MMK is approaching the completion of the construction of the second stage of a modern sinter plant

It is expected that the new high-tech sinter plant of PJSC Magnitogorsk Iron and Steel Works (MMK), the second stage of which is planned to be put into operation in the near future, will add c. USD 40 million to EBITDA of the Company per year. In addition to increasing productivity, the unit should significantly reduce MMK's environmental impact. The news was brought to the attention of investors at the Global Metals, Mining & Steel international conference in Barcelona hosted by Bank of America Merrill Lynch. The MMK delegation was headed by General Director Pavel Shilyaev.

Sinter plant No. 5 has a capacity of up to 5.5 million tons of high-quality raw materials per year. A sinter with a higher iron content can improve productivity and reduce coke consumption, so the cost of producing pig iron using sinter from the new unit should be reduced by US $ 8 per tonne. The first stage of the sinter plant was commissioned in April 2019.

The new device will operate using the best available energy-saving technologies, which will significantly improve environmental friendliness. Dust emissions into the atmosphere will be reduced by 2.1 thousand tons per year, and sulfur dioxide emissions will be reduced by 3.5 thousand tons per year. In addition, the release of suspended solids into the water supply system with water circulation will be reduced by 600 tons per year, and the emissions of benzopyrene will be reduced by almost a quarter.

The construction of the new sinter plant is part of MMK's large-scale investment strategy, which includes significant upgrades prior to the first stage of processing. MMK has already started design work on the construction of a new coke oven battery, after the commissioning of which five existing batteries will be gradually decommissioned. MMK also plans to build a new blast furnace to replace three existing ones. In implementing its investment program, MMK strives to further reduce production costs and improve the quality of its products, while paying particular attention to environmental protection.

MMK is one of the world's largest steel producers and a leading Russian metallurgical company. The company's operations in Russia include a large steel mill covering the entire production chain, from the preparation of iron ore to the subsequent processing of rolled products. MMK manufactures a wide range of steel products with a predominant share of high value-added products. In 2018, the company produced 12.7 million tonnes of crude steel and 11.7 million tonnes of commercial steel products. MMK Group's sales in 2018 amounted to USD 8,214 million, and EBITDA - USD 2,418 million.