Metalloinvest Management Company
METALLOINVEST Management Company was established in 2006. for the purpose of effective management of assets owned by the holding. METALLOINVEST Holding operates in the mining industry, ferrous metallurgy, and heavy machinery.
Metalloinvest is a manufacturer and supplier of iron ore products and hot briquetted iron (HBI) in the global market, one of the regional producers of high-quality steel. The company has the largest iron ore deposits in the world and has one of the lowest production costs for LRW.
Owners
As of March 2014, Metalloinvest is 100% controlled by USM Holdings, the largest beneficiary of which is Alisher Usmanov (60%). Other shareholders of USM Holdings are the structures of Vladimir Skoch (30%) and Farhad Moshiri (10%).
Aktivs
Metalloinvest is the world's largest Russia and second iron ore mining company. The company is developing deposits with proven iron ore reserves according to the international JORC classification - 14.2 billion tons, which, at the current production level for 2019, guarantees about 140 years of production.
Metalloinvest is the leading producer of iron ore raw materials and hot briquetted iron in the world. At the beginning of 2020, the company manages the following assets:
Mining segment:
Metallurgical segment:
- Oeskolsky Electrometallurgical Plant, OEMK,
- Ural Steel,
- UralMetCom.
Related Business:
- Hypromesis
- Nautilus Minerals is the first company in the world to commercially develop the ocean floor in order to extract non-ferrous metals, is now developing its first Solwara# 1 project in the territorial waters of Papua New Guinea in the western Pacific Ocean. In 2011, Nautilus Minerals was licensed to develop the field for 20 years.
Information Technology at Metalloinvest
2023: How Metalloinvest earned 1.5 billion rubles of additional income on digitalization
On April 23, 2024, Metalloinvest announced that the total effect of the introduction of "digital quarries" at its enterprises exceeded 1.5 billion rubles. The use of new technologies makes it possible to increase productivity and reduce the cost of mining operations by improving the quality of planning and design accuracy.
The Digital Quarry, as noted, consists of three main systems and additional components for solving individual production problems. In particular, the Automated Mining Segment Management System (ACS GDS) collects information from various sources and generates graphs and tables based on it. In turn, the Mining and Geological Information System (GGIS) and modeling technology make it possible to increase the accuracy of mining planning, as well as predict the result of blasting operations.
It is reported that GGIS was introduced at Mikhailovsky and Lebedinsky mining and processing plants. This helped to increase the efficiency of managing the technical and economic risks of quarrying. In addition, multivariable planning and comprehensive decision-making tools are actively used.
Thanks to the use of an automated control system for the mining transport complex, it was possible to increase the efficiency and safety of production. Such digital tools provide constant monitoring of the condition of the equipment, as well as minimize the reaction time to any deviations in the operation of the equipment. In general, the productivity of mining and transport complexes increased by 11%. At the same time, the implementation of an automated drilling control system allowed to increase the productivity of drilling rigs by at least 20%, reduce downtime, and improve the efficiency and quality of design.
Metalloinvest also creates a unified automated open-pit mining management system for all types of machinery, including excavators, dump trucks and rail transport. Work is underway on the automation of downtime management systems, operational planning of repair work, video analysis of hazardous areas, etc.[1]
2022
1.2 billion to improve production safety
On April 25, 2023, Metalloinvest announced that it had allocated 1.2 billion rubles to improve production safety in 2022.
Lost Time Injury Frequency Ratio (LTIFR) among employees and contractors showed positive dynamics in 2022, down 7%.
{{quote 'Since 2021, the Company declared the Year of Industrial Safety, the introduction of new systemic approaches has started, we began to change the attitude of employees to safety. Positive results of the past year clearly demonstrate that we are doing everything right, "said Andrey Cherepov, Deputy General Director for Industrial Safety, Labor and Environmental Protection of Metalloinvest. - Despite all the difficulties during the current period, we continue to implement all projects in the field of occupational health and safety. Our main goal remains to achieve zero injuries at work.}}
As part of the project to implement a risk-based approach to HSE issues Metalloinvest enterprises have carried out work to identify the main risks, monitoring and management mechanisms are defined through the system committees and technical boards. More than 17,000 employees received training in risk management and risk management tools.
In 2022, managers and specialists were also trained in standards work of the manager in the field of safety. The transition from the system continued penalties for violations to reward for their detection and timely elimination. Metalloinvest's corporate mobile application has a function "Risk hunting": Each employee can take a picture of the violation or potentially dangerous situation, send it to the relevant unit and receive a report on their elimination. Points scored for identified risks can be exchange for souvenirs with corporate symbols.
