The investments will focus on continuing existing mining operations and expanding the resource bases at Severstal’s Vorkutaugol, Olcon, and Karelsky Okatysh mines, as well as geological studies of perspective domestic and international greenfield projects.

More than RUR 223 million will be invested in exploration projects in Russia, nearly 2.5 times more than in 2011. Work is under way to increase the mineral resources at Olcon in the Murmansk Region including developing the new Northern Iron Ore District project in the Chudzyavr and Pinkelyavr fields. In Karelsky Okatysh, exploration in 2012 will be primarily focused on the South Korpangsky area as well as continued supplementary exploration of the Kostomuksha deposit.

Approximately RUR 100 million will be invested in the exploration of Coal Plot N1 at the Usinsky deposit in the Komi Republic, and more than RUR 400 million will be invested in the exploration of the Tsentralnoye (Central) deposit in Tuva in 2012, a significant increase on the approximately RUR 204 million invested in 2011.

The company will also continue work on its iron ore greenfield projects in Liberia and Brazil. A targeted investment of $66 million is planned in 2012 for the Putu iron ore project in Liberia, more than double the investment of the previous year. A preliminary feasibility study of the project is expected to be completed by mid-2012, with drilling volumes ramping up thereafter. A targeted investment of $6.4 million is planned for the Amapa iron ore project in Brazil in 2012 (up from $800,000 in 2011), including the completion of a scoping study.