OREANDA-NEWS. Severstal (“Severstal” or “the Company”), one of the world’s leading vertically integrated steel and steel-related mining companies, announces that it plans to invest USD 1.3 billion in 2013 to support its growth and long-term competitive strategy.
 In 2013, planned investment at each division is as follows:


 - Severstal Russian Steel: USD 704 million
 - Severstal Resources: USD 525 million
 - Severstal North America: USD 107 million including USD 60 million invested in the maintenance program.

Investment at Severstal Russian Steel

Investment in development projects at Severstal Russian Steel will total USD 268 million, and will include: completing the construction of a long product mini-mill in Balakovo in the Saratov Region; constructing and developing specialized steel service centers, including a steel service centre in Vsevolozhsk near St Petersburg; completing the construction of the second phase of Severstal-Gonvarri-Kaluga; modernizing operations and expanding the production portfolio at the Izhora Pipe Mill, and; reconstructing and modernizing operations at Orel plant (Severstal Steel Solutions).

USD 106 million will be invested in IT projects at the division, while environmental projects will receive USD 74 million investment. USD 22 million will be invested in social projects, including the Severstal housing program.

Investment in the division’s maintenance program, including health and safety projects, will be USD 234 million.

Investment at Severstal Resources

Investment in development projects at Severstal Resources will total USD 210 million, and will include: constructing inclined shafts at the Zapolyarnaya and Vorgashorskaya mines, (part of Vorkutaugol); increasing production capacity at the Pechorskaya Preparation Plant (part of Vorkutaugol); development of the Usinskoye deposit; geological exploration at Olkon, and expanding iron ore mining operations.

 Investments in greenfield mining projects will not exceed USD 46 million and will include USD 40 million invested in the feasibility study for the Putu project in Liberia.

USD 158 million will be invested in the maintenance of coal production operations, and USD 111 million will be invested in the maintenance of iron ore production operations.


 Alexey Kulichenko, CFO of Severstal, commented: “In 2013, Severstal will continue to invest in its long term development, with a primary focus on our Russian steelmaking and mining assets. We adopt a prudent approach to our capital expenditure, adjusting investment to market conditions and not raising new debt funds.”