Annual Report 2019



The total environmental costs in 2019 amounted to 7.60 billion roubles, which is 5.1% more compared to 2018.

Capital expenses for the re-equipment and modernisation of treatment equipment at enterprises in 2019 amounted to 995.0 million roubles, which is 21.5% lower compared to 2018. This change is due to a decrease in plans for 2020 for the number of activities requiring capital expenses. Moreover, all Company’s enterprises comply with the requirements of the best available technologies.

Dynamics of changes in environmental protection expenses, 2017–2019,
bn roubles


RUB bn
the total environmental costs in 2019
Structure of environmental investments in 2019
Structure of environmental investments in 2019 by enterprises

The largest investment in environmental protection in 2019 was allocated to LGOK.


In order to reduce environmental impact and to improve environmental situation in the regions of the Company’s presence the Metalloinvest’s environment protection programme was initiated in June 2019 to be implemented at the level of the entire Company.


Ensuring environmental safety;


Effective use of resources;


Ensuring environmental sustainable development;


Improving environmental production processes

The future programme was based on the benchmark analysis of domestic and foreign ferrous metals companies in terms of developed environmental programmes, priority areas and environmental performