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6 March 2006

In 2005 NLMK implemented more than 30 environmental projects in Lipetsk

In 2005, implementation of major environmental projects on the main production site of NLMK in Lipetsk resulted in reduction of its total atmospheric emissions by more than 14 thousand tonnes as compared to the previous year. Total financing of environment protection projects amounted to nearly RUR 1.3 billion.

Introduction of resource-saving and low waste technologies during the implementation of Stage I (2000-2005) of the Technical Upgrade Programme allowed the Company to minimize the impact of its activities on the environment. Within a year period the Company completed revamping of Coke Battery No.1, aspiration systems of Blast Furnace No.5 casthouse and the Sinter Plant. A modern industrial waste incineration facility was installed. Environmental facilities of the Company’s principal production plants underwent a major overhaul. Implementation of new waste processing technologies reduced total volume of accumulated waste by more than 450 thousand tonnes.

Last year the Company launched a project aimed at a large-scale upgrading of industrial water supply system, and currently continues modernization of integrated sewage treatment facilities of NLMK and of the city of Lipetsk.

In 2005 NLMK successfully passed an independent re-certification audit of its Environmental Management System for the compliance with the international standard ISO-14001 of 2004 version. Last year NLMK obtained a license from the Russian Federal Agency for Hydrometeorology and Environmental Monitoring (“Roshydromet”), which allows the Company to monitor the industrial impact on the environment.

In 2005 NLMK adopted the core strategic document in environment protection: Environmental Policy of NLMK that declares the Company's principal objective, which is to reduce negative impact of production activities on the environment and to provide favorable ambient conditions for the residents of Lipetsk. The document is available on the Company’s web-site

Since the Technical Upgrade Programme was launched, environmental expenditures of the Company have been increased more than tenfold. In 2000 more than RUR 100 million were allocated to environment protection programmes, in 2004 this type of investments increased to RUR 747 million and in 2005 the sum was nearly RUR 1.3 billion. Due to an increase of investments, the total atmospheric emissions of NLMK’s production facilities have been reduced by more than 10 per cent as compare to 2000. River water intake and purified effluents discharge into the Voronezh River have decreased by 18 percent.