Severstal updates Olcon development strategy through 2040, estimates investments at 90 billion rubles

MOSCOW. June 19 (Interfax) - Severstal has approved the development program for the Olenegorsk Mining and Processing Plant (Olcon) through 2040 inclusive, according to which the total volume of investments from 2025 to 2040 will exceed 90 billion rubles, the company said in a statement.

The production volume of iron ore concentrate at the mining and processing plant is planned to double by 2027; the company has not disclosed absolute figures, but said that this volume will not decrease until 2040. According to Severstal's development strategy through 2028, which was presented in early June, Olcon produced 2 million tonnes of concentrate in 2023, and the target for 2028 was 3.9 million tonnes.

The main production volumes will come from the three largest quarries - Olenegorsk, Komsomolsky and Pechegubsky.

According to Severstal's development strategy, capex will be around 119 billion rubles in 2024 and peak at around 170 billion rubles in 2025; it will exceed 100 billion rubles per year until 2028 inclusive.