OREANDA-NEWS. March 07, 2012. METALLOINVEST, one of the leading global iron ore and HBI producers based in Russia, (“the Company”) today announced that it signed Social Partnership Programme for 2012 (“the Document”) with the Administration of Kursk Region and Zheleznogorsk Town Administration within the framework of the Social Partnership Agreement. The Document was signed by Eduard Potapov, METALLOINVEST’s CEO, Alexander Mikhailov, Governor of Kursk region, and Viktor Solntsev, Mayor of Zheleznogorsk.

The Document stipulates mutual commitment of the parties regarding priority investments for social development of the region and the town, where one of the key METALLOINVEST’s plants, Mikhailovsky GOK (“MGOK”). operates. Specifically, within the framework of the partnership, the Company’s investments in social projects in 2012 are expected to amount to RUB 240 million. In 2011, the Company spent RUB 205 million for such projects.

Moreover, in 2012, METALLOINVEST plans to invest over RUB 820 million in Mikhailovsky GOK’s social programmes, whilst last year the Company invested RUB 770 million. MGOK’s tax and other payments to regional and local authorities totalled RUB 5.9 billion in 2011.

Alexander Mikhailov, Governor of Kursk Region, commented: "Partnership with METALLOINVEST implies a structured approach to initiatives aimed at the region’s sustainable development. This approach allows us to successfully accomplish our social tasks. In 2011, the Company fulfilled its obligations under the Agreement, and I am confident that our partnership will continue bringing positive results.”

Viktor Solntsev, Mayor of Zheleznogorsk, noted: "Over many years, METALLOINVEST has supported us in solving the town’s urgent issues: opening new sport facilities and medical centres, supplying equipment to schools and nurseries and repairing roads. Signing the Social Partnership Agreement allowed us to receive more tangible and targeted support. Last year, we reconstructed Nursery No.22, started construction of a branch clinic of the Kursk Cancer Centre, built new children playgrounds, and opened a memorial to the soldiers of Internationalist Corps. We currently have a number of new projects in the pipeline, and METALLOINVEST’s participation reassures us that these plans will be implemented.”

Eduard Potapov, Chief Executive Officer of METALLOINVEST, commented: “Creation of a comfortable working environment and living conditions is our priority. Therefore we pay a lot of attention to the development of regions where we operate. In addition to providing financial support to regional development projects, METALLOINVEST engages its management and intellectual resources in implementation of social programmes. By joining efforts with Zheleznogorsk and Kursk Region, we can make a greater contribution to the region’s sustainable development.”

Sergey Kretov, Managing Director of Mikhailovsky GOK, added: "Mikhailovsky GOK has always been focused on the region. MGOK regularly participates in the local social projects. Our cooperation with the local authorities in social and economic spheres is aimed at the region’s balanced development, which will provide for the stable future both of the region, and the Company. We have identified a new scope of work in this area, and are well on track to deliver it according to the plan.”

The Program involves activities aimed at the developing and strengthening the financial and economic position of Zheleznogorsk municipality, improving of child health care in Zheleznogorsk within the framework of the Healthy Child Programme, and building modern medical facilities for prevention and early diagnostics of cancer.

The Social Partnership Programme created on the basis of the Agreement signed in February 2011, presents a transition to a structured and targeted cooperation in implementation of the key stages of the regional development.