Mikhailovsky HBI and Metalloinvest sign letter of intent on future pellet supply for HBI Plant under construction

Mikhailovsky HBI and Andrey Varichev Mikhailovsky GOK (part of Metalloinvest) have signed a letter of intent for the supply of iron ore pellets to the future HBI plant in Zheleznogorsk, Kursk region.

The protocol was signed by Pavel Mitrofanov, Deputy CEO of USM, on behalf of Mikhailovsky HBI, and Nazim Efendiev, CEO of Management Company Metalloinvest, on behalf of Mikhailovsky GOK.

Nazim Efendiev, CEO of Management Company Metalloinvest, said: "We are implementing a comprehensive development programme at Mikhailovsky GOK, which will radically improve the enterprise’s iron ore product quality. By the time the new HBI plant is commissioned in 2024, Mikhailovsky GOK will be able to fully meet its demand for high-quality pellets.”

Mikhailovsky GOK's development programme entails the launch of a concentrate beneficiation facility in 2022 which will annually produce up to 16.9 mn tonnes of high-quality concentrate for pellet production at Mikhailovsky GOK's pellet plant.

In 2020, Mikhailovsky GOK launched the production of premium pellets from flotation concentrate supplied by Lebedinsky GOK. The enterprise plans to produce up to 3 mn DR-grade pellets, to be used for metallisation.

Mikhailovsky HBI (55% owned by USM, 45% by Mikhailovsky GOK) is implementing a project to build an HBI plant in the Kursk region with a production capacity of over 2 mn tonnes per year. The new plant is expected to be commissioned in the first half of 2024.

Investment in the construction of the plant is estimated at over 40 bn roubles excluding VAT. The project will create around 400 highly qualified jobs in Zheleznogorsk.