The plant, which is designed to annually produce 700,000 metric tons of extruded briquettes, will recycle blast furnace dust and sludge, ultimately reducing pig iron production costs.   

"The new facility will enable NLMK to employ the entire volume of blast furnace sludge generated as raw material, as well as to start recycling previously accumulated sludge, reducing its environmental footprint. This plant is just one of a whole range of efficient waste recycling projects in our pipeline," said Konstantin Lagutin, NLMK Group’s vice president for investment projects. 

The company said using the waste briquettes will reduce iron ore pellet consumption by 9% and coke consumption by 3%. All told, the company expects to see a 2% reduction in pig iron production costs. 

The plant’s foundation is being laid now. Construction is to be completed in late 2018. 

U.S.-based J.C. Steele & Sons Inc. is supplying the plant's sitff extrusion line.