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The Company’s key environmental protection goals are detailed in the Corporate Social Responsibility and Charity Policy. Each of the Company’s enterprises has its own environmental policy setting out its environmental protection priorities.

Metalloinvest’s main environmental principles:

  • Compliance with all environmental requirements and standards set out in applicable laws;
  • Improving the environmental performance of the Company’s production processes;
  • Considering environmental requirements in investment policies when developing production upgrade and expansion projects;
  • Regular monitoring of the environmental impact of operations;
  • Sustainable and efficient utilisation of natural resources and production waste disposal;
  • Systemic training, education, and involvement of personnel in addressing environmental protection issues;
  • Employee compliance with environmental standards and regulations;
  • Educating stakeholders on the environmental protection activities at the Company’s plants.

Metalloinvest’s enterprises are guided by the requirements of both Russian and international standards for environmental management systems. The Company carries out ongoing environmental monitoring as part of its industrial environmental control processes and regularly upgrades the equipment at its laboratories to maintain the quality and accuracy of measurements.

Every year, Metalloinvest channels significant funds towards equipment upgrades, installation of state-of-the-art filters and gas and water treatment systems, and land recultivation. Tests run by independent laboratories confirm that the environmental impact resulting from each of the Company’s plants is significantly lower than the maximum permissible levels. The efficiency of the Company’s environmental protection efforts is proved by ISO 14001 compliance certificates for the environmental management systems at Metalloinvest’s enterprises, which are confirmed on a regular basis.

Integrated Environmental Management System

The Company has in place a two-tier environmental management system. The Chief Operating Officer and the Environment, Health, and Safety Division are responsible for decisions made at the Management Company level, with chief engineers and environmental protection teams coordinating their environmental protection efforts on the ground, at the enterprise level.

Environmental Protection Initiatives

As part of its environmental protection efforts, Metalloinvest’s enterprises seek to maintain full compliance of their production facilities with Russian laws and are committed to studying and adopting best practices for environmental management and innovative technologies. A number of activities to support these goals were run at the Company’s enterprises in 2017, the Year of Ecology in Russia.

Key environmental protection initiatives in 2017
Lebedinsky GOK
  • The design documents for the industrial waste landfill facility project received a positive assessment from FAI Glavgosexpertiza of Russia (Glavgosexpertiza), a Russian non-profit organisation dedicated to promoting high standards in the Russian infrastructure and construction sectors. The project focused on the expansion of the existing landfill facility area.
  • The plant’s tailings facility, covering 881.1 hectares, was treated with a solution that strengthens dusty surfaces
  • Biological recultivation activities were carried out, with the planting of acacia saplings and grass on 40 hectares of loose rock waste dumps and the tailings facility area
  • Regular hydro dust control activities were carried out at mining pits, roads, and finished product warehouses (total area of roads covered was 214.1 hectares, with 2,100 cubic metres of bischofite used)
Mikhailovsky GOK
  • Design and survey works were completed for the Water Recycling System for the Crushing and Sorting Plant project
  • A dust collection system was installed and commissioned at transfer points of the pelletisation plant’s open storage facilities
  • Design and survey works were completed for the technical re-equipping of the pelletisation plant and upgrade of the dust collection system at transfer points of the open storage facilities
OEMK
  • Phase 2 of the recultivation of the landfill facility was completed with clay soil across an area of 2.5 hectares, and a waste landfill facility was commissioned with a service life of at least 10 years and a capacity of 1 million tonnes (with a potential to further increase capacity to 2.2 million tonnes). The project investment totalled over RUB 200 million
Ural Steel
  • A feasibility study was carried out for the plant’s projected sanitary protection zone, taking into consideration plans for the facility’s expansion for the period through 2022 A positive assessment was obtained from disease control and prevention authorities, certifying the project’s compliance with regulations
  • An industrial waste landfill facility was commissioned with a service life of at least 25 years. The project investment totalled over RUB 160 million

Total expenditure and investments
in environmental protection
RUB million

In 2017, all Metalloinvest enterprises underwent an audit for the compliance of their environmental management systems with the requirements of the following standard: ISO 14001 Environmental management systems – Requirements with guidance for use.

Sustainable Waste Treatment

A large amount of industrial waste results from iron ore production and processing: waste rock, overburden, tailings, sludge, ash and slag, substandard materials, slag from steelmaking and blast furnace operations, and iron sludge. Over 98% of the generated waste has almost no impact on the environment and is considered a class 5 hazard (practically non-hazardous waste).

In accordance with the regulations on minimising environmental impact, the waste generated from mining and processing operations is treated at the Company’s plants or stored at the Company’s waste disposal facilities.

Other waste, primarily from steel production, is transferred to dedicated contractors for further treatment.

Waste generated in 2017 declined by 0.8% year-on-year to 128.1 million tonnes, while air pollution emissions from stationary sources went down by 3.6% to 113,000 tonnes.

Total atmospheric emissions from stationary sources
‘000 tonnes
Waste disposal methods in 2017
%
Total waste generation, collection and disposal
million tonnes

Energy Consumption and Energy Efficiency Improvement

Energy efficiency improvement is a vital part of Metalloinvest’s operations.

The Company has developed and is implementing its strategy for improving energy efficiency by 2020, used by each enterprise as a base for developing an annual plan encompassing technical, technological, and organisational activities aimed at reducing production costs and increasing production competitiveness.

Activities to support monitoring power consumption at every stage of the production process and preventing equipment failures and accidents:

  • Upgrading production and support facilities
  • Implementing new technologies
  • Replacing obsolete equipment (pumps, boilers, engines, and compressors)
  • Installing electricity meters

The Company’s enterprises mostly use natural gas as fuel, the cleanest-burning source of energy. The Company also consumes fuel oil, coking coal, diesel fuel, and electricity.

Electricity consumption
‘000 GWh

Ural Steel has its own thermal power plant (TPP), providing more than 50% of the enterprise’s energy needs. In addition to power and heat (steam and hot water) for Ural Steel, the TPP provides heating for housing in nearby Novotroitsk to supplement public utilities. Ural Steel’s own generating capacity guarantees the energy security of the enterprise, ensures the most efficient use of available energy resources and associated gases from steel production, and helps reduce emissions.


In 2017, energy consumption grew by 2.8% year-on-year, driven by the growing production at Lebedinsky GOK, Mikhailovsky GOK, and Ural Steel, while power consumption at OEMK decreased slightly due to reduced energy consumption as a result of equipment upgrades.

Energy management systems at all of the Company’s key enterprises are undergoing certification. OEMK confirmed the compliance of its energy management system with the ISO 50001 standard in December 2017.

Water Use

Metalloinvest puts a strong emphasis on reducing its water intake while increasing its use of recycled and reused water. Metalloinvest seeks to reduce its water intake from external resources by implementing various activities, including production upgrades. The total water intake volume in 2017 decreased by 0.8% year-on-year while the volume of recycled and reused water increased by 3.5% through the introduction of new production technologies. In particular, Ural Steel increased its water reuse levels by 6.5% by implementing a new water recycling system.

Total water intake
million m3
Total water recycled and reused
‘000 m3