Metalloinvest to sustain capex at 14 bln rubles in 2012
MOSCOW. Nov 7 (Interfax) - Metalloinvest, a major Russian iron ore and steel producer, expects to maintain its investment program in 2012 at least at this year's level of about 14 billion rubles, the first deputy general director and chief of production at Metalloinvest Management Company, Alexei Ugarov said on Monday.
"This year Metalloinvest plans to invest about 14 billion rubles across all four operations," Uvarov told reporters at the Moscow Institute of Steel and Alloys.
"Of course, a great deal will depend on the situation on the markets, but I think that at the very least not less, and for now a program of more than 14 billion [rubles] across the holding is being considered," Uvarov said in response to a question about the company's investment target for 2012.
Ugarov said that in the first half of 2012 the company might sign a major contract for the construction of a third hot-briquetted iron line at Lebedinsky GOK.
Other priority projects, he said, include the construction of a No. 3 induration machine at Mikhailovsky GOK and a concentrate drying facility at LGOK. In future, the company might move ahead with a project to produce hematite concentrate at MGOK.
In its steel division, the company plans to expand steel production at the OEMK plant to 3.85 million tonnes from the current 3.3 million tonnes per year and modernize the metalization line. At Urals Steel, there are plans to build a degasser and overhaul coke battery No. 6.
All of Metalloinvest's steelmaking and mining divisions have reached 100% capacity, Ugarov said. "For November, we have a full workload for all enterprises. Prices are declining slightly, but capacity is full," he said.
Starting in the third quarter, the company began to shift focus from exports to selling iron ore products to Russian customers, reportedly signing long-term contracts with Novolipetsk Steel and Magnitogorsk Steel. The latter is currently buying about 200,000-250,000 tonnes of raw material from Metalloinvest per month, Ugarov said.