Metalloinvest and the government of Belgorod region have signed an agreement around attracting investment for green metallurgy projects to help drive the sustainable socio-economic development of the region. The document was signed by Nazim Efendiev, CEO of Management Company Metalloinvest, and Vyacheslav Gladkov, acting Governor of the Belgorod region, at the St. Petersburg International Economic Forum.
As part of the agreement, Metalloinvest will invest over RUB 160 bn in the development of Lebedinsky GOK and Alexey Ugarov OEMK between 2021 and 2026.
"We are planning a record investment into the development of green metallurgy technologies. Lebedinsky GOK and OEMK will boast modernised and newly created facilities which will enable us to meet domestic and international demand for high quality iron ore and steel while also facilitating carbon footprint reduction," Nazim Efendiev commented.
All investment projects will be implemented using the best available technologies with minimum environmental impact. More than 1,000 high-qualified jobs will be created.
"The signing of this agreement is important not only in terms of volumes, investments, jobs and taxes. This is a completely different approach to manufactured products. In the modern world, this is called "green metallurgy". That is, the implementation of those projects that are as careful as possible to the ecology of the region and form the so-called "green footprint". And it is very important for me that companies that operate in the Belgorod Region and enter international markets understand these global trends and form a "green footprint" in the industry. Metallurgical production is very environmentally challenging and the requirements are very high. And the agreements that we signed today show that this is one of the most modern technologies in the world of metallurgy," Vyacheslav Gladkov said.
The agreement foresees the implementation of six investment projects at Metalloinvest's enterprises in the Belgorod region:
- construction of the technological section of the beneficiation plant at Lebedinsky GOK to increase production of high-quality iron ore concentrate;
- construction of a flotation facility at Lebedinsky GOK for the beneficiation of iron ore concentrate;
- construction of Blast Furnace #5 at Lebedinsky GOK for premium pellet production;
- purchase of new equipment as part of the modernisation of the mining transportation division at Lebedinsky GOK;
- construction of a new tailings dump at Lebedinsky GOK to enable the storage of tailings through modern environmentally efficient technology, as well as significant dust reduction;
- comprehensive modernization of DRI Plant #3, construction of Electric Arc Furnace #5 and Integrated Steel Processing Unit #4 at Alexey Ugarov OEMK to enable a reduction in production costs and environmental impact, and improve steel quality.
The Government of the Belgorod region will assist Metalloinvest's investment projects, including supporting efforts to raise funds for the construction and modernisation of external energy, transport, engineering and social infrastructure facilities, the statement notes.
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Metalloinvest is a leading producer and supplier of iron ore products and direct reduced iron in the global market, one of the regional producers of high-quality steel. The company possesses the world's largest iron ore deposits under development and has achieved one of the lowest levels of IORM production cost. USM Holding Company LLC beneficially owned by Alisher Usmanov (49%) controls 100% of the company's shares.
Please note that this press release is based on materials provided by the company. AK&M Information Agency shall not be held liable for its contents, nor for the legal and other consequences of its publication.
