Our extensive resource base is situated in a low-cost region (Russia). Our Russian assets fully supply the Group’s requirements for iron ore concentrate, sinter ore, and coke, and the majority of our scrap and electrical power needs.
Iron ore concentrate (iron content is about 66%) and sinter ore (iron content is about 55%) are the key input materials in pig iron and BOF steel production.
Stoilensky supplies all of the Group’s requirements for iron ore concentrate and sinter ore, and when our pelletizing plant is completed, it will cover all NLMK’s needs for iron ore, including iron ore pellets. In addition, its ferruginous sludge (waste) utilization technology will allow us to further reduce our consumption of iron ore. Iron ore production at Stoilensky increased by 820,000 tonnes in 2015 as a result of operational efficiency programme gains.
Coke is used as a raw material in the production of pig iron. It is obtained by baking a blend of several grades of ground coking coals.
Altai-Koks and the coke batteries at the Lipetsk site supply more than 100% of the Group’s requirements for coke, which is used in the blast furnaces to produce pig iron. In 2014, pulverized coal injection (PCI) technology was introduced at Novolipetsk’s Blast Furnace No. 4, partially supplanting expensive coke and natural gas with a far more cost-effective alternative. Currently more than 30% of Novolipetsk blast furnace capacities are equipped with the technology.
Steel is fully recyclable. At the end of their useful life, steel products can be used as input for smelting. Scrap is used in both EAF and BOF operations.
Scrap processing businesses within NLMK Group provide about 70% of the ferrous scrap required by our Russian steelmaking plants. To supply the increased demand for scrap (taking into account the rise in scrap consumption following the launch of NLMK Kaluga), the Group is continuing to develop its scrap processing division. In 2015, the scrap processing division focused on operational efficiency initiatives.
Fluxes are used to manufacture refractories, and in sinter and BOF processes.
Stagdok (limestone) and Dolomit (dolomite) fully cover our flux requirements.
Electricity is one of the main energy sources used in steel production.
NLMK has generating plants run mainly on by-product gases from coke and blast furnace operations. In 2015, the Lipetsk site was 57% energy self-sufficient. At Altai-Koks, enough energy is generated to meet all of the Company’s requirements, and the excess is sold to third-party consumers.