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Worldwide cost leadership is achieved through a world-class resource base with leading-edge technology for mining and processing, an optimal process environment and the professionalism of the NLMK team.

Iron ore

Iron ore concentrate (iron content is about 66%), pellets (iron content is about 65%) and sinter ore (iron content is about 55%) are the key input materials in pig iron and BOF steel production.

Stoilensky is one of the most efficient iron ore producers in the world, with a production cost of around $12/tonne of iron ore concentrate. Stoilensky’s iron-ore reserves are upward of 5 billion tonnes. It is located 250 km from the Group’s main production facility in Lipetsk.

Coke and coking coal

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.

Captive production of coke guarantees NLMK high-quality coke products, which boosts the efficiency of operations further along the value chain. 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 2017, NLMK has launched hot-testing of pulverized coal injection (PCI) unit at Novolipetsk’s Blast Furnace No. 6 and 7, partially supplanting expensive coke and natural gas with a far more cost-effective alternative. Over 90% of the plant’s blast furnace capacities will now be covered by this resource-saving 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.

NLMK’s scrap collection and processing network is the largest in Russia and secures stable delivery of scrap to NLMK Group’s Russian steelmaking facilities.


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.

Captive electric energy is generated primarily through the recovery of by-product gases from coke and blast furnace operations.

  • Over 100% self-sufficiency in coke
  • 86% self-sufficiency in pellets
  • 92% self-sufficiency in iron ore concentrate and sinter ore
  • 76% self-sufficiency in scrap
  • 53% self-sufficiency in energy
  • Over 100% self-sufficiency in flux