Iron ore at the Stoilensky deposit is mined in a number of open pits. Mine development is conducted with outside iron ore waste dumping. Loose deposits are mined using a bucket wheel excavator and shovel excavators, while overburden, high-grade ore and iron formations require drilling and blasting operations prior to mining with shovel excavators. Rock is removed from the pit using trucks, rail and conveyor belts.
Iron ore pellets are produced from iron ore concentrate and clay mix. The mix is pelletized and baked resulting in pellets containing 65 mass percent of iron. Pellets serve as raw material for pig iron production.
NLMK Group is Russia’s largest and one of the world’s leading steel companies, with production facilities in Russia, Europe and the US, and deliveries to over 70 countries.
The Company’s vertically integrated business model with a balanced value chain ensures control over all stages of production and maximizes geographical advantages.
100% of NLMK’s mining assets are located in Russia, as well as 93% of its steelmaking capacity. Low steel production costs are ensured due to high self-sufficiency in iron ore, coke, scrap and energy; steelmaking assets located close to raw material sources; and efficient manufacturing technologies. 56% of NLMK’s rolling assets are also located in Russia. NLMK produces a wide range of flat products, including hot-rolled, cold-rolled, galvanized, pre-painted and electrical steel, as well as a variety of long products and metalware. NLMK is the largest producer of high value added steel products in Russia. NLMK’s key customers in Russia are construction and infrastructure companies. In 2014, the Russian market accounted for 43% of Group’s sales.
25% and 19% of the Company’s rolling assets are located in Europe and the US, respectively. The efficiency of NLMK’s foreign rolling operation is ensured by the use of slabs supplied by NLMK’s main production site in Russia and the proximity of an extensive customer base that allow flexibility in addressing the needs of customers. Hot-rolled, cold-rolled, galvanized steel and thick plates produced in Europe and the US are mainly sold to customers in the automotive industry; manufacturers of pipes; wind energy equipment manufacturers; heavy engineering companies and manufacturers of offshore drilling constructions.