The Russian steel and iron ore producer Metalloinvest Holding (Metalloinvest) has announced that in 2010 it expects to see a 20 percent year-on-year growth in its iron ore concentrate production volumes, while pellet production volumes are expected to increase by 14 percent year on year.
"We are purchasing new mining and processing equipment for our plants and upgrading our steel production facilities to increase output at the fastest pace and ensure full utilization of our capacities. We are looking to expand our investment activities to enable further development of our companies and ensure increased production of high added-value products. We are planning to double output of HBI in the next five years. We also intend to expand pellet production capacities at our Mikhailovsky Mining and Processing Plant (Mikhailovsky GOK)," Metalloinvest CEO Eduard Potapov said.
In H1 2010, Metalloinvest produced 17.1 million mt of iron ore - up 141 percent year on year, 8.9 million mt of pellets - up 33 percent year on year, and 1.2 million mt of hot briquetted iron (HBI), compared with the same period last year. Meanwhile, its H1 steel production remained largely unchanged at the level of 3.1 million mt.
In addition, by 2015 Metalloinvest expects to increase its iron ore production by 30-40 percent, or by about 10 million mt, by adding extra processing facilities at its mining division, while it plans to expand its steel output by 12-15 percent to up to 7.5 million mt, local Russian media reported citing Mr. Potapov. The total investments by 2015 are expected to amount to $2.5-3 billion.