Investor Presentaiton
Appendices > Sustainable Operating Performance
Sustainable Operating Performance
supported by NLMK's resilience to rising input costs
Backwards vertical integration mitigates increasing cost inflation
Iron ore
Coke
Self-sufficient in iron ore (except iron ore pellets)
Plan to develop a pelletising plant on Stoilensky GOK with 3 m tpy capacity,
which would cover 60% of NLMK's requirements
> 100% self-sufficient
Scrap
Coking coal
Own scrap collecting facilities allow substantially cover scrap
requirements
No integration in coking coal mitigated by the positive correlation
between steel prices and coking coal prices and Altai-koks' strategic
location near Russia's main coking coal mining area (Kuzbass Region)
Potential project to develop the Zhernovskoe-1 coal mine by 2011 with
reserves estimated at 240 m t, covering 22% of needs
Energy
43% self-sufficient at the Lipetsk site
Plan to increase the self-sufficiency to 60% by 2012
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