The Russian steel and iron ore producer Metalloinvest Holding has drawn up a strategic development planning program for the company till 2012, involving a total of $4.5 billion in investments.
As a part of the program, Metalloinvest plans to build a new mill for the production of flats at its subsidiary OEMK with a total capacity of 1.5 million metric tons a year. In addition, a new mill for the production of pellets with an annual capacity of five million metric tons will be built at OEMK, also by 2012.
At Metalloinvest's other subsidiary Ural Steel, a reconstruction of the flats mill ‘2800' will be carried out. An increase of the mill's capacity from the current 800,000 metric tons to 1.2 million metric tons is expected to be achieved as a result of the reconstruction work.
In its mining segment, Metalloinvest plans to increase the iron ore production capacity at Lebedinsky GOK to 26 million metric tons a year. In 2007, the company plans to complete its second mill for HBI production, with a capacity of 1.4 million metric tons a year, which will be followed by the construction of a third HBI mill, with an annual production capacity of three million metric tons. At Mikhailovsky GOK, Metalloivest is planning to build an additional HBI mill with a production capacity of three million metric tons a year and to increase its iron ore concentrate production capacity to 22 million metric tons annually.
As a result of this strategic development program for the period up to 2012, Metalloinvest expects to produce up to 50 million metric tons of iron ore concentrate a year and up to 10 million metric tons of crude steel annually.