Metalloinvest and Industrial and Steelmaking Holding sign long-term iron ore concentrate supply agreement

Moscow, Russia - 12 May 2016 - Metalloinvest has signed a RUB 6.8 bn agreement to ship iron ore concentrate of the highest grade with iron content of up to 69.5% to Industrial and Steelmaking Holding (ISH). Prices take into account changes in market conditions.

In 2016, Metalloinvest started sales of high grade products with a low silica content and increased iron content. These product characteristics ensure an increase in output capacity at steel furnaces, lower energy costs and costs of electrodes for electric arc furnaces, and an improved efficiency of blast-furnace production due to a higher Fe-content in the furnace charge and lower slag ratio.

According to the agreement, shipments of high-quality concentrate from Lebedinsky GOK (part of Metalloinvest) to Tulachermet (part of ISH) are executed from 1 May 2016 to 31 March 2018. The agreement is another step in a series of Metalloinvest's long-term agreements with Russian steel producers to supply iron ore products.

Andrey Varichev, CEO of Management Company METALLOINVEST, commented: 'Metalloinvest pays particular attention to the quality of its products. Our long-standing relationships with customers from around the world are a confirmation of our reputation as a reliable supplier of high-quality iron ore, metallised and steel products'.

Metalloinvest is able to deliver higher quality products to steelmakers as a result of renovation works at Lebedinsky GOK's benefication plant. The new equipment installed at the plant has enabled the enterprise to increase output of high-grade iron ore for internal needs, as well as produce additional types of products for sale.


 

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For more information, please contact the Investor Relations Department:

Artem Lavrischev
Head of Investor Relations

E: ir@metalloinvest.com

T: +7 (495) 981-55-55



 

_{Metalloinvest is a leading global iron ore and HBI producer and supplier, and one of the regional high quality steel producers. The Company has the world's second largest measured iron ore reserve base under its operation with the key-note iron ore production cost efficiency.}

_{Metalloinvest is wholly owned by USM Holdings. Alisher Usmanov is the major beneficiary of USM Holdings (48%), with other major beneficiaries being the companies of Vladimir Skoch (30%) and Farhad Moshiri (10%).}