Metalloinvest can invest up to $5.8 billion into development through until 2023

Metalloinvest of Alisher Usmanov, the second company in the world in terms of iron ore reserves, can invest up to $5.8 billion in its development through until 2023, increasing the share of products with high added value against the background of continuing low prices for iron ore. This was announced by general director of Metalloinvest Andrei Varichev before the presentation of the renewed development strategy of the company through until 2023.

Iron ore prices continue to fall from the peak levels of 2013, while the supply of ore on the world market by mining giants - BHP Billiton, Vale and Rio Tinto - increases. According to analysts of Deutsche Bank, in 2015, the world consumption of iron ore will fall for the first time since 2009, surpluses is projected on the market.

"The price dynamics, which we saw in late 2014 with iron ore, defined our priorities for investment. Now the task is to increase the share of products with high added value, increase the product quality and operational efficiency," - said Varichev. According to him, capital expenditures will depend on market conditions and are expected in the amount of no more than $600-700 million per year.