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Severstal to invest 43B rubles across operations in FY'17

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Severstal to invest 43B rubles across operations in FY'17

Steel-focused Russian miner PAO Severstal plans to invest approximately 43 billion Russian rubles across its operations in 2017, focusing on increasing production of high-value-added products, cost control and enhancing safety and customer care.

Severstal's Russian Steel division will see an investment of approximately 26 billion rubles. The figure includes 13.9 billion rubles for maintenance as well as environmental and health and safety projects, with 12.1 billion rubles earmarked for development including upgrades at the Cherepovets steel mill.

The group plans to invest about 17 billion rubles in its Resources division this year, comprising 8.4 billion rubles for asset development and 8.6 billion rubles for the maintenance of coal and iron ore operations.

The company on Feb. 1 said it will implement a new multifunctional safety system at its Vorkutaugol coal mines, which will allow it to locate staff and equipment across the operation in real time and improve the monitoring and control of gas emissions. Severstal will also continue to invest in improving stripping at the site.

Severstal recently reported that its crude steel production in 2016 increased 2% to 11.6 million tonnes, with hot metal output improving 1% to 9.3 million tonnes. Consolidated steel product sales as well as sales of steel from the Russian Steel both dropped 1% in 2016, on a yearly basis, to about 10.7 million tonnes each.

As of Jan. 31, US$1 was equivalent to 59.94 Russian rubles.