Alexey Mordashov, Chairman of the Board of Directors approved grant for the development plan of the plant

21 December 2017

Alexey Mordashov, the Chairman of the Board of Directors of PAO “Severstal” and the Company’s leadership team visited production departments of the Yakovlevsky mine, and approved next year’s business plan , while meeting employees of the plant.

The Chairman and leadership team visited the central control room from where the production management islocated, as well as the new main ventilation system, the headframe No. 1 and the crushing and sizing plant.

The business plan of the plant includes an increase in ore production phased over several years. It is planned to increase this amountby more than 50% compared to the current year – from 872 to 1.315 million tons of ore.

Alexey Mordashov said: “The main goal of production growth is to increase the plant’s self-sufficiency in iron ore raw materials. At the moment, Cherepovets Steel Mill (the core asset of “Severstal”) consumes about 8 million tons of concentrate, of which 4 million tons are provided by our MPP in Olenegorsk. The rest is purchased at the market. The Yakovlevsky mine will potentially provide us with 100% self-sufficiency in that product”.

The majority of our resources for next year will be invested in equipment upgrade and capital mining operations. For example, six new LDH machines have already been purchased.

The Chairman of “Severstal” stressed that the plant will have to significantly increase its operational efficiency. “We are starting to introduce “Business System” and other best practices regarding occupational safety, cost savings, procurements improvement and business administration into the mine. I believe that these measures will help the mine to achieve excellent results”, declared Alexey Mordashov.