Metalloinvest cuts investment program from $750 mln to $600 mln in 2014
MOSCOW. Aug 26 (Interfax) - Metalloinvest is considering decreasing its investment program in 2014, one of the participants in a conference call for analysts with Metalloinvest's financial director, Pavel Mitrofanov, said on Tuesday.
"It's possible that capex this year will be cut by $150 million and amount to $600 million, the source said citing the top manager.
Mitrofanov said that the decrease in capex is connected with the fall in expenses on the purchase of equipment and also the transfer of some small projects to 2015-2016, particularly in the steel segment and for the modernization of energy systems.
At present, Metalloinvest is composing the budget for next year, and according to the estimates of Mitrofanov, the investment program for 2015 could amount to $600 million-$700 million. Earlier the financial director estimated that the company's annual investments in 2014-2015 would amount to $700 million-$750 million.
The group's main investment projects are the construction of hot-briquetted iron plant No. 3 at its Lebedinsky GOK, the construction of indurating machine No. 3 at the Mikhailovsky GOK, as well as the construction of an air separation plant at the Oskol Electrometallurgical Plant (OEMK). The company earlier estimated its investment program for 2012-2016 at $1.868 billion.