MOSCOW, March 19, 2013 /CNW/ - International Iron Beneficiation Group
Limited (IIBG), an affiliate of OAO Severstal, one of the world's
leading vertically integrated steel and steel-related mining companies,
has launched a preliminary feasibility study to consider the viability
of building a granulated iron facility in Sydney, Nova Scotia, Canada.
Currently, the locations under active consideration in North America are
Sydney, Nova Scotia, Sept-Îles, Quebec (Canada) and sites in Minnesota,
Kentucky and Indiana (USA).
These locations would use an innovative process developed by the
International Mineral Beneficiation Services (IMBS) based in South
Africa. The IMBS process converts superfine iron ore into metallic iron
units without the need for agglomeration. The final product would be
used for steel production mostly in electric arc furnaces as effective
substitute for scrap. The IMBS process is cost efficient and has lower
environmental impacts than traditional processes.
The decision on whether the locations under consideration will be
developed and in what sequence within the context of an overall North
American strategy will depend on the results of the respective
feasibility studies and successful launch of the first commercial plant
utilizing this technology in Phalaborwa, South Africa.
The Phalaborwa operation and the proposed North American operations
would implement the IMBS process. IMBS is leading the Phalaborwa plant
construction, where Severstal holds a 33% stake.
"IIBG emphasizes at this time that the company is conducting the
necessary due diligence to determine the feasibility and priority of
potential sites. IIBG cautions and confirms that no final commitments
can be made at this very early stage of the business development
process", - commented Dmitry Solomin, CEO, IIBG.
The feasibility study for Sydney, Nova Scotia will be initiated first to
be followed by investigation of few other sites during the course of
2013. A decision on whether to proceed with a project and its sequence
will be made at the completion of these studies.
IIBG will provide additional updates to the public as appropriate.
ОАО Severstal is one of the world's leading vertically integrated steel and steel
related mining companies, with assets in Russia, the USA, the Ukraine,
Latvia, Poland, Italy, Liberia and Brazil, founded in 1993. Severstal
is listed on MICEX-RTS and the company's GDRs are traded on the
LSE. Severstal reported revenue of $14,104 million and EBITDA of $2,119
million in 2012. Severstal's crude steel production in 2012 was 15.1
million tonnes. Chief Executive of OAO Severstal - Alexey Mordashov. www.severstal.com
SOURCE: Severstal Group (OAO Severstal)
For further information:
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Severstal Public Relations
T: +7 (495) 926-77-66