NLMK to review investments into iron ore production

NLMK may reconsider plans to extend an open-cast mine and capacity of iron ore dressing at the Stoilensky GOK, NLMK’s CEO Oleg Bagrin reported. Before 2017, the company is going to invest $680 million in the production increase and $650 million in the construction of a pelletizing plant, not to buy these products from Metalloinvest.

But the price of iron ore fell below forecasts. At the end of the previous year, it was $130 per 1 ton. The budget was formed given the conservative price of $90, Bagrin said: "But the drop to $75 was a surprise for the market". Nevertheless, the plant will be completed (it is already under construction), the effect of the replacement of third-party for EBITDA (in the nine months of 2014 - $1.7 billion) will be $150 million per year, he assessed.