Severstal will build a complex for the production of iron ore pellets on the territory of the Cherepovets Metallurgical Combine (CherMK, a key asset of Severstal). This was stated by the General director of the Severstal Russian Steel division and resource assets Evgeny Vinogradov during a meeting of the investment committee of the Vologda Region, which was held on October 17 under the chairmanship of the governor of the region Oleg Kuvshinnikov, the company said in a statement.
The complex with a capacity of 10 million tons of iron ore pellets per year and a cost of about 97 billion rubles, is implemented in compliance with environmental standards and using the best available technologies. The commissioning of the new production complex will allow Severstal to realize the environmental goals set for the company through technological changes in the production process – both in terms of reducing emissions of pollutants into the atmosphere and in the field of decarbonization.
In addition, the new production facility will be equipped with a modern exhaust gas desulfurization system. For efficient and high-quality operation of gas cleaning equipment, a special automatic control system with data transmission to government agencies is provided.
The implementation of the project will also have a positive social effect. More than 300 jobs will be created at the new complex, the report says.
"<...> After the launch of the complex, which is scheduled for 2026, 90% of the blast furnace charge of CherMK will be iron ore pellets, 10% – other iron-containing components. As a result, the complex for the production of iron ore pellets will reduce solid fuel consumption by 25% and increase the productivity of our blast furnaces by 9%. Thus, we will be able to reduce the cost of cast iron and increase its production volumes. And the most important thing is to get closer to the implementation of our sustainable development goals, including the goal of reducing CO2 emissions by 10% in 2030 from the actual level of 2020, and fulfilling the tasks outlined by the President of the Russian Federation within the framework of the national Ecology project and its federal component Clean Air. As a result of the launch of the new complex and decommissioning of the old equipment, emissions of pollutants will decrease by 133 thousand tons per year (more than 45% of the base year 2017). The reduction of greenhouse gas emissions will amount to more than 2 million tons per year," explained Severstal CEO Alexander Shevelev, whose words are quoted in the message.
The raw material for the production of pellets will be the iron ore of the Yakovlevsky Mining and Processing Plant and the concentrate of the Olenegorsky Mining and Processing Plant (part of the Severstal company), A.Shevelev explained.
The main designer of the complex is Severstal-Project LLC. The main technological equipment will be supplied by a company from China. Additional equipment and construction materials worth about 20 billion rubles are planned to be purchased from domestic companies with a priority of loading enterprises of the Vologda region. The construction of the new workshop is expected to begin in January 2024. Currently, the investment project is under development of engineering and basic design solutions.
Severstal is a vertically integrated mining and metallurgical company that creates new products and integrated solutions from steel together with customers and partners. The company's production assets are concentrated in Russia. The shares are traded on the Moscow Stock Exchange (ticker CHMF). In 2022, 10.7 million tons of steel were produced.
The Third All-Russian Conference "NON-FINANCIAL REPORTING" will be held in Moscow on November 29, 2023. The conference is organized by the AK&M News Agency.
During the conference, participants will continue to discuss issues related to the formation of an environmental and socio-economic reporting system in Russia and in the EAEU space, as well as the platformization of ESG process management and control systems at the corporate and state levels.
