Key Operational Results

In 2014, we continued our work on enhancing efficiency of Metalloinvest's operations. We are implementing a number of important investment projects designed to increase the production capacity of the Company's Mining and Steel Segments. Modernisation of production assets and introduction of modern technologies allow us to strengthen our market leadership and maintain high quality of our products”.
Andrey Ugarov,
First Deputy CEO — Production Director

Production and Shipments

Output by Product, million tonnes

Iron ore*36.840.139.838.438.7+1.0%
Pig iron2.

Shipments by Product, million tonnes

Iron ore*9.812.712.511.111.0-0.8%
Pig iron0.

Iron ore

In 2014, production of iron ore (concentrate and sintering ore) amounted to 38.7 million tonnes, 1.0% more than in 2013. Approximately 70% of iron ore was processed into products with high added value, such as pellets and HBI/DRI.

Iron ore shipments to the end consumers declined by 0.8% in 2014 to 11.0 million tonnes. The insignificant reduction of iron ore shipments is explained by the growth of production of pellets.

Iron ore production and shipment in 2010–2014, million tonnes


In 2014, production of pellets amounted to 22.7 million tonnes, 0.4% more than in 2013. Pellets produced by Metalloinvest contain up to 66.7% of iron, meeting the highest international quality standards of crude steel.

In 2014, the shipping volume of pellets to end consumers grew by 1.1% to 13.9 million tonnes.

Production and shipment of pellets in 2010–2014, million tonnes

Metalloinvest plans to increase its pellet production capacity:

In 2014, the Company finished the construction of Pellet Plant #3 at Mikhailovsky GOK, with the output capacity of 5 million tonnes of per year. Phased commissioning of the experimental industrial operation started in February 2015.

More information on Pellete plant #3


The increasing HBI/DRI production ensures Metalloinvest’s market leadership. The Company increases HBI/DRI output supported by growing demand, high profitability of sales, and low competition in the commercial HBI market. In 2014, Metalloinvest produced 5.3 million tonnes of HBI/DRI, or 1.1% less than in 2013. The Company remains Russia’s only HBI/DRI manufacturer.

The Company sells its HBI to external consumers. The high bulk density of HBI allows the Company to significantly reduce its transportation costs. In 2014, the Company shipped 2.3 million tonnes of HBI/DRI, 93% of which was HBI.

In 2014, HBI shipments to end consumers made 100% of its production volume. In the reporting year, Metalloinvest retained its leading position in the global commercial HBI market.

The decline in the production and shipments of metallised raw materials in 2014 resulted from the scheduled capital repair and partial upgrade of HBI-2 Plant.

Metalloinvest plans to increase its HBI production capacity:

The Company continued the construction of HBI-3 Plant with the output of 1.8 million tonnes per year. Upon completion of construction the plant will become the largest HBI production unit in the world, and, following upgrades at HBI-2 Plant, Metalloinvest’s total HBI/DRI production capacities will increase to 7.2 million tonnes per year.

Production and shipment of HBI/DRI in 2010–2014, million tonnes

More detailed information on HBI-3 plant

Pig iron

Modernisation of the pig iron production facilities at Ural Steel completed in 2014 allowed the Company to increase its pig iron production by 4.8% after a decline in 2009–2012.

Pig iron shipments in 2014 grew by 25.0%, to 1.8 million tonnes. The increase in shipments was due to the higher volumes of pig iron smelting (primarily, as a result of output increase at the blast-furnace shop), and the growth of sales to external consumers, a strategy that was the most economically reasonable under the existing market conditions.

Production and shipment of pig iron in 2010–2014, million tonnes


In 2014, the Company produced 4.5 million tonnes of steel. Its steel production declined 3.7% from 2013. The decrease of steel production between 2009 and 2014 was caused by plans of gradual retirement of the open-hearth steel making equipment at Ural Steel for the purpose of enhancing economic efficiency and environmental safety of the production process.

In 2014, shipments of steel products to the end consumers declined in proportion to crude steel production by 3.6% to 4.2 million tonnes. The main consumers of steel products are automotive, engineering, piping, construction, metal, and ball-bearing enterprises.

Production and shipment of steel in 2010–2014, million tonnes


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