The Russian steel and iron ore producer Metalloinvest Holding (Metalloinvest) plans in 2011 to increase its iron ore concentrate output from 35.14 million mt in 2010 to 38.5 million mt, of which 22 million mt will be produced at its Lebedinsky GOK facility while 16.5 million mt will be produced at its Mikhailovsky GOK plant, Metalloinvest CEO Eduard Potapov said, adding that in the next 5-10 years Metalloinvest plans to further increase its iron ore concentrate production by another 10 million mt.
In 2010, Metalloinvest saw a 16 percent rise in its iron ore mining output to 91.645 million mt, its iron ore concentrate output increased by 18 percent to 35.14 million mt, while its pellet production went up by 15 percent to 18.485 million mt, all compared to 2009. Meanwhile, the output of hot briquetted iron (HBI) at Metalloinvest's Lebedinsky GOK in 2010 increased by five percent year on year to 2.271 million mt.
Metalloinvest sees reduced steel output in 2010
In addition, in 2010 Metalloinvest, operating two steel plants in Russia and the Hamriyah plant in the United Arab Emirates, produced 6.09 million mt of steel, down six percent, 2.618 million mt of pig iron, down six percent, and 5.621 million mt of finished steel products, down one percent - all compared to 2009. According to Mr. Potapov, the decrease registered by its steel division in 2010 was due to the growth of raw material costs and the unprofitability of some types of products, output of which has been stopped in favor of high value-added products.
Metalloinvest to decide on IPO in H2
In the second half of the current year, Metalloinvest will take a decision on a possible initial public offering (IPO) and might sell up to 20 percent of its shares in the listing.