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Novolipetsk Steel Placed An Order For 6Mtpa Pelletizing Plant
= At its fully owned subsidiary Stoilensky, starting full operation in 2015 =
Russia's major steel producer Novolipetsk Steel (NLMK) announced on Aug 22 that its wholly owned subsidiary and iron ore company Stoilensky has signed a contract with the Siemens VAI/Outotec consortium for the design and supply of required equipment and technologies, as well as the rendering of other services related to the construction of a Pelletizing Plant at Stoilensky with a capacity of 6Mtpa of iron ore pellets. The EUR280 million contract covers the supply of main process equipment. Construction is expected to be completed in 2014 and the plant will be able to fully cover the company's pellet requirements as early as 2015.

The project is part of the group's strategy targeted at strengthening vertical integration and is being executed as part of Stage 3 of NLMK's Technical Upgrade Program. It is also in preparation to the launch of the 3.4Mtpa Blast Furnace No.7 at Novolipetsk, the main production facility of the group located in Lipetsk. The company is aiming at 100% self-sufficiency in iron ore raw materials.

During the Stoilensky's Pelletizing Plant construction period of 2011 - 2014, supplies of iron ore pellet to NLMK will be made under long-term contracts between NLMK and Metalloinvest Holding, and pellets to NLMK will be delivered from the assets of Metalloinvest which are Lebedinsky mining and processing plants (LGOK) and Mikhailovsky mining and processing plants (MGOK). During the period, pellets supply volume will be a total of 21.6 million tons, 5.4 million tons yearly.

Stoilensky is currently expanding its pit and growing ore processing and beneficiation capacities. Section IV of the Beneficiation Plant with 4Mtpa of concentrate became fully operational in May 2011 adding an incremental 2Mtpa iron ore capacity. As a result, Stoilensky's iron ore concentrate capacity will total 14Mtpa of iron ore concentrate and 1.7Mtpa of sinter ore by this year's end. Construction of the crushing facility and Section V of the Beneficiation Plant (of additional 4Mtpa of iron ore concentrate) will be completed by 2014.

Novolipetsk Steel is one of the largest steelmakers in Russia, operating in Lipetsk city located 500km southeast of Moscow. The group includes VIZ Stal (EAF steel mill), steel mini-mill Beta Steel (U.S.) and iron ore mining company Stoilensky GOK (SGOK) located in Stary Oskol, Belgorod Region near Ukrainian boarder. In 2010, NLMK produced 11.5 million tonnes of crude steel.

Metalloinvest Holding owns Ural Steel (integrated steelworks), Oskol Electrometallurgy Plant (EAF steel mill), Moldova Metallurgical Plant (MMP), Oskol Trading Metallurgical Corp and Tulachermet. It is one of the largest DRI producer worldwide.
last modified : Thu 01 Sep, 2011 [10:31]
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