11 April ‘17

MMK Group to invest over RUB 5.6 bln in Environmental Programme in 2017

Environmental initiatives in 2017 will cover all of MMK Group’s production facilities and subsidiaries. An estimated RUB 5.26 bln will be invested in 69 initiatives at the Magnitogorsk facility, while the remaining RUB 325 mln will be directed to subsidiaries.

There are several priority areas. Over RUB 1 bln will be invested into new environmental facilities, including the construction of a new sinter plant and continuous hot-dip galvanizing lines at its metal-coating shop #3 at rolling mill #11, as well as construction of new stationary wagon damper at the sinter burden shop.

The focus will remain on cutting air pollutant emissions. This includes 33 planned initiatives worth more than RUB 3.6 bln. This will enable an emissions reduction of 2,500 tonnes per year, cutting the carbon intensity to 1.95 kg per one tonne of steel while also ensuring compliance with the maximum admissible emissions rates, and improving the gas-cleaning units’ efficiency and reliability. Initiatives aimed at reducing air emissions will include building aspiration systems for casting beds at blast-furnaces, as well as reconstruction work on the double-hearth furnace’s gas-cleaning unit and the ladle metallurgy facilities at the arc-furnace shop.

Around RUB 650 mln will be invested into reducing water pollutant discharge. Key initiatives will include the reconstruction of MMK’s circulation water supply system and expanding the coolant storage tank.

Another RUB 900 mln will be invested in initiatives to reduce and prevent the impact of industrial waste on the environment. Projects completed in 2017 will make it possible to use 2.29 mln tonnes of waste as secondary materials for burden.

MMK acknowledges its responsibility for any environmental impact of its production operations. This is confirmed by its environmental policy approved by the management and certification of its environmental management system (EMS) in line with the requirements of the ISO 14001 by TÜV NORD (Germany).

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 complex 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 2016, the company produced 12.5 million tonnes of crude steel and 11.6 million tonnes of commercial steel products. MMK Group had sales in 2016 of USD 5,630 million and EBITDA of USD 1,956 million.

Media contacts:

Dmitry Bulin

tel.: +7 (499) 238-26-13

E-mail: bulin.dn@mmk.ru

Dmitry Kuchumov

tel.: +7 (499) 238-26-13

E-mail: kuchumov.do@mmk.ru

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