Russia Metals and Mining

Is creation of state aluminium fund just round the corner?

UC Rusal expects that decision on state aluminium fund will be made by the end of March and purchases for the fund may start from July-August, Rusal’s first deputy general director Vladislav Solovieb stated.
In November of 2013, Vice Prime Minister Arkady Dvorkovich reported about order of the Russian Prime Minister Dmitry Medvedev to go into the issue of creation of a state aluminium fund in the country.

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Who supplies the stainless steel into Russia?

In 2013, compared with 2012, the volume of Russian imports of the main types of stainless steel products increased by 5.1 % to 251.6 thousand tons. Stainless steel is imported from 42 producing countries. In 2013 the total cost of Russian importers was $ 830.8 million (+2.8 % to 2012).

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Russian copper company appoints new general directors for GOKs in the Chelyabinsk region

The Russian copper company has decided to change the leadership of mining and processing enterprises in the Chelyabinsk region.
Alexander Sizikov was appointed general director of the Mikheevsky GOK, replaced Valery Ulanovsky. Sizikov works in the company since 2008.
Since 2010 he headed the group’s subsidiary in Kazakhstan – Aktobe copper company.

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Rinat Akhmetov to increase mining at Russian mines 1.5 times

In 2014, mine administration Obukhovskaya and Donskoi antratcit (the Rostov region), which are parts of Ukrainian energy holding company DTEK, plan to mine 2.1 million tons of coal, the DTEK’s press centre reported.
“In 2014, Obukhovskaya and Donskoi antratcit must increase the coal production to 2.1 million tons and pass 11 km of mine roadway,” – the press centre said.

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Steel self-control.Interview with the president of NLMK Oleg Bagrin

~~The president of NLMK Oleg Bagrin - why to increase investment in a crisis.
There is a downswing in the steel industry. Many companues are mired in debt and can not get out because of low prices for their products. UC Rusal has stopped several plants, the Evraz Group announced the conservation of the Claymont Steel plant in the U.S. and put up their Czech and South African companies up for sale. But the Novolipetsk Steel (NLMK) headquarters is increasing their investment. In 2013, the analysts of World Steel Dynamics placed NLMK fourth in the ranking of the most efficient steel companies in the world. The president of NLMK Oleg Bagrin told about the ways to improve competitiveness and to count on in a changing economic environment in an interview with "RBK".
The competitors did not leave us behind.
Last year the Russian market showed a rather interesting phenomenon: a record high volume of steel consumption amid slowing economic growth. What is the reason?
Here, as in the world, the picture is heterogeneous. If you look at the structure of consumption, you can see a serious drop in demand in certain sectors in 2013: 15% in engineering, 20% in the automotive industry. The infrastructure and construction remain a source of demand growth, which stagnated from 2008 to 2010. Now the market returns to its long-term trajectory. Commercial real estates, housing are put in place, new projects are implemented. Hopefully, the positive trend will continue.
The Ministry of Economic Development estimated that this year's steel companies will be able to reduce costs by about 133 billion rubles by limiting the growth of tariffs of natural monopolies. How much is it really possible to save?
The consumers will receive no cost reduction due to the rates freeze. The additional costs just would not appear. Freezing rates does not mean that the company generates revenue, it means that money, taken out of its pocket, will be no more than today.
But would there be any savings?

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Rostov coal company may be sold

Ukrainian Zaporozhstal considers possibility to sell Rostov coal company.
As the Rostov region’s Minister of Industry and Energy Alexander Grebenshikov told at the press conference in the Interfax, one of the company’s owners stated at the meeting in the Ministry of Energy that he wasn’t interested in the project at this stage, but the final decision on its fate hasn’t been made.

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Mine of Yuzhkuzbassugol launches new longwall face with reserves of 3 million tons

The Erunakovskaya-VIII mine of Yuzhkuzbassugol (an asset of Evraz Plc) has launched a new longwall face with reserves of about 3 million tons of coke coal, Evraz reports.
The longwall face launch marked completion of the Evraz’s investment project on construction of the this mine, which started to work in February of 2013, the company notes.

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In 2013, Russia decreased export of scrap metal by 15%

According to the Russian State Statistics Service, in 2013 export of scrap metal declined by 14.6% to 3 710 thousand tons against 4 430 thousand tons in 2012.
The largest importer of Russian scrap metal became Turkey, which bought 1 930 thousand tons that is by 9.9% less than in 2012. At the same time, the export of Russian scrap metal to Turkey made up over 52% of the total volume.

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Metallurgy of the Black Earth region

Traditionally metallurgy is the most sensitive industry to the crisis in the economy and it is the first, which responds to negative news. And as the largest enterprises in the Black Earth region are metallurgical enterprises (structures of NLMK and Metalloinvest), their problems can wither regional budgets, and even threaten social tensions. Metallurgists don’t have illusions about the fast economic recovery and even don’t hope for the state support, adhering to the principle that if you’re drowning, you’re on your own.
Today global problem of the industry is overcapacity. According to experts, it is about 500 million tons, while the total consumption in the world is 1.5 billion tons. At the end of 2012, market participants expected that metal products prices finally reached the bottom and would begin to grow in 2013. However, this didn’t happen. A similar situation is observed in Russia, but the situation is fixed by the fact that there is a foundation for the growth of the market, such as the lack of accommodation: 23 square meters of accommodation fall per head of population in Russia, and about half of it is old housing stock. For comparison, this rate is 67 square meters of housing in the USA. Meanwhile, the Russian economy is in stagnation and we can’t expect improvement in the short term.
However, there was enough high (as far as possible in the current situation) demand for steel due to the construction sector in the most part of last year. That's why in general the results of the Black Earth Region’s metallurgical companies were not so bad in the past year against the background of poor market conditions, results of their Russian colleagues. For example, the increase in demand from the construction industry allowed NLMK to increase sales of steel in the domestic market by 17% to 3.8 million tons in the previous year. As it is known, the main part of NLMK's steel capacity is located in Lipetsk. On the whole, in 2013 the Lipetsk enterprise’s metal production remained at the level of the previous year (12.1 million tons), and the rate of the steel production grew a little: by 1.8 % to 12.4 million tons.

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The Bystrinsky Mining and Beneficiation Complex can earn in 2016.

Konstantin Ilkovsky, the Governor of Zabaykalsky Krai, and Sergey Dyachenko, the Deputy General Director of "Norilsk Nickel", visited the newly built Bystrinskiy Mining and Beneficiation Complex. The start-up of the enterprise with initial capacity of 5 million tons of ore is planned for December 2016. According to the plan, in 2017 the level of processing will be set on the level of 10 million tons, said Oleg Polyakov, the Minister of Natural Resources and Industrial Policy of Zabaykalsky Krai.
According to him, the regional head and deputy head of "Norilsk Nickel" praised the progress. "All the main processes - the construction of the sites, roads and storage facilities - are on time," - Oleg Polyakov stated.

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