OAO Severstal, a leading Russian steel and steel-related mining company, announced a series of environmental improvement projects at the Cherepovets Steel Mill (CherMC) aimed at ensuring global best practice sustainability standards are in place by 2015. In 2012 alone, the Severstal’s investment target in respect of these projects is approximately 1 billion rubles (US$32 million), with targeted total investment to 2015 amounting to 5.5 billion rubles (US$176.6 million).

"One our major focuses is to reduce inorganic particulate and hydrogen sulfide emissions into the atmosphere," said Anton Koltsov, Head of Health & Safety and Environment for the Severstal Russian Steel Division. "Currently, these two pollutants represent our greatest challenge, but our investment projects in this area will help the Cherepovets Steel Mill decrease emissions of these substances to a minimum."

Severstal has presented three major projects intended to reduce inorganic particle emissions from steelmaking. They include: an installation for removing harmful emissions from converters #1-3 at a cost of c.3.6 billion rubles; a c.850 million rubles investment to reconstruct gas treatment units at the #2 blast furnace; and the reconstruction of the #7 rotary furnace in the lime roasting plant which will cost c.340 million rubles.

Furthermore, the company also plans an 840 million rubles construction project aimed at cutting down inorganic particulate emissions in sinter production.

"We are investing a total of almost 5.5 billion rubles in these projects, which will be completed by the end of 2015. The result of these investment projects will be a best in class system for purifying waste gases in steel-making and sinter production." said Alexander Grubman, CEO of Severstal Russian Steel.

Severstal has also provided an interim update results from its initiatives to reduce hydrogen sulphide emissions. To this end, Severstal has partnered with the Moscow Institute of Steel and Alloys. For the three years [both parties] have worked on this project, the best global practices have been studied and emulated, and the principal emission sources have been identified at the site. Approximately 180 pilot tests and more than 2,000 measurements of sulfur compounds in the air have been performed at a special test site in the blast-furnace production area. Reducing concentrations to target levels is also planned for the end of 2015.

Furthermore, Severstal also presented projects within its water treatment program.

Since 1995, CherMC has run a closed-loop water circulation system, which includes water clearing ponds, a shared filter station, and 60 local recirculation cycles. By creating this system to re-circulate 98.65% of water used by the mill, CherMC has been able to close down 5 out of 10 wastewater outlets. By the end of 2012, CherMC will close another two outlets for snow runoff and storm water due to the 285 million rubles construction of two new pumping stations. As a result of this project, up to 200,000 cu. m of snow runoff and storm water per year will be channelled to the wastewater treatment station to then be fed back to the CherMC recirculation cycle. The use of river water to replenish recirculation cycles will therefore drop accordingly.

Severstal has also outlined a project to construct an industrial waste briquetting line to address the company’s solid waste treatment. The line, with a capacity of up to 100,000 tons of waste briquettes per year, is designed to process steelmaking waste and then use it in steel production in the form of briquettes. The construction of this line will have a double impact, decreasing steel production costs and also significantly reducing waste storage spaces. This 492 million rubles project is a key part of the wider strategic investment program.

"The company is making a sustained, extensive effort to mitigate the impact on the environment from our operations," said Alexander Grubman. "Nowadays, preventing pollution is one of our top priorities, and these projects comprise just a part of the Company’s wider environmental management initiatives. Our 2012 environmental program includes a wide range of activities - more than 40 in total - to repair gas purification, aspiration, and water treatment facilities." According to Mr. Grubman, projects are also in the pipeline to upgrade the Company’s fixed production assets, including the reconstruction of coke-oven battery (COB) No. 7, scheduled to be completed in the first quarter 2013.

Оne of the COB reconstruction milestones will be the construction of a dust-free coke unit (similar units have already been installed at three of the eight COBs, and, subsequently, will be added to the remainder). The construction of an environmental facility network and the installation of modern aspiration systems with reduce dust emissions by approximately 20%.

Severstal Russian Steel Division ranks among Russia’s leading steel producers. In 2011, its revenue was $10,547 million and EBITDA was $1,784 million. Its businesses are among the most efficient global steelmakers. The division includes the following segments: Primary Production, Repairs, Metiz, Procurement & Logistics, Sales and SMTS.

ОАО Severstal is one of the world’s leading vertically integrated steelmaking and steel-related mining companies with assets in Russia, the USA, Ukraine, Latvia, Poland, Italy, Liberia, and Brazil. Severstal’s shares are traded on the Russian MICEX-RTS trading platform, and the company’s GDRs are listed on the LSE. Severstal reported revenue of $15,812 million and EBITDA of $3,584 million in 2011. Severstal’s crude steel production in 2011 reached 15.3 million tons.