NLMK Group, a global steel company, has embarked on the construction of an additional beneficiation section at Stoilensky. Three new grinding lines (vertical mills) will enable the company to increase its concentrate output from 17.5 mtpa to 20 mtpa and to increase its ore processing capacity from 37 mt to 42 mt by 2020, thus increasing the production of iron ore raw materials for NLMK by 14%.
Project investment, including the development of the mine and Stoilensky transport infrastructure upgrades, will exceed RUB 15 bn. The company plans to complete the construction in 2020.
Konstantin Lagutin, NLMK Group Vice President, Investment Projects, said:
“Continuous improvement of production processes is among NLMK Group’s strategic priorities. Vertical mills are a breakthrough technology in raw material processing. They are known for low energy and grinding body consumption rates, high reliability, and a smaller scope of construction works as compared to traditional ball mills. The benefits of using such mills at Stoilensky will be two-fold: we will boost production volumes and cut costs. Moreover, Fe content in the ore will increase to 68%.”
The additional beneficiation section project involves the construction of a separate building equipped with three vertical mills. The new section will be integrated into a single process chain with the three sections of the Beneficiation Plant. Having passed the medium and fine crushing stages and the high-pressure grinding rolls, ore will be fed into the three vertical mills for further crushing and beneficiation, before being supplied to the Pelletizing Plant for the production of pellets or being shipped to NLMK Lipetsk.
About NLMK Group
NLMK Group is the largest steelmaker in Russia and one of the most efficient in the world.
NLMK Group’s 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 H1 2018, the Company generated $5.9 billion in revenue and $1.7 billion in EBITDA. As of 30 June 2018, Net debt/EBITDA stood at 0.31õ. The company has investment grade credit ratings from S&P, Moody’s, Fitch, and RAEX (Expert RA).
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"). The share capital of the Company is divided into 5,993,227,240 shares with a par value of RUB1. For more details on NLMK shareholder capital, please follow the link.
The jury of the prestigious S&P Platts Global Metals Awards held by S&P Global Platts, a leading international industry analytical periodical, announced NLMK Group as winner of the Industry Leadership Awards – Steel in 2016, and awarded it the CEO of the Year in 2018.
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