9 November 2016

Construction of Stoilensky's pelletizing plant recognized as Event of the Year in Russian metals and mining

The key investment project of NLMK Group's Strategy 2017 -, the construction of a pelletizing plant at Stoilensky, has been recognized as the 2016 Event of the Year in the Russian steel industry. Experts announced their findings at the Metal-Expo'2016 international exhibition, which is taking place in Moscow on 8-11 November. Konstantin Lagutin, NLMK Group's VP for Investment Projects received the winner's diploma at the award ceremony.

The Main Event in the Russian Steel Industry’2016 award aims to support and promote innovative projects in the sector. The most important completed investment projects in the industry are nominated for the award. Heads of the Russian Ministry of Industry and Trade, unions and associations and other members of the organizing committee of Metal-Expo voted to recognize the construction of Stoilensky's pelletizing plant as the most significant achievement in the metals and mining industry for its impact on the Russian economy.

Konstantin Lagutin, NLMK Group's VP for Investment Projects said, “The construction of the pelletizing plant, which has a design capacity of 6 million tonnes of pellets per year, is an essential part of NLMK Group's development strategy. This strategic project will enable NLMK Group to substitute expensive pellets purchased from external vendors with inexpensive captive pellets, fully meeting the demand of Novolipetsk blast furnace operations in iron ore. This will lower the cost of pig iron whilst increasing the efficiency of the entire production chain”.

It took two years to build the high-tech facility at Stoilensky (Stary Oskol, Belgorod region). The active phase of the project, which is the largest in its region, began in 2014 and required total investment of around $680 million (34 billion rubles). The new plant will enable NLMK Group to minimize its dependence on third-party suppliers of iron ore pellets and significantly reduce the cost of raw materials for Lipetsk blast furnace operations. The positive impact of the entire project on EBITDA exceeds $150 million at current prices.

The plant’s high performance is ensured by the largest annealing facility in Europe, which produces 780 tonnes of pellets per hour. Stoilensky's plant is the first in the Russian metals and mining industry to use high-efficiency hyperbaric filters to remove fluid during ore processing. The plant is equipped with an efficient gas treatment system that captures 98% of emissions and returns dust to the production process.

The project created 270 new jobs. The new plant will contribute an additional 4 billion rubles in taxes to the local, regional and federal budgets every year.

It is expected that the plant will achieve its design capacity in 2017.