MMK to Initiate Sinter Plant Construction

ММК signs contract with Sinosteel for supply of sinter plant equipment

2-11-2016, Magnitogorsk

OJSC Magnitogorsk Iron and Steel Works ("MMK") announces that it has started construction of a new sinter plant as part of its long-term development strategy announced in November 2015 to increase efficiency and reduce costs.

Commissioning of the new sinter plant will provide MMK's blast furnaces with high-quality sinter produced using state-of-the-art energy-saving and environmentally safe technologies. The new plant will produce sinter with an iron content of 57.95%.

The sinter plant will have annual capacity of 5,5 mln tonnes, allowing MMK to decommission outdated equipment at sinter plant №4 (4.2 mln tons per year capacity).

The new plant will help MMK process sinter more efficiently, reduce the production costs of pig iron by ensuring output of suitable materials, and fully unlock the potential of MMK's blast furnaces.

The new project will significantly reduce MMK's environmental impact, with emissions of dust and sulphur dioxide expected to decline by 490 tonnes and 3,280 tonnes per year, respectively. Discharge of suspended particles into the water supply system will be reduced by 600 tonnes per year.

The contract value of the equipment is RUB 6.7 bln. Overall MMK will invest around RUB 22 bln into the sinter plant, including building and installation works. The new facility is scheduled for commissioning in 2019.

Notes for editors:

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.

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