Magnitogorsk Iron and Steel Works (MMK) successfully passed its second supervisory examination of energy management for compliance with the international standard ISO 50001, the certificate of conformity to which was first obtained in 2016.

The audit was conducted by auditors of the certification body TUV Thuringen e.V. (Germany). The audit confirmed that the energy management system in the Company fully complies with the standard; no inconsistencies and deviations were found. In 2019, there are plans to conduct a recertification audit of the plant's energy management system.

At MMK, work on energy saving and increasing energy efficiency of production processes continues and is reaching a new level. In May 2018, the plant was awarded the international award for 'Outstanding Achievements in the Field of Energy Management 2018' at Clean Energy Ministerial, the Inter-Ministerial Conference on Clean Energy.

Last year alone, the total economic effect of the implementation of projects to improve the energy efficiency of production processes at MMK amounted to around 1 billion rubles. This effect was obtained through the use of a new approach to the system of calculation and monitoring of performance indicators of the main energy management units (MEM), which allows to sel ect and implement the optimal modes of operation of power equipment of the MEM workshops, as well as through the implementation of energy efficient projects. Thus, the degree of use of secondary energy resources - blast furnace and coke oven gas - by MEM shops for nine months of 2018 increased by 1.2% and 3.1%, respectively, compared to the same period in 2017, which led to a reduction in consumption of purchased natural gas.

Work to improve energy efficiency is carried out at all stages of the industrial site of the plant, as well as in the enterprises of the group of companies MMK. As in previous years, the Company's energy saving and energy efficiency activities were carried out in several ways. One of them is the elaboration and implementation of ideas in the field of energy saving. In the first nine months of 2018, 452 energy-efficient ideas were submitted and 79 projects were successfully implemented. The planned annual effect of their implementation is about 70 million rubles.

Another important area was the implementation of low-budget and high-efficiency projects in the field of energy efficiency with a short payback period. In 2018, nine such projects were implemented with a total economic effect of 186 million rubles.

Also this year, the fulfilment of obligations under contracts for the provision of energy services continued. Here we are talking about the replacement of ceiling lighting in the rolling shops and the introduction of an automated control complex which drives the smoke exhauster of the recycling of converter gases in the oxygen-converter shop/plant The energy service contract for the installation of frequency control on the pumping units of raw water of the Central Power Station was implemented. Contracts for the next phase are currently being developed.

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, fr om 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 2017, the company produced 12.9 million tonnes of crude steel and 11.6 million tonnes of commercial steel products. MMK Group had sales in 2017 of USD 7,546 million and EBITDA of USD 2,032 million.

Investor contacts:
Andrey Serov
tel.: +7 (3519) 24-52-97
E-mail: serov.ae@mmk.ru

Media contacts:
Dmitry Kuchumov
tel.: +7 (499) 238-26-13
E-mail: kuchumov.do@mmk.ru

Dmitry Bulin
tel.: +7 (499) 238-26-13
E-mail: bulin.dn@mmk.ru