Stoilensky (an NLMK Group company, core asset of NLMK Mining Division) has embarked on the implementation of a predictive management system for ore crushing and beneficiation processes. In the long run, this will enable an increase in the efficiency of the beneficiation equipment to 400,000 tonnes of concentrate per year.

Twenty units of the beneficiation plant operate to obtain iron ore concentrate from ore. An information management system, one of its kind in the Russian mining sector, gathers data from control and measuring devices on the current modes of these units in real time, compares it against historical data accumulated for the previous period, and gives out instructions on how to adjust the equipment modes. Settings of the predictive system itself are updated to incorporate new statistical data.

Such adjustments enable an increase in equipment productivity and the quality of the finished product. Industrial testing of the system has commenced at Section IV of Stoilensky’s beneficiation plant.

Konstantin Lagutin, NLMK Group’s Vice President for Investment Projects, said:

“The key goal of implementing such an intelligent system is to strike and maintain a point of technical and economic balance, an optimal mode for equipment operations, whereby output of high-quality concentrate is maximized, and resource consumption and losses are minimized. By using this system, we are able to extract 1.5-2% more pure Fe from iron ore, adding over 100,000 tonnes of iron ore concentrate per year for just one of the beneficiation sections. We are now beginning to roll out the system to the remaining three sections.”

This and other projects aimed at upgrading production and boosting operational efficiency at Stoilensky will enable an increase in iron ore concentrate production capacity from its current 15.4 million tonnes to 17.4 million tonnes per year by 2018.

For more information, please see the video(In Russian only).

About Stoilensky

Stoilensky (an NLMKGroup company) is one of the three leading Russian iron ore-mining companies. The company accounts for over 18% of Russia’s total iron ore production.

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

In November 2016, NLMK Group successfully completed the construction of a pelletizing plant at Stoilensky, the key investment project of its ‘Strategy 2017’. The plant has a production capacity of 6 million tonnes of pellets per year. The launch of the new plant has enabled NLMK Group to significantly reduce its costs of iron ore used in blast furnace operations at NLMK Lipetsk, resulting in a lower cash cost of NLMK steel.

For more information on Stoilensky, please visit www.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 high-quality 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 FY2016, the Company generated $7.64 billion in revenue and $1.94 billion in EBITDA. As of 31 December 2016, Net debt/EBITDA stood at 0.36õ. The company has an investment grade credit rating from S&P 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"). For more details on shareholder structure, please follow the link.

NLMK Group received the Steel Industry Leadership Award at the prestigious 2016 Platts Global Metals Awards held by S&P Global Platts, a leading international industry analytical periodical.