USM Holdings invests in metals and mining industry. It fully owns Metalloinvest, a leading global iron ore and HBI producer and supplier, and one of the regional steel producers.
Metalloinvest is the largest metals and mining company in Russia and the CIS. The company has the second-largest measured iron ore reserve base in the world (c.14.6 billion tonnes). The company is the world’s leading merchant HBI (hot briquetted iron) producer and third-largest producer of pellets. Metalloinvest’s main production assets are located in the European part of Russia and the Urals.
The company is organised into two integrated operating segments: mining and steel. The mining segment comprises Lebedinsky GOK and Mikhailovsky GOK, and the steel segment includes OEMK, Ural Steel and Ural Scrap Company. In addition to its mining and steel businesses, Metalloinvest owns auxiliary companies and other assets that service the mining and steel industry.
Lebedinsky GOK is the leading Russian company focused on the extraction, beneficiation and treatment of iron ore. It has the largest iron ore reserves in the world and is the sole producer of HBI in Russia and the CIS. Recently, Metalloinvest has started the construction of a third HBI plant with an annual production capacity of 1.8 million tonnes at Lebedinsky GOK. This plant will be the largest HBI plant in the world.
Mikhailovsky GOK is the number two iron ore extraction, processing and pellet production operation in Russia, second only to Lebedinsky GOK. In 2015, Metalloinvest intends to finish construction of the country’s largest pellet plant, with a capacity of five million tonnes a year at Mikhailovsky GOK.
The two GOKs’ production capacities allow Metalloinvest to occupy the leading position in Russia and the CIS.
OEMK is one of the most modern fully-integrated steel mills in Russia, employing technology for the direct reduction of iron and electric arc furnace smelting, which enables the company to extract metal practically free from harmful foreign substances and residual elements. The unique properties of OEMK’s steel and finished products have ensured stable demand for them in the local market and worldwide. OEMK is located close to Lebedinsky GOK, which supplies it with high-grade iron ore concentrate through a 26-kilometre slurry pipeline. OEMK sells its products to engineering, automotive, pipe, hardware and bearings industries in Russia and abroad.
Ural Steel is a fully-integrated iron and steel works, including coke blast furnace, steelmaking and rolling production. Its main products are merchant pig iron, pipe billets and strips, as well as bridge construction steel and heavy plates. The plant is a leader in niche product markets.
Ural Scrap Company purchases, processes and delivers ferrous scrap to Metalloinvest’s steel segment enterprises.
Metalloinvest is the first Russian company in the ferrous metallurgy sector to register its products under REACH; all of the company’s enterprises meet ISO 9001, ISO 14001 and OHSAS 18001 standards.
Metalloinvest owns a stake in Norilsk Nickel, the world’s largest producer of nickel. The company is also a leading producer of palladium, platinum and copper.
Metalloinvest is the largest shareholder in Canadian company Nautilus Minerals. Nautilus Minerals undertakes commercial seafloor exploration, searching for large sulphide deposits, which are a potential source of copper, gold, zinc and silver ore with high metal content. The company is developing the world’s first seafloor copper-gold project in the territorial waters of Papua New Guinea.
Metalloinvest fully owns Baikal Mining Company, which controls a significant proportion of Russia’s total copper resources. It develops the Udokan copper deposit, one of the world’s largest undeveloped deposits of copper, with reserves of c. 26.7 million tonnes according to JORC international standards.