OREANDA-NEWS. Metalloinvest has entered the active phase of construction and installation works for the third hot briquetted iron plant (HBI-3 Plant) at Lebedinsky GOK in Gubkin, Belgorod region. The plant will have an annual production capacity of 1.8 million tonnes and will be the largest HBI production facility in the world.

A consortium comprising Siemens VAI and Midrex is the main equipment supplier and will also complete the necessary automation of the first and second stages. The Urban Institute of Steel Plant Design, part of Metalloinvest, is also involved in the implementation of the project.

The total investment in the project amounts to approximately USD 850 million (based on 2013 prices and rouble currency rates). The construction of the new plant will allow the Company to strengthen its position on the global high added-value iron ore resources market.

HBI has a metallisation degree of more than 90% and a density exceeding 5.0 g/cm3, which makes it the ideal material for steel production both in electric-arc furnaces and converters. Due to their low impurity content, briquettes are well-suited to transport by rail or sea. HBI production is twice as energy-efficient as hot iron production, giving it significant competitive advantages. As such, HBI is a more environmentally-friendly product: during production, greenhouse gas emissions are almost twice as low as the traditional blast furnace method.