emissions by 504 tonnes to reach the level of best available technologies.

Currently, gases from BF-4 are de-dusted by a previous generation dust collection system that uses the water sprinkling method.

Investment into the construction of the new dust collection system will total approximately RUB 250 million, with launch planned for the end of 2015.

This project is part of NLMK’s Environmental Programme 2020, aimed at further minimizing the Company’s environmental footprint. Total investment into NLMK Group’s environmental measures will amount to RUB 10.6 billion.

Sergey Filatov, NLMK Managing Director, said:

“NLMK’s large-scale technical upgrade programme with the implementation of innovative environmental technologies has allowed us to achieve environmental results that are unique for Russian integrated steelmakers, while at the same time doubling production volumes. The new environmental project is another step towards our goals that are set out in our recently launched Environmental Programme 2020. We strive to achieve the best global standards in terms of production efficiency, including environmental standards.”

About Novolipetsk (NLMK’s main production site in Lipetsk)

Novolipetsk is the main production site of NLMK Group, Russia’s leading manufacturer of steel and high value added rolled products, and one of the most efficient steelmaking companies in the world. Novolipetsk is the nucleus of NLMK Group’s single production chain, with assets in Russia, the EU and the USA.

Currently, the steel production volume of the Lipetsk site is in excess of 12 million tonnes per year, or approximately 18% of all steel produced in Russia, and approximately 80% of all steel products produced by NLMK Group.

Novolipetsk has a consistent policy aimed at controlling and reducing the Company’s environmental footprint. In 1975, Novolipetsk developed a comprehensive environmental management system, the first among Russian steelmakers. In 2002, NLMK’s environmental management system was certified for compliance with the ISO 14001 international standard. Annual audits have invariably confirmed the efficiency of all parts of NLMK’s environmental management system.

The Company’s systematic approach to environmental issues, the development and successful implementation of environmental measures and advanced technologies aimed at achieving the best global environmental results, have been recognized on multiple occasions at different levels. In 2014, Novolipetsk won the “100 Best Company’s in Russia. Ecology and Environmental Management” competition in the “Best Environmental Service” nomination. NLMK’s Managing Director Sergey Filatov was awarded the honourary title of “Environmentalist of the Year”. NLMK’s environmental efforts have already been recognized four times in various nominations of this prestigious competition.

About NLMK Group

NLMK Group is a vertically integrated steelmaking company, and Russia’s leading manufacturer of steel and HVA rolled products. NLMK Group’s high-quality steel products are used in a variety of industries, from construction and machine-building to the manufacture of power generation equipment and offshore windmills.

NLMK’s production facilities are located in Russia, Europe and the USA. The Company’s crude steel capacity is over 17 million tonnes per annum, of which approximately 16 million tonnes are located in Russia. The Company generated $10.9 billion in revenue and $1.5 billion in EBITDA in 2013.

During the second stage of its technical upgrade programme, between 2007 and 2012, NLMK Group invested over RUB 21 billion into environmental activities. A total of RUB 258 billion was invested into upgrades and new capacities, including RUB 7.5 billion into environmental technologies at the NLMK Kaluga new generation steelmaking plant launched in July 2013. During this period, steel production at NLMK Group’s Russian plants grew by 52% to 14.2 million tonnes.

Specific air emissions reduced by 40% (from 37.5 to 22.6 kg per tonne of steel); waste water discharge was reduced by 54 times (from 1.08 to 0.02 kg/t), with zero waste water discharge at the Lipetsk site.

In May 2014, NLMK Group announced the new stage of its Environmental Programme leading up to 2020 (Environmental Programme 2020). This programme is 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.

By 2020, the Programme will allow NLMK to reach the best global environmental standards. Specific air emissions will be approaching the level of global best available technologies; there will be zero waste water discharge at all Group sites; waste recycling will grow five-fold; and the slag heap at the Lipetsk site will be reclaimed.

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”).