Metalloinvest increases productivity at OEMK's DRI Plant 2

OEMK (part of Metalloinvest) has successfully completed major repair works at DRI Plant 2. This has enabled the plant to increase production from 88 to 110 tonnes per hour. The increased productivity at DRI Plant 2 will enable OEMK to boost direct reduced iron (DRI) production by nearly 200,000 tonnes per year.

OEMK operates four DRI Plants with a total production capacity of over 3 mn tonnes of DRI per year. DRI is the ideal raw material for the production of high-quality steel grades, and is produced through the reduction of oxidised iron ore pellets using heated reducing gas, obtained by converting natural gas in reformers.

As part of the major repair works at DRI Plant #2, modern equipment has been installed, including the total replacement of the reformer tubes and the catalyser, which has enabled
the plant to boost its productivity.

Andrey Ugarov, First Deputy CEO, COO, Management Company Metalloinvest, commented: "Increasing the productivity of DRI Plant #2 will reduce production costs for high-quality steel at OEMK and will increase our SBQ margins. Implementing this investment programme, which aims to increase the Company's share of high-value added products, means that the Company will be less affected by market volatility."

In order to ensure the supply of additional raw materials to DRI Plant #2 at OEMK, construction is being completed at the enterprise on an intake facility for iron ore pellets from Lebedinsky GOK and Mikhailovsky GOK (both part of Metalloinvest). Total investment in the major repair works at DRI Plant #2 and the construction of the intake facility for pellets will amount to approximately 3 bn roubles. The entire complex, comprising
both facilities, is planned to be launched in October 2017.