7 Jul 2010 13:58

NLMK borrows EUR125 mln from EBRD to improve energy efficiency

MOSCOW. July 7 (Interfax) - Novolipetsk Steel (NLMK) (RTS; NLMK) has signed a loan agreement worth EUR125 million with the European Bank for Reconstruction and Development (EBRD) to finance its Energy Efficiency Program, the Russian steel major said in a statement.

The EBRD will provide the funds in two installments for three and five-year terms.

The funds will be used to finance the construction of a 150 megawatt Utilization Power Plant. The plant will be fired using by-product gas from blast-furnace operations. It will also be used to finance NLMK's plans to integrate the Pulverized Coal Injection (PCI) technology into the blast furnace operations.

"EBRD loan funds will help to lower the costs of the Capex projects that will improve the energy efficiency of our operations substantially, decrease CO2 emissions, and increase NLMK's energy self-sufficiency by up to 56%," said Galina Aglyamova, NLMK Group's Financial Vice-President.

The NLMK Group includes the Russia-based Novolipetsk Steel Plant, iron ore miner Stoilensky GOK , coke producer Altai Koks, VIZ-Stal and Maxi Group, as well as DanSteel A/S in Denmark. NLMK acquired Beta Steel in the U.S. in October 2008.

Vladimir Lisin controls 84.6% of shares via Fletcher Group Holdings and LKB-Invest. Company management owns 2.5%.