Stoilensky resumes operations
25 September 2020
On September 22nd, 2020, Stoilensky Mining and Beneficiation Plant, an NLMK Group company, resumed production of iron ore products that was discontinued on September 7th, 2020, following the collapse of an ore transportation conveyor gallery, in hot-testing mode.
Restoration took 12 days from the start of the works: two days ahead of the plan. All works were being performed around the clock. 800 Stoilensky and NLMK Group employees and contractors were involved in works on site.
NLMK’s ordinary shares with a 18.6% free-float are traded on the Moscow Stock Exchange (ticker "NLMK") and its global depositary shares are traded on the London Stock Exchange (ticker "NLMK:LI"). The share capital of the Company is divided into 5,993,227,240 shares with a par value of RUB1. For more details on NLMK shareholder capital, please follow the link.
Repair costs totalled approximately 250 million rubles.
During the forced shutdown, Stoilensky carried out major repairs at its beneficiation plant and the pelletizer, planned for end of 2020 and for 2021. Optimization of repairs will help reduce concentrate production losses in 2020 and boost production volumes next year.
During the repair period, the iron ore needs of NLMK Lipetsk, the main consumer of Stoilensky products, were covered by the company’s own stock and external supplies. The incident did not impact NLMK Lipetsk steel and rolled product output.
About NLMK Group
NLMK Group is the largest steelmaker in Russia and one of the most efficient in the world.
NLMK Group’s steel products are used in various industries, from construction and machine building to the manufacturing of power-generation equipment and offshore wind turbines.
NLMK operates production facilities in Russia, Europe and the United States. The Company’s steel production capacity exceeds 17 million tonnes per year.
NLMK has a highly competitive competitive cash cost among global manufacturers and one of the highest profitability levels in the industry. In 12M 2019, the Company generated $10.6 bn in revenue and $2.6 bn in EBITDA. Net debt/EBITDA stood at 0.7x. The Company has investment grade credit ratings from S&P, Moody’s, Fitch, and RAEX (Expert RA).