14 April 2015 Stoilensky

NLMK Group’s Stoilensky beneficiation plant increases productivity

NLMK Group (“NLMK” or “the Group”), the largest steel producer in Russia and a leading international steel company, has begun implementation of HPGR technology at its iron ore beneficiation plant at Stoilensky, an open pit iron ore mine. Implementation of this technology, which is new for Russia, enables a 10% increase in the production capacity of each modernized section of the plant.

High pressure grinding rolls (HPGR) are being installed to complement the existing cone crushers and ball grinders. The use of HPGR technology enables reduced consumption of electric energy, water and other materials in the beneficiation process per tonne of output; as well as increasing the fineness of crushed ore, reducing maintenance costs and increasing the volume of processed ore.

During the first stage of the Stoilensky modernization project, four high pressure grinding rolls will be installed at beneficiation plant sections 1 and 4. Modernization of section 1 will be completed in 2015; with section 4 modernization scheduled for completion in Q1 2016. After stage one is complete, the company will review possible implementation of similar equipment at the remaining sections 2 and 3.

This technology, coupled with other capacity upgrade projects and operational efficiency initiatives, will boost Stoilensky’s iron ore concentrate production from the current 15 million tonnes per year to 17.2 million tonnes per year by 2017. This increase in captive low cost material will feed the forthcoming 6 million tonnes per year pelletizing plant scheduled for launch in 2016.

Konstantin Lagutin, NLMK Group Vice President for Investment Projects, said: “When revising the development programme for our mining divisions, we decided to replace the capital-intensive construction a new section 5 of the beneficiation plant with a set of upgrades and other initiatives that will allow us to increase our capacity by 2.2 million tonnes of concentrate for just a fraction of the initially planned capex . One such measure is the implementation of high-pressure grinding, a technology which is new to Russia but which has been widely applied around the world. Investment into the step-by-step implementation of four grinders for sections 1 and 4 will total approximately $50 million.”
For more information about the delivery of Strategy 2017 at Stoilensky, please review this presentation.

About Stoilensky

Stoilensky (part of NLMK Group) is one of the three leading Russian iron ore-mining companies. The company accounts for over 15% of Russia’s total iron ore production. In 2014, Stoilensky produced a record 14.9 million tonnes of iron ore concentrate; and 1.6 million tonnes of sinter ore.

Stoilensky is unique in combining high efficiency with low production costs and the very highest production quality. Its main products are iron ore concentrate and sinter ore. Its commercial reserves are around 6 billion tonnes.

NLMK Group’s Strategy 2017, announced in February 2014, is focused on unlocking the internal potential of the Group’s businesses by boosting operational and process efficiency and increasing self-sufficiency in its main raw materials. The strategy is aimed at developing a world-class resource base for the Group by increasing self-sufficiency in iron ore with a flexible feed structure to 100% (pellets, sinter, sinter ore) and reducing consumption of valuable resources.

Construction of a pelletizing plant is currently under way at Stoilensky. It will comprise the biggest convetoy-type roasting machine in Europe with a capacity of approximately 6 million tonnes of iron ore pellets per year. The programme will also involve increasing production of iron ore concentrate through streamlining operations.

About NLMK Group

NLMK Group is the largest steelmaker in Russia and one of the most efficient in the world. NLMK’s high-quality metal products are used in various industries, from construction and engineering to the manufacture of power-generating equipment and offshore wind turbines.

NLMK's production assets are located in Russia, Europe, and the United States. The Company’s liquid steel production capacity is over 17 million tonnes per year, of which about 16 million tonnes are produced in Russia.

NLMK has the most competitive cash cost among global manufacturers; and one of the highest profitability levels in the sector. The company generated $10.4 billion in revenue; $2,4 billion in EBITDA; and a net profit of $845 million in 2014.

NLMK’s ordinary shares are traded on the Moscow Stock Exchange (ticker symbol: NLMK), and its global depositary shares are traded on the London Stock Exchange (ticker symbol: NLMK:LI).


Maria Simonova

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