90% of NLMK blast furnace capacity covered by PCI

Press release

11 July 2017

90% of NLMK blast furnace capacity covered by resource-saving PCI

NLMK Group, an international steelmaking company with operations in Russia, the European Union and the USA, has implemented the resource-saving pulverized coal injection (PCI) technology at 90% of its blast furnace capacities at NLMK Lipetsk. NLMK has launched hot-testing of the PCI unit at its most productive blast furnace, namely Blast Furnace No. 7 (with a capacity of 4.3 million tonnes per year). 

This technology involves co-injecting natural gas and fine coal particles into the blast furnace, resulting in reduced coke consumption. Replacing expensive raw materials with cheaper alternatives, such as switching from coking coal to steam coal, reduces the cost of pig iron production by approximately 5%.

PCI volume will be no less than 150 kg/t of pig iron. The complex is equipped with two coal pulverizer & dryer systems with a capacity of 75 t/h each.

This resource-saving technology is being implemented at NLMK's blast furnaces in turn. Previously, this technology was introduced at Blast Furnace No. 5 (2.7 million tonnes per year) and Blast Furnace No. 4 (1.8 million tonnes per year). Hot-testing at Blast Furnace No. 6 (3.1 million tonnes per year) began in June 2017.

Start-up of the PCI units at Blast Furnaces No.6 & 7 is scheduled for Q3 2017. PCI project capex for the two blast furnaces exceeded 6.8 billion rubles.

About NLMK Group

NLMK Group is the largest steelmaker in Russia and one of the most efficient in the world.

NLMK Group's high-quality steel products are used in various industries, from construction and machine building to the manufacturing of power-generation equipment and offshore windmills.

NLMK operates production facilities in Russia, Europe and the United States. The company's steel production capacity exceeds 17 million tonnes per year.

NLMK has the most competitive cash cost among global manufacturers and one of the highest profitability levels in the industry. In FY2016, the Company generated $7.64 billion in revenue and $1.94 billion in EBITDA. As of 31 December 2016, Net debt/EBITDA stood at 0.36х. The company has an investment grade credit rating from S&P and Fitch.

NLMK's ordinary shares with a 16% free-float are traded on the Moscow Stock Exchange (ticker "NLMK") and its global depositary shares are traded on the London Stock Exchange (ticker "NLMK:LI"). For more details on NLMK shareholder capital, please follow the link.

NLMK Group received the Steel Industry Leadership Award at the prestigious 2016 Platts Global Metals Awards held by S&P Global Platts, a leading international industry analytical periodical.

For more information on NLMK Group, please visit www.nlmk.com/en