Metinvest almost triples capex, spending $81 mln on eco-projects in H1 2021

KYIV. Sept 1 (Interfax-Ukraine) – Metinvest B.V. (the Netherlands), the parent company of Metinvest mining and metallurgical group, in January-June 2021 increased capital investments by 31% compared to the same period in 2020, to $411 million from $313 million.

According to the preliminary unaudited interim financial statements for the first half of 2021 released on Wednesday, investments in strategic projects grew by 4%, while investments in maintenance projects – by 46%, which brought their shares in total investments to 28% and 72%, respectively (35% and 65% in the first half of 2020).

During the reporting period, the group embarked on a new major project to expand production capacity – construction of a new cold-rolling mill at Illich Steel. Investments in the first phase, which is expected to be completed by late 2024, will exceed $800 million. The mill offers new opportunities in terms of both products and markets.

Metinvest is also continuing construction of air separation units Illich Steel. Air Liquide supplied about 70% of the main equipment for construction. The estimated $80 million project is expected to be completed in the first quarter of 2022.

In August, the group launched a new line of the cyclic flow technology complex at Inhulets plant, and in September it is to launch a new cyclic flow technology for transporting rocks at Pivnichny Mining and Processing Plant. The cost of these projects, which will reduce operating and capital costs for iron ore mining and help maintain production volumes, is expected at $50 million at Inhulets plant and $200 million at Pivnichny plant.

Metinvest has also launched an initiative to thicken enrichment waste at Pivnichny plant.

At the coking coal mines, the group continued construction of new block No. 11 at the mine of the recently consolidated Pokrovske Coal Group to maintain production volumes.

According to the report, environmental investments in the reporting period amounted to $84 million. At the same time, it is emphasized that Metinvest continues to prioritize environmental issues. In June, Illich Steel completed reconstruction of the gas treatment facilities of the foundry yard and the bunker overpass at blast furnace No. 5, the project cost is $20 million. A similar project for $27 million was launched at blast furnace No. 4 and is expected to be completed in the first half of 2022. Progress has been made on a number of other initiatives, including reconstruction of gas cleaning equipment for oxygen converters at Azovstal (supplies of main equipment and preparatory work for construction are ongoing) and replacement of gas cleaning units on the Lurgi 552-A roaster at Pivnichny plant (completion expected in the first quarter of 2022).

Metinvest CEO Yuriy Ryzhenkov stated that Metinvest’s capital investments reached $411 million in the first half of 2021, which is 31% more than in the first half of last year.

"The environment also remained high on the agenda, as shown by our CAPEX of more than $80 million for the area. We have a large pipeline of initiatives aimed at reducing our footprint. The Group will carry on with thoughtful investments in the environmental projects in the future. In addition, during the summer, we signed memoranda of understanding with reputable international partners on working together to decarbonise the steel industry," the top manager said.