All enterprises have received training on work in limited and closed spaces and working at altitude. For working skills at height landfills were built, at which 3 thousand employees were trained.
Landfills are organized at all enterprises to improve management skills transport means in difficult weather conditions and on difficult terrain relief.
Together with JSA Group, an employee training project was developed and launched repair services based on virtual reality technologies. In 3D space reproduces the most complex and insecure in real production conditions of the scenario.
As part of the program to improve technological safety, work was carried out to identify the main technological risks and their management mechanisms. Continuous work of focus groups to identify risks has been organized.
Due to the installation of stationary gas analyzers, the speed is significantly increased response of the gas rescue service to emergency situations.
A standard was adopted in the field of interaction with contractors interoperability, including contractor rating model in terms of the quality of the services provided. The standard regulating the work and placement of contractors on construction sites.
To improve the efficiency of interaction, prompt elimination of risks and exchange of best practices organized quarterly meetings with key contractors.
The effect of the implementation of digital transformation projects for the year - 1.7 billion rubles
The financial impact of Metalloinvest's comprehensive digital business transformation program in 2022 amounted to RUB 1.7 billion. This is 15% more than in 2021 (1.4 billion rubles). JSA Group announced this on April 18, 2023.
 | Over the past two years, more than 200 projects have been implemented in 4 main areas: Digital Quarry, Digital Asset, Digital Worker and Digital Office, - said Yulia Shutkina, Director of Digital Transformation at Metalloinvest. - The implementation of the program improves the level of production safety, operational efficiency, ensures transparency of accounting and timely decision-making, allows to mobilize hidden resources and improve product quality. |  |
The Digital Quarry includes a set of projects aimed at managing real-time production from ore mining to shipment of finished products, optimizing decision-making in mining planning, improving safety at work and reducing downtime.
In 2022, the Mining and Geological Information System was launched at Mikhailovsky and Lebedinsky GOKs. As a result, the mining department located in Moscow can, together with enterprises in the regions, monitor and manage mining work - from the distribution of tasks within one week to the medium and long term. The speed of decision-making has increased 30 times.
The project of 3D modeling of explosions in the quarry has been launched. The accuracy of the calculation data during the modeling of explosions reached a level of over 80%. The use of preliminary digital calculation of explosions increases the level of safety during mining and blasting operations, especially in situations related to the human factor.
Digital Asset is aimed at increasing production efficiency in terms of technological processes, reducing costs and costs.
More than 13 production automation projects have been implemented. For example, the outdated automated system for controlling the roasting processes of the pelletization and metallization factory of OEMK named after A.A. Ugarov was replaced with one that makes it possible to implement the functions of automated control, contributes to the stabilization of quality indicators of pellets, and also makes it possible to use artificial intelligence systems in management. Thanks to the introduction of machine vision technologies, it was possible to reduce the number of security violations by 90%.
The Company implemented a project to train employees of repair services of the Company's enterprises on the basis of virtual reality technologies. Interactive training in three-dimensional space allows you to reproduce even the most complex and unsafe scenarios in real production conditions, examine the components and details of units and equipment in full detail, and immerse yourself in the learning process without distraction to external factors.
"Digital worker" ensures the preservation of the health of employees and improving the safety of work, digital tools for work in production, comfortable and fast communications.
Also in the application launched a bot service for obtaining personal protective equipment. The time required to obtain PPE was reduced from one hour to seven minutes.
Within the framework of the Smartwatch project, which is aimed at monitoring manual labor and monitoring the health of workers, more than 11 thousand monitoring hours were carried out, 225 employees took part in the project. Recommendations for improving the productivity of teams have been recorded.
A system has been developed to monitor the condition cars of drivers of heavy trucks and buses, warning dispatchers about fatigue, distracting workers from the road at Lebedinsky GOK and Mikhailovsky GOK based on machine vision.
An information system for managing engineering data was put into operation to automate the design and technological preparation of production. The development of information modeling technologies (BIM-design) continued: models were developed according to three new projects of the Company.
A corporate investment project portfolio management system has been launched to automate processes and make it much easier to manage project portfolios and reduce the length of the annual investment planning cycle from three to one month.
Performance indicators
2023: Revenue decrease by 14% to RUB 454.04 bln
In 2023, Metalloinvest's revenue reached 454.04 billion rubles against 525.69 billion rubles a year earlier (a decrease of 14%). The company's net profit also decreased - from 106.07 billion to 68.27 billion rubles. This is evidenced by the reporting under IFRS, one of the largest mining and metallurgical holdings in Russia was published at the end of April 2024.
Metalloinvest's gross profit in 2023 amounted to RUB 241.9 billion, down 17% year-on-year. EBITDA grew by 1% on an annualized basis, to 197.6 billion rubles.
The revenue of the mining segment of Metalloinvest in 2023 amounted to 318.57 billion rubles against 344.72 billion rubles in 2022. In the metallurgical segment, revenues decreased from 200.63 billion to 167.51 billion rubles. The rest of the segments combined recorded a decline in revenue from 39.64 billion to 13.91 billion rubles.
The Metalloinvest report reports that the group's activities in 2023 were significantly influenced by sectoral sanctions from the EU and the United States. By the end of 2023, the holding completely stopped deliveries to Europe, revenue from which in 2022 amounted to 129.3 billion rubles.
| | The group is in the process of adaptation related to the replacement of exiting export markets, as well as a change in supply chains, - said in the materials of the Russian group. | |
As a result of its work in 2023, Metalloinvest paid 6.9 billion rubles in excess profit tax using the security payment option. In 2023, the holding's capital expenditures amounted to 40.33 billion rubles, which is 3 billion rubles less than the costs a year earlier (43.4 billion rubles). Working capital for the year increased from 52.83 billion to 69.84 billion rubles.[2]
History
2023: Oleg Krestinin's appointment as CEO
On December 4, 2023, Metalloinvest announced the appointment of Oleg Krestinin as the new head of the company. In this post, he replaced Nazim Efendiev, who, according to the press service of the group, will remain in the company and focus on making strategic decisions aimed at increasing the sustainability of Metalloinvest's business in conditions of high uncertainty. In turn, Krestinin will manage the operating activities of the company. Read more here.
2022: Sale of the Ural Steel Metallurgical Plant for $500 million
On February 3, 2022, Metalloinvest announced the sale of its Ural Steel metallurgical plant in the Orenburg Region to the Zagorsky Pipe Plant (ZTZ) for $500 million. It is planned to close the deal by the end of February 2022. Read more here.
2020: Head of Metalloinvest holding dies of pneumonia
On April 27, 2020, it became known about the death of Andrei Varichev. The head of Metalloinvest died of pneumonia, TASS reports with reference to the press secretary of the Governor of the Kursk Region Roman Starovoit Anastasia Gurina. Read more here.
2014: Formation of the Board
On March 7, 2014, Metalloinvest Management Company formed a new collegial body - a board of 11 people, the CEO of the company Andrei Varichev was appointed chairman.
In addition to Varichev, the board included:
- Managing Director of OJSC Mikhailovsky GOK MGOK (Metalloinvest enterprise) Sergey Kretov,
- Managing Director of Ural Steel OJSC (Metalloinvest enterprise) Dmitry Mitrofanov,
- Deputy General Director - Financial Director of Metalloinvest Management Company Pavel Mitrofanov,
- Managing Director of Lebedinsky GOK OJSC (Metalloinvest enterprise) Oleg Mikhailov,
- Deputy General Director for Security of Metalloinvest Management Company Yuri Nadeev,
- Marina Novikova, Deputy General Director for Organizational Development and Personnel Management of Metalloinvest Management Company,
- First Deputy General Director - Production Director of Metalloinvest Management Company Andrey Ugarov,
- Managing Director of OEMK OJSC (Metalloinvest enterprise) Nikolay Shlyakhov,
- Sergey Shuvalov, Deputy General Director for Corporate Affairs of Metalloinvest Management Company,
- First Deputy General Director - Commercial Director of Metalloinvest Management Company Nazim Efendiev.
"The formation of a new collegial executive body is aimed at further improving corporate governance and increasing attention to operational activities. The involvement of managing directors of enterprises will help determine the most effective ways of developing the company as a whole, "Varichev said in the release.
1992: Acquisition of the Moscow Institute "Gipromez"
In 1992, Gipromez was corporatized (formed by Gipromez OJSC), independent organizations were formed on the basis of branches in the 1990s (Azovgipromez, Sibgipromez and others, with the generic name gipromezi), Moscow Gipromez was acquired by Metalloinvest.
Notes
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