In the new role, Sergei Napolskikh will continue to implement the operational efficiency improvement program that is part of NLMK Group’s Strategy 2017, and investment projects, including the construction of the largest in Europe pelletizing plant with a capacity of over 6 million metric tons per year. The plant will allow considerably reducing Novolipetsk’s raw material costs. It is currently in the active phase of construction, with launch planned in 2016.
 
The position of Stoilensky general director was previously held by Yuri Larin, who combined this role with being member of the NLMK Management Board and NLMK Group vice president, technology development & operational efficiency.
 
Yuri Larin became head of Stoilensky in April 2014 to activate a large-scale program aimed at improving the Company’s operational efficiency. The program was launched at Stoilensky in March 2014. Through debottlenecking, as early as the end of the year, the company’s beneficiation capacities increased by 1 million metric tons to 15 million metric tons.
 
Going forward, Yuri Larin will focus on developing the operational efficiency programs at Group levels, including the implementation of NLMK Production System; and on rolling out these programs to the Group’s international companies.
 
In 2013, the cumulative effect of operational efficiency programs at NLMK Group companies on EBITDA totaled US$235 million to 2012 level. In 9M 2014, the effect was US$183 million to 2013 level.
 
Sergei Napolskikh joined Stoilensky in April 2014. Until March 2014, he was managing director of EVRAZ Kachkanarsky Ore Mining and Processing Plant (EVRAZ KGOK). From 2006 to 2010 he was chief engineer, managing director of Vysokogorsk Mining and Beneficiation Plant. He started his career in 1983 at the Abansk Coal Mine as a mining surveyor. He graduated from Moscow State Open University, specializing in mine surveying. In 2009, he received the Miner of Russia golden award, and in 2013 he was honored with the Urals Mining Award for his contribution to the development of mining in the Ural.
 
Stoilensky (part of NLMK Group) is one of the three leading Russian iron ore mining companies. The company accounts for over 15% of Russia’s total iron ore production. In 2013, Stoilensky produced 14 million metric tons of iron ore concentrate (66% Fe content); and 1.5 million metric tons of sinter ore.
 
Stoilensky is unique in combining high efficiency with low production costs and the very highest production quality. Its main products are iron ore concentrate and sinter ore. Its commercial reserves are around 5 billion metric tons.
 
NLMK Group’s Strategy 2017, announced in February 2014, is focused on unlocking the internal potential of the Group’s businesses by boosting operational and process efficiency and increasing self-sufficiency in its main raw materials. The strategy is aimed at developing a world-class resource base for the Group by increasing self-sufficiency in iron ore with a flexible feed structure to 100% (pellets, sinter, sinter ore) and reducing consumption of valuable resources.
 
As part of Strategy 2017, the largest pelletizing plant in Europe is being built at Stoilensky with a capacity of approximately 6 million metric tons of iron ore pellets per year. The program will also involve increasing production of iron ore concentrate by 0.5–1 million metric tons per year through streamlining operations, constructing new ore production facilities and increasing the mine’s capacity.