03 April ‘19

MMK invests nearly RUB 9 bln in environmental programmes in 2018

Most of the investment in environmental safety went towards the construction of environmental facilities. Last year, this effort received RUB 5.845 bln. As a whole, MMK's Environmental Programme for 2018 consisted of 84 environmental initiatives:
- 45 for the reduction of air pollutant emissions;
- 26 for the reduction and prevention of pollutants being released into water bodies;
- 13 for the utilisation and environmentally friendly disposal of waste and reclamation of land.

As part of MMK’s Environmental Programme, 69 initiatives were implemented in 2018 and a further 15 will be implemented in 2019. Particular highlights of last year's environmental initiatives were the construction of casting beds and a stockhouse for blast furnace No. 1; the construction of an aspiration system for the stockhouse of blast furnace No. 2; the reconstruction of the circulating water system, including the expansion of cooling tanks, preventing the release of waste-water into the Magnitogorsk reservoir; the construction of an enrichment plant for iron tailings from the sludge storage facility No. 2, capable of processing up to 2 mln tonnes of industrial waste each year to produce 500,000 tonnes of concentrate with an iron content of up to 59%.

Last year, construction continued on the environmentally safe features at the new sinter plant No. 5, which will become operational this year. The new sinter plant, which has a capacity of 5.5 mln tonnes per year and is equipped with modern environmentally safe features, will reflect the best available technologies. Among these features there will be 15 gas treatment facilities, two sinter gas recirculation systems, a circulating water system and a sludge disposal sulphur capture system. Overall investment into the environmental features of sinter plant No. 5 will amount to RUB 5 bln.

MMK's focus is on the use of industrial waste in its own production and reclamation of exhausted quarries in Magnitnaya Mountain. In 2018, more than 11 mln tonnes of metallurgical slag were processed. The metal is extracted, leaving behind broken and crushed slag. The remaining waste from metallurgical production is used to reclaim exhausted quarries in Magnitnaya Mountain.

From 2012 to 2017, the first stage of reclamation was completed on a 154,000 square metre area in the western quarry of the mountain. The ground was made fertile and greenery and perennial grasses were planted. Since 2012, 5,600 trees and 5,900 shrubs have been planted. In 2018, work was carried out to care for the green spaces planted in the first stage of reclamation. Work on the second stage of reclamation also continued; 94,700 square metres of land were prepared for planting.

MMK also took part in an ambitious project to create green spaces in Magnitogorsk. In 2018 a total of 2,600 birch, maples, mountain-ash and fir trees, as well as 3,250 cotoneaster seedlings, were planted in the parks, public gardens and educational institutions of Magnitogorsk at the expense of MMK.

When planning long-term and sustainable development, MMK always works to ensure environmental safety and to improve their environmental management system. The Company's production work is carried out in accordance with Russian legal requirements in the field of environmental protection and with the international standard ISO 14001:2015. As part of the Company's development strategy for the period up to 2025, MMK initiated the "Clean City" programme, whereby they aim to lower Magnitogorsk's air pollution rating to the level of 5 units by 2025 (satisfying the conditions of a "Clean City") and for their production standards to reflect the use of the best available technologies in Russia in terms of environmental impact. By 2025, MMK's total investment in environmental projects should exceed RUB 38 bln.

About MMK
MMK is one of the world's largest steel producers and a leading Russian metals company. The company's operations in Russia include a large steel-producing unit encompassing the entire production chain, from the preparation of iron ore to downstream processing of rolled steel. MMK turns out a broad range of steel products with a predominant share of high-value-added products. In 2018, the company produced 12.7 mln tonnes of crude steel and 11.7 mln tonnes of commercial steel products. MMK Group had sales in 2018 of USD 8,214 mln and EBITDA of USD 2,418 mln.

Investor contacts:
Andrey Serov
tel.: +7 (3519) 24-52-97
E-mail: serov.ae@mmk.ru

Media contacts:
Dmitry Kuchumov
tel.: +7 (499) 238-26-13
E-mail: kuchumov.do@mmk.ru

Dmitry Bulin
tel.: +7 (499) 238-26-13
E-mail: bulin.dn@mmk.ru

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