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History

2023: Construction of iron ore complex for 97 billion rubles

On October 18, 2023, Severstal announced the construction of a complex for the production of iron ore pellets in Cherepovets. The volume of investments in this project will amount to 97 billion rubles.

The capacity of the complex will be 10 million tons, construction will begin in January 2024, and the launch is scheduled for 2026, the company said. At the first stage, it is assumed to use own funds.

Severstal has announced the construction of an iron ore pelletizing complex in Cherepovets. The volume of investments in this project will amount to 97 billion rubles

Iron ore pellets are raw materials for the production of cast iron, from which steel is in turn made. Iron ore from the Yakovlevsky Mining and Processing Plant and concentrate from the Olenegorsk Mining and Processing Plant (both part of Severstal) will be used for their production at Cherepovets Steel Mill.

By October 2023, another subsidiary, Karelsky Okatysh JSC, supplies pellets for Cherepovets Steel Mill, which produces about 11 million finished products per year. As the representative of the enterprise explained to Vedomosti North-West, iron ore pellets from the new complex in Cherepovets will fully cover the internal needs of Cherepovets, and after the launch of the capacity, products from the Karelian enterprise will completely go for sale.

The main designer of the complex is Severstal Project LLC. The delivery of the main technological equipment will be carried out by a company from China. Additional equipment and construction materials in the amount of about 20 billion rubles are planned to be purchased from domestic companies with a priority of loading enterprises of the Vologda region.

Evgeny Vinogradov, General Director of Severstal Russian Steel and Resource Assets, quoted in the statement, noted that as a result of the transition to better raw materials, after the construction of the pellet production complex, Severstal will be able to phase out the sinter machines of sinter shop No. 2, which have a negative impact on the environment^[1].

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