Stoilensky, the main resource base for NLMK Group, an international steel company, has begun the mining of quartzites on the southern bank of the Stoilensky deposit. The development of this site and the overall expansion of mining operations will enable a 10% increase in production output year-on-year to 38 million tonnes in 2018 and will cover NLMK Group’s growing needs in iron ore.
The launch of the pelletizing plant at Stoilensky and projects aimed at growing steel production at the Lipetsk site require more quartzites, which are used as feedstock for the beneficiation plant. Stoilensky plans to supply more than 1.5 million tonnes of quartzites and 750,000 tonnes of rich ore from the southern deposit by the end of 2018.
Sergey Napolskikh, General Director, Stoilenksy, said:
“Previously, only small amounts of rich ore were being mined at the southern bank. In line with the mine development plan, we dewatered the deposit, removed power transmission lines from the mining area and stepped up stripping operations in 2016 - 2017. This enabled us to build a new loading point and proceed to full-scale mining. The mine development project includes a reconstruction of the mine logistics scheme. The new scheme will enable a reduction in raw material delivery costs and ensure the economic efficiency of quartzite mining.”
The growth of mining operations will lead to an increase in concentrate production: Stoilensky plans to produce 17.4 million tonnes of concentrate in 2018 (+ 8.5% year-on-year). Almost 7 million tonnes of these will be used for the production of iron ore pellets at the pelletizing plant; and 10.4 million tonnes will be supplied to NLMK Lipetsk for further sintering.
Stoilensky (part of NLMK Group) is among TOP 3 iron ore mining companies in Russia. The company accounts for over 18% of Russia’s total iron ore production.
Stoilensky is unique in combining high-efficiency and product quality. Its main products include iron ore concentrate, sinter ore and iron ore pellets. Its commercial reserves are over 6 billion tonnes.
For more information on Stoilensky, please visit sgok.nlmk.com
About NLMK Group
NLMK Group is the largest steelmaker in Russia and one of the most efficient in the world.
NLMK Group’s steel products are used in various industries, from construction and machine building to the manufacturing of power-generation equipment and offshore windmills.
NLMK operates production facilities in Russia, Europe and the United States. The Company’s steel production capacity exceeds 17 million tonnes per year.
NLMK has the most competitive cash cost among global manufacturers and one of the highest profitability levels in the industry. In 2017, the Company generated $10.065 billion in revenue and $2.655 billion in EBITDA. As of 31 December 2017, Net debt/EBITDA stood at 0.35х. The company has investment grade credit ratings from S&P, Moody’s and Fitch.
NLMK’s ordinary shares with a 16% free-float are traded on the Moscow Stock Exchange (ticker "NLMK") and its global depositary shares are traded on the London Stock Exchange (ticker "NLMK:LI"). The share capital of the Company is divided into 5,993,227,240 shares with a par value of RUB1. For more details on NLMK shareholder capital, please follow the link.
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