Metalloinvest Finance Designated Activity Company / Miscellaneous - High Priority
14-Jul-2017 / 17:45 CET/CEST
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Metalloinvest launches one of largest hot briquetted iron production facility in world
Moscow, Russia - 14 July 2017 - Metalloinvest has launched its third hot briquetted iron production facility (HBI-3 Plant) at Lebedinsky GOK in Gubkin, Belgorod region. The plant is the largest HBI production facility in Russia and one of the biggest in the world.
Participants in the official launch ceremony for HBI-3 Plant included: Vladimir Putin, President of the Russian Federation; Denis Manturov, Minister of Industry and Trade of the Russian Federation; Alexander Beglov, Plenipotentiary Representative of the President of the Russian Federation in the Central Federal District; Evgeny Savchenko, Governor of the Belgorod region; Alisher Usmanov, founder of USM Holdings; Ivan Streshinsky, Chairman of the Board of Directors of Management Company Metalloinvest; Andrey Varichev, CEO of Management Company Metalloinvest; and Oleg Mikhailov, Managing Director of Lebedinsky GOK.
Ivan Streshinsky commented: "HBI-3 Plant will increase Metalloinvest's efficiency and strengthen the Company's position on the global raw materials market. The launch of the plant is the key investment project in Metalloinvest's strategy, which envisions increasing the Company's output of products with high added value."
Andrey Varichev noted: "HBI has proven itself as an effective addition to scrap metal for the production of high-quality steel grades. We are confident that demand for HBI will continue to grow not only in Russia but also abroad, and we are ready to meet global demand for this premium raw material. An important competitive advantage of HBI-3 Plant is its minimal environmental impact. The use of new technological solutions is enabling the Company to minimise the plant's pollutant emissions."
Investment in HBI-3 Plant has amounted to approximately USD 660 million and over 400 highly-skilled jobs have been created at the plant.
HBI-3 Plant has a design capacity of 1.8 million tonnes of HBI per year, which will increase Metalloinvest's HBI annual production capabilities to 4.5 million tonnes. The plant will reinforce Metalloinvest's leading position on the global merchant HBI market, of which the Company currently has a share of over 40%.
In order to increase the quality and quantity of raw materials required by HBI-3 Plant, the Company conducted a large-scale modernisation of the relevant production facilities(the pelletisation plant and beneficiation plant), which will ensure the increased production of higher-quality concentrate and pellets.
The process of direct reduction of iron used in HBI production is the most environmentally-friendly method of extracting iron from iron ore. It does not create the emissions associated with the production of coke, sintering ore and pellets, or solid waste in the form of slag.
By decree of the government of the Russian Federation, the construction of HBI-3 Plant was included in the list of initiatives for the Year of the Environment, as a project making use of the best available technologies.
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For more information, please contact:
Director of Investor Relations and Corporate Ratings
E: [email protected]
T: +7 (495) 981-55-55
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%).
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