Metalloinvest
Annual Report 2019

Business model

The existing business model, which places a special emphasis on high value-added products, helps retain the Company’s leading market position and provides it with various important advantages.

Metalloinvest has sound financial indicators and a stable profit margin.

Metalloinvest has a high level of vertical integration and a high degree of raw materials processing: pellets and HBI account for 72% of total shipments of iron-ore products, while steel products with high-added value make up 41% of all metallurgical shipments.

The Company is a supplier with a diversified customer base and a focus on emerging markets:

  • direct sales to the largest global steel producers
  • g ood logistics
  • The Company’s strengths:
  • the second-largest iron reserves in the world
  • a long reserve life
  • access to developed infrastructure and relatively cheap energy
  • energy-efficient technologies
  • low production costs for pellets and HBI/DRI
  • an open approach to introducing improvements and innovations
  • a strong management team capable of ensuring growth
  • Key drivers of success:
  • a unique resource base
  • the favourable geographic location of main production assets close to key product markets
  • low production costs
  • an extensive sales territory

We review and consider the needs of all our stakeholders
To meet these needs we have adequate resources in place:

  • Internal resources:
  • Personnel and strong management team
  • Reserves
  • Industrial assets
  • Four mining and steel production enterprises in European Russia, as well as auxiliary business
  • Technology and innovation
  • Assets
  • External resources:
  • Suppliers of goods and materials (equipment, materials, fuel, etc.)
  • Research and engineering centres
  • Financial institutions
  • Debt market
Resources and reserves
Iron ore mining
Production
Iron-ore
concentrate
Pellets
HBI/DRI
Pig iron
Steel
Shipment
Сommercial
iron-ore
concentrate
Pellets
HBI
Pig iron
Steel
products
Customers
Metallurgy
Mechanical
engineering
Pipe industry
Shipbuilding
Automotive
Bridge
construction
Construction
Metalloinvest has a high level of vertical integration and a high degree of raw materials processing
  • Key drivers of success:
  • a unique resource base
  • the favourable geographic location of main production assets close to key product markets
  • low production costs
  • an extensive sales territory