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Strategy in action

Leadership in operational efficiency
Leadership in sustainability and safety
Leading positions in strategic markets
World-class resource base
  • $330million

    target net annual gains by the end of 2017

  • $523million

    using 2017 prices vs. 2013 base base-level

  • 3,050

    projects to improve operating efficiency

Stoilensky (an NLMK Group company, core asset of NLMK Mining Division) has embarked on the implementation of a predictive management system for ore crushing and beneficiation processes. In the long run, this will enable an increase in the efficiency of the beneficiation equipment to 400,000 tonnes of concentrate per year.
NLMK Group, an international steelmaking company with operations in Russia, the USA, and the European Union, has commissioned four more high-pressure grinding roll (HPGR) units, boosting productivity of Stoilensky’s Beneficiation Plant by 0.8 mt of iron ore concentrate to 17.4 mtpa.
The Company’s European operations continued to look at ways to cut fixed costs, including by headcount optimisation.
NLMK Kaluga is in the midst of a large-scale operational efficiency improvement project as well as rollout of the NLMK Production System, in cooperation with DuPont. Significant savings are expected when this is up and running.
Improvement of equipment productivity throughout NLMK’s mining operations during 2016 helped to boost production of iron ore concentrate by 2 million tonnes vs. the 2013 level.
The productivity of steelmaking equipment at the Lipetsk site has increased thanks to new technical solutions and operational efficiency projects. The production capacity of blast furnace operations increased by 1 million tonnes vs. the 2013 level; and BOF and hot-rolling productivity increased by 500,000 tonnes.
US operations achieved a 70% reduction in rejected hot-rolled steel.
Improvement in equipment productivity across NLMK’s mining operations in 2015 helped boost production of iron ore concentrate by 820 thousand tonnes per annum.
NLMK’s long steel business unit improved process equipment productivity, increasing annual production by 30,000 tonnes.
New technology solutions and process optimisation enabled the Lipetsk site to improve equipment productivity, reduce the coke consumption rate by 20 kg per tonne, enhance the use of return slag by 40% and reduce the level of rejected hot-rolled steel by 50%.
  • Compliance with international OHS standards

Specific air emissions decreased by 1% year-on-year to 20.5 kg/t, with an overall decrease of 6% vs. the 2013 level
Labour productivity increased by 4% across the Group, with 29% growth overall vs. the 2013 level
Specific air emissions decreased by 1% year-on-year to 20.8 kg/t, with an overall decrease of 5% vs. the 2013 level
LTIFR at NLMK’s Russian facilities reduced to 0.34, which is significantly below the level of best global practice
In 2015 labour productivity rose by 6% y-o-y across NLMK Group companies. In 2014 labour productivity increased by 8% y-o-y.
Emission rate in 2015 dropped by 1% y-o-y to 20.9 kg/t of steel, in 2014 emission rate declined by 4% y-o-y to 21.1 kg/t of steel.
Lost-time injury frequency rate (LTIFR) at NLMK’s Russian assets in 2015 declined by 22% y-o-y to 0.43, vs best world practice of 0.6. In 2014 LTFIR at NLMK's Russian assets dropped by 34% to 0.55.
  • $190million

    target net annual gains by the end of 2017

  • $111million

    using 2017 prices vs. 2013 base-level

Sales in home markets increased by 4%, reaching 65% of total sales.
Sales increased by 3% to a record high of 16.5 million tonnes.
Sales of niche Quard and Quend plates increased by 25% to 89,000 tonnes.
Sales in home markets increased by 8%, reaching 65% of total sales.
Sales increased by 1% to 15.9 million tonnes.
NLMK Group's utilization rate reached 95%.
Sales of steel products in 2015 grew by 5% y-o-y to 15.9 million tonnes.
Plate sales at NLMK DanSteel in 2015 have increased by 9% y-o-y.
In 2015 share of sales to the Russian market totaled 39%.
In 2015 NLMK Kaluga production capacities were loaded by 83%.
  • $384m

    using 2017 prices vs. 2013 base-level

  • $480m pa

    target net annual gains by the end of 2017

NLMK Group has commissioned four more high-pressure grinding roll (HPGR) units, boosting productivity of Stoilensky’s Beneficiation Plant by 0.8 mt of iron ore concentrate to 17.4 mtpa.
Thanks to these projects and improvements, the Lipetsk site has reduced its consumption of expensive raw materials and energy. Iron ore consumption has been reduced by 2%, coking coal consumption by 2%, coke consumption by 6%, and consumption of natural gas has been reduced by 12% vs. the 2013 levels.
In 2016, Stoilensky undertook the first implementation of high-pressure grinding rollers (HPGR) technology in Russia, which delivered a boost of 1 million tonnes to the facility’s beneficiation capacity.
The Stoilensky Pelletizing Plant was launched in November 2016. The plant, which has a production capacity of 6 million tonnes, will enable NLMK to cease purchases of pellets from third party suppliers and reduce production costs.
In September 2015, the first of four High Pressure Grinding Rollers (HPGR) was delivered to Stoilensky to be installed as part of the upgrade of two sections of the beneficiation plant with a production capacity of about 8 million tonnes of iron ore each. Implementation of the High Pressure Grinding Roller technology, which is new to the Russian market, began in February 2015 and will enable a 10% increase in the production capacity of each of the upgraded sections.
Construction of a pelletising plant began at Stoilensky. The new plant will supply iron ore pellets to the Group’s key production site in Lipetsk, fully meeting the needs of its blast furnace operations. Plant opening is scheduled for mid-2016.