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NLMK Plans Construction of Pelletizing Plant at Stoilensky
08/23/2011 - NLMK affiliate Stoilensky has signed a contract for a new pelletizing plant with an annual capacity of 6 million tonnes of iron ore pellets. Equipment, technologies and other services will be provided by a consortium of Siemens VAI and Outotec.
NLMK affiliate Stoilensky has signed a contract for a new pelletizing plant at Stoilensky with an annual capacity of 6 million tonnes of iron ore pellets.
Design and supply of equipment and technologies as well as other services related to the construction will be provided by a consortium of Siemens VAI and Outotec. The EUR280 million contract covers the supply of main process equipment.
The new plant will enable the company to fully cover its own pellet requirements as early as 2015, even considering the launch of the 3.4 million tonne/year Blast Furnace #7 at Novolipetsk.
Stoilensky is currently working to expand its pit and grow its ore processing and beneficiation capacities. Section IV of the Beneficiation Plant, which represents 4 million tonnes of annual concentrate capacity, became fully operational in May 2011, adding an incremental 2 million tonnes of annual iron ore capacity. As a result, Stoilensky’s annual iron ore concentrate capacity will total 14 million tonnes of iron ore concentrate and 1.7 million tonnes of sinter ore by this year’s end. Construction of the crushing facility and Section V of the Beneficiation Plant, representing an additional 4 million tonnes of annual iron ore concentrate, will be completed by 2014. The newly launched capacities will ensure raw material supply to the Pelletizing Plant that is currently under construction.
Expansion of iron ore production supports the company’s strategy to ensure self-sufficiency in key raw materials. The company is planning a 30% increase in ore output at the operating Stoilensky mine (from 2011) to ensure the required raw material supply to the new pelletizing plant.
Stoilensky is currently working to expand its pit and grow its ore processing and beneficiation capacities. Section IV of the Beneficiation Plant, which represents 4 million tonnes of annual concentrate capacity, became fully operational in May 2011, adding an incremental 2 million tonnes of annual iron ore capacity. As a result, Stoilensky’s annual iron ore concentrate capacity will total 14 million tonnes of iron ore concentrate and 1.7 million tonnes of sinter ore by this year’s end. Construction of the crushing facility and Section V of the Beneficiation Plant, representing an additional 4 million tonnes of annual iron ore concentrate, will be completed by 2014. The newly launched capacities will ensure raw material supply to the Pelletizing Plant that is currently under construction.
Expansion of iron ore production supports the company’s strategy to ensure self-sufficiency in key raw materials. The company is planning a 30% increase in ore output at the operating Stoilensky mine (from 2011) to ensure the required raw material supply to the new pelletizing plant.
Starting from 2015, the company’s planned annual output of saleable iron ore from Stoilensky — 2.0 million tonnes of sintering ore, 11.0 million tonnes of iron ore concentrate, and 6.0 million tonnes of iron ore pellets — will ensure 100% self-sufficiency in iron ore raw materials. During construction of the pelletizing plant, iron ore pellets will be supplied to Novolipetsk under long-term contracts between NLMK and Metalloinvest Holding, specifically from the Lebedinsky and Mikhailovski mining and processing plants.
The Group’s investment into the Stoilensky expansion, including construction of the pelletizing plant, is estimated at RUR41 billion over 2011– 2015. Construction of the new pelletizing plant is part of the Group’s strategy targeted at strengthening vertical integration; it is being executed as part of Stage 3 of NLMK’s Technical Upgrade Program.
Construction of the pelletizing plant is expected to be completed in 2014.
