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3 July 2017 Stoilensky

Stoilensky pelletizer produces its 3-millionth t of pellets

Stoilensky pelletizer produces its 3-millionth t of pellets

Stoilensky, part of NLMK Group, an international steelmaking company with operations in Russia, the European Union and the USA, has produced its three-millionth tonne of pellets at its pelletizing plant, one of the largest in Europe.

Launched in November 2016, the pelletizing plant was recognized as the 2016 Event of the Year in the Russian steel industry by experts at the Metal-Expo'2016 international exhibition. The plant has a design capacity of 6 million tonnes of pellets per year. The pelletizer equipment allows for a further 20% expansion of this capacity to reach 7.2 million tonnes of pellets per year.

The concept behind the design of the pelletizing plant is that of an environmentally friendly, waste-free facility, in which waste charge material and captured dust are fully recycled. A high efficiency dedusting system captures up to 98% of emissions.

Sergey Napolskikh, Stoilensky General Director, said:

“It’s an important milestone for Stoilensky, its three-millionth tonne of pellets. Thanks to our motivated and highly qualified team, the plant was able to reach design capacity in just 6 months and has since gone from strength to strength. We supply over 500,000 tonnes of 64.8% Fe pellets (in line with the project parameters) to NLMK Lipetsk every month. The induration machine is running at 789 tonnes/hour, as expected. Achieving all the set goals will enable us to ensure NLMK Group’s control over raw material costs.”

This high-tech facility took two years to build. The active phase of the project, which is the largest in its region, began in 2014 and required a total investment of around $680 million (34 billion rubles).

The best available technology and equipment was selected during the design phase. The largest induration furnace in Europe ensures the plant’s high performance at 780 tonnes of pellets produced per hour.

The launch of the pelletizer that is of strategic importance for NLMK Group enabled the Company to consolidate its position as one of the most efficient steelmakers in the world by supplying its blast furnaces with low cost captive raw materials.

About Stoilensky

Stoilensky (an NLMK Group company) is one of the three leading Russian iron ore-mining companies. The company accounts for over 18% 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, sinter ore and iron ore pellets. Its commercial reserves are over 6 billion tonnes.

In November 2016, NLMK Group successfully completed the construction of a pelletizing plant at Stoilensky, the key investment project of its ‘Strategy 2017’. The plant has a production capacity of 6 million tonnes of pellets per year. The launch of the new plant has enabled NLMK Group to significantly reduce its costs of iron ore used in blast furnace operations at NLMK Lipetsk, resulting in a lower cash cost of NLMK steel.

For more information on Stoilensky, please visit www.sgok.nlmk.com

About NLMK Group

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

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

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 the most competitive cash cost among global manufacturers and one of the highest profitability levels in the industry. In FY2016, the Company generated $7.64 billion in revenue and $1.94 billion in EBITDA. As of 31 December 2016, Net debt/EBITDA stood at 0.36х. The company has an investment grade credit rating from S&P and Fitch.

NLMK’s ordinary shares with a 16% 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"). For more details on NLMK shareholder capital, please follow the link.

NLMK Group received the Steel Industry Leadership Award at the prestigious 2016 Platts Global Metals Awards held by S&P Global Platts, a leading international industry analytical periodical.