NLMK.L Regulatory News (NLMK)

Press release

22 December 2017

NLMK Group increases iron ore fines output by 0.8 m t

NLMK Group, an international steelmaking company with operations in Russia, the USA, and the European Union, has commissioned four more high-pressure grinding roll (HPGR) units, boosting productivity of Stoilensky's Beneficiation Plant by 0.8 mt of iron ore concentrate to 17.4 mtpa. As a result, Stoilensky has now covered 100% of the Group's blast furnace needs in iron ore concentrate with a Fe content of over 65%.

Implementation of the HPGR technology began at the Beneficiation Plant in 2016. The first four crushers, that supplemented the traditional cone crushers and ball grinders, enabled Stoilensky to grow its iron ore concentrate output by 1 mt to 16.6 mtpa. Stoilensky also significantly decreased its consumption of energy and grinding bodies required to process the ore.

Konstantin Lagutin, NLMK Group Vice President of Investment Projects, said:

"Over 1.5 years of operation the HPGR technology proved to be efficient and reliable. We have now launched HPGR at Sections 2 & 3, completing the upgrade of the entire Beneficiation Plant. This will enable us to achieve an output of 37 mtpa (up by 5 mt vs. 2013), and become 100% self-sufficient in iron ore feedstock."

Investment in HPGR technology at Sections 2 & 3 and expansion of ore extraction amounted to 4.5 billion rubles. This is the most significant of Stoilensky's remaining Strategy 2017 investment projects.

For more detailed information on the HPGR project, please visit our website.

About NLMK Group

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

NLMK Group's 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 9M 2017, the Company generated $7.25 billion in revenue and $1.87 billion in EBITDA. As of 30 September 2017, Net debt/EBITDA stood at 0.3х. 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"). The share capital of the Company is divided into 5,993,227,240 shares with a par value of RUB1. 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 our website