Metinvest aims to provide Europe with green iron ore

Metinvest Group is committed to providing Europe with environmentally friendly iron ore to support the transition to green steel production. The company has all the prerequisites for investing in capacity and is implementing a number of modernization projects. This was discussed at the International Conference on Ukraine’s Recovery (URC2024) in Berlin, according to Dmytro Nikolayenko, Metinvest’s Chief Commercial Officer.

«The Ukrainian Recovery Conference in Berlin has put forward many innovative ideas for the future of the Ukrainian economy. “Metinvest is committed to bringing these ideas to life by leading the initiative to ensure Europe’s transition to green steel production using environmentally friendly iron ore,” he said.

The key prerequisites for investing in the group’s assets are large reserves of magnetite ore, which ensure sustainable DRI/HBI production, long-standing expertise in iron ore production, green transformation, strategic positioning, and proximity to Europe.

The company is currently focused on the following current and future projects:

• Modernization of the enrichment facilities of the Northern Mining and Processing Plant (Northern GOK). Focus: production of high-quality iron ore concentrate for DR pellets.
• Modernization of the pelletizing plant at Northern GOK. Focus: improving pellet quality and equipment productivity.
• Construction of DR pelletizing facilities. Focus: expanding capacity to meet the growing demand for high-quality iron ore.
• Construction of DRI/HBI production facilities. Focus: construction of up to 3 new units with a total capacity of 7.5 million tons per year. Initially, the units will operate on natural gas, and in the future they will switch to hydrogen.

«As Metinvest implements these ambitious initiatives, we are seeking support from international financial institutions and welcome partnerships in supply agreements. Together, we can pave the way for a greener and more sustainable future,” summarizes Dmytro Nikolayenko.

As GMK Center reported earlier, in 2023, Metinvest increased its output of commercial iron ore products by 18% y/y – to 9.35 million tonnes, including a 14% y/y decrease in concentrate – to 4.07 million tonnes and a 66% y/y increase in pellets – to 5.28 million tonnes. Most of the products were exported to the EU market.

Last year, UAH 2.3 billion was invested to maintain the production facilities of the Central, Ingulets and Northern mining and processing plants. The investments were directed to projects to improve productivity and product quality, ensure stable operation of key equipment, and reduce the cost of iron ore production.

This year, Metinvest plans to invest $320 million in capital and about $350 million in operating investments in equipment and work sites (steel and mining facilities).