Russian pig iron and coking coal producer Industrial Metallurgical Holding (KOKS Group) has announced that, under the company’s production, commercial and investment processes optimization program, it will reduce its capital expenditures for the current year by 50 percent, from RUB 9 billion ($144 million) to RUB 4.6 billion ($73.62 million).
IMH’s investment program includes completion of a number of large projects, such as construction of the second stage at the Butovskaya mine by 2017; further construction of the Tikhova mine by 2018; development of the second mining level at the Gubkina mine by 2019; and reconstruction of the blast furnace No.1 at Tulachermet in 2018 to increase the production of pig iron, including premium grades with low sulphur content. The completion of IMH’s upstream projects will make the company fully self-sufficient in high quality iron ore and coal by 2020.