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23 March 2011

NLMK increases funding for environmental projects

In 2010 NLMK allocated RUR4.14 billion (almost RUR100 million up year-on-year) towards environmental protection projects at its main production site in Lipetsk, a record amount since the launch of the Company’s Technical Upgrade Program and the highest investment into environmental technologies among Russian steelmakers.

Implementation of the best available technologies (BAT) has resulted in a significantly reduced environmental impact from BOF operations, with average emissions falling by 20% whilst the site saw steel production grow by 9.2%. Emissions reductions were achieved by reconstructing the BOF off-gas ducts with a secondary emission collecting and cleaning system as well as by improving the BOF smelting process. New slag cooling technology has halved atmospheric emissions, greatly improving the environment and ecology of local communities.

Last year NLMK launched a new large scale project at its Sinter Plant, involving the reconstruction of the central aspiration system for two sintering machines. This RUR1.2 billion worth project will reduce the machines’ anthropogenic impact 1.4-fold within one year.

Over 2010 the Company continued introducing state-of-the-art environmental and resource-saving technologies at its new facilities under construction. For instance, the new Heat & Power Plant for BF-7 will allow a complete recovery of metallurgical gases for power generation. The furnace itself will be equipped with the most environmentally-friendly equipment of its generation.

Overall, environmental measures implemented at Novolipetsk have allowed a decrease in gross emissions by 1,400 tonnes, as well as a reduction in previously accumulated industrial waste of over 500,000 tonnes. In addition the measures have succeeded in bringing down fresh water intake from the Voronezh River by 11.1 million m3. Moreover, in 2010 Novolipetsk maintained zero discharge of industrial effluents, the latter having been discontinued in 2009 through a large-scale refurbishment of the process water supply system.

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Since the launch of its Technical Upgrade Program in 2000, NLMK has allocated over RUR17 billion to environmental protection programs. Atmospheric impact has been cut by 22% over the last 10 years. As a result, in 2005 the city of Lipetsk was excluded from the list of Russia’s cities with the highest air pollution drawn up based on Roshydromet monitoring. In 2010 NLMK became one of the winners of a National Environmental Award established by the Vernadsky Foundation and the RF State Duma with the assistance of the Federation Council and the Russian Government, as well as the winner in the category «Socially conscious attitude to the environment» of a Russian companies rating made by Political and Economic Communication Agency. NLMK’s Environmental Management System has been certified for compliance with international standard ISO 14001-2004. In 2010 the Company successfully passed the annual compliance audit conducted by certification authority TUV Rheinland Cert GmbH (Germany).