OJSC Magnitogorsk Iron and Steel Works ("MMK") today announces that it has signed a contract with Metalloinvest regarding supplies of hot-briquetted iron (HBI) to MMK. The contract was signed by MMK CEO Pavel Shilyaev and Metalloinvest CEO Andrey Varichev at the 22nd MetalExpo'2016 International Industrial Exhibition in Moscow.

The contract covers a period of one year. During this period, MMK will purchase 200,000 tonnes of HBI from Metalloinvest. Under the contract, pricing will be determined by a formula based on market indicators including domestic and global prices for metallurgical raw materials.
This contract will help MMK to partly substitute metal scrap with alternative raw materials inputs.
Pavel Shilyaev, CEO of MMK, said: "Metalloinvest as a company and as a brand is closely associated with success in the mining business by leading iron ore and steel players, and with strong management and effective modernisation of steel production. By signing this contract today, we are strengthening the long-term and mutually beneficial relationship between our companies."
Andrey Varichev, CEO of Management Company Metalloinvest, said: “HBI has firmly established itself as an effective addition to scrap for the production of high-quality grades of steel. It is very significant for us that key Russian consumers, such as MMK, recognise the advantages of this premium product."
About MMK
MMK is one of the world's largest steel producers and a leading Russian metals company. The company's operations in Russia include a large steel-producing complex encompassing the entire production chain, from the preparation of iron ore to downstream processing of rolled steel. MMK turns out a broad range of steel products with a predominant share of high-value-added products. In 2015, the company produced 12.2 million tonnes of crude steel and 11.2 million tonnes of commercial steel products. MMK Group had sales in 2015 of USD 5,839 million and EBITDA of USD 1,668 million.

About Metalloinvest
Metalloinvest is a leading global iron ore and merchant HBI producer and supplier, and one of the regional producers of high-quality steel. The Company has the world's second-largest measured iron ore reserve base and is one of the lowest-cost iron ore producers. Metalloinvest is wholly owned by USM Holdings. Alisher Usmanov is the major beneficiary of USM Holdings (49%), with other major beneficiaries being the companies of Vladimir Skoch (30%) and Farhad Moshiri (10%).