NLMK to build pelletizing plant at Stoilensky

Saturday, 19 Feb 2011

NLMK has approved the construction of a pelletizing plant at Stoilensky, its fully owned subsidiary with a capacity of 6 million tonnes of iron ore pellets per year.

The project will encompass the construction of the pelletizing plant and the development of a number of infrastructure facilities to supply raw materials for the production of high grade pellets. A 30% increase in iron ore output as compared to 2011 level at Stoilensky operating mine is planned to ensure the required raw material supplies for the pelletizing plant.

The project is part of the Group’s strategy targeted at strengthening vertical integration and is being executed as part of the third stage of NLMK Technical Upgrade Program. Construction is expected to be completed in 2014. The plant will be able to fully cover the Company pellet requirements as early as 2015, even considering the launch of the 3.4 million tonne Blast Furnace 7 at Novolipetsk, the main production facility of the Group located in Lipetsk.

The project will be jointly executed with Siemens VAI/Outotec, a German-Finnish consortium, responsible for supplying the required equipment and technologies, as well as rendering other construction-related services.

Investments into Stoilensky operating and infrastructure facilities over 2011 to 2014 will total some RUB 39 billion.

Starting from 2015, Stoilensky average annual output of saleable iron ore will be as follows:
1. Sintering ore - 2 million tonnes
2. Iron ore concentrate - 11 million tonnes
3. Iron ore pellets - 6 million tonnes
Ensuring NLMK 100% self sufficiency in iron ore raw materials.

During the Stoilensky pellet plant construction, supplies of iron ore pellets to Novolipetsk will be made under long term contracts between NLMK and Metalloinvest Holding.

Tags:Siemens VAI, Outotec,investment, iron ore concentrate, long term agreement, Metalloinvest Holding,