The Russian steel producer Magnitogorsk Iron and Steel Works (MMK) aims to increase its self-sufficiency in raw materials, especially in coking coal and iron ore, MMK chief financial officer Oleg Fedonin has stated.
Accordingly, within the next three years, MMK plans to invest about $300 million in the development of its Belon coal assets, and expects its self-sufficiency in coking coal to rise from the current 50 percent to 80 percent by 2013, with the development of the Nikitinsky field in Russia's Kuzbass region acquired by Belon in June this year, Mr. Fedonin stated.
On the other hand, by 2011 MMK aims to increase its self sufficiency in iron ore from the current 30 percent to 50 percent from deposits in Russia's Chelyabinsk region, where it plans to produce up to seven million mt of iron ore per year.
In addition, in the first quarter of 2011, MMK will also complete the feasibility study on its Prioskolskoye iron ore deposit in the Belgorod region, which may supply the company for 60 years and increase its self-sufficiency in iron ore to 100 percent, Mr. Fedonin said, adding that MMK also plans to launch a direct reduction unit for its Turkish plant MMK-Atakas. Further decisions on the development of the Prioskolskoye project are to be taken, but according to reports, MMK may sell, swap or use its stake in Australian miner Fortescue to help finance its development.