METALLOINVEST to supply 80% of HBI total output in 2008 under long-term contracts

Metalloinvest signed long-term contracts to supply 80% of Hot Briquetted Iron (HBI) total output in 2008. After setting up the second HBI production line at Lebedinsky GOK the Holding intends to increase HBI production capacity up to 2.4 mln tn against current 1.4 mln tn.

The contracts are signed with the largest international metallurgical enterprises. Monthly quantity of shipments to Corus (the Netherlands) will make up 25 thousand tn in 2008. In addition the company considers increasing the purchase volume of raw materials. Metalloinvest will also supply HBI to US Steel (Slovakia), ABS and Luccini (Italy).

Besides the Holding plans to deliver iron-ore briquettes in 2008 within memorandums to Iran (approximately 15 thousand tn per month), Korea (20 thousand tn) and Ukraine (40 thousand tn). Presently Metalloinvest is negotiating iron ore raw materials sales to Japan and Vietnam.