Russian steelmaker NLMK Group has announced that it has signed a memorandum of intent with Belgorod Region administration and the Russian Ministry of Industry and Trade for the construction of a new metals and mining project at the Stoilensky Mining and Beneficiation plant. The project with an investment of approximately RUB 250 billion ($3.42 billion) will be built with environmentally-friendly technologies and ensure the company can master hot-briquetted iron (HBI), a new product for the company. Commissioning of the project is scheduled for 2027-2028.
The project covers the expansion of the existing open-pit mine to increase iron ore output from 43 million mt to 67 million mt per year, the construction of new beneficiation capacities for a total of 10 million mt of concentrate, a pelletizing plant with a capacity of nine million mt of pellets, and an HBI shop with a capacity of 2.5 million mt of HBI. The project will create up to 1,300 new high-tech jobs.
“HBI is currently in demand both in Russia and on the global market. Using this product in making steel cuts carbon emissions in half versus traditional technologies. The project marks the beginning of NLMK Group’s planning process for its new strategic development stage, Strategy 2030. High-tech integrated digital production with a low carbon and climate footprint is set to reinforce the company’s competitive advantages,” Grigory Fedorishin, NLMK CEO, said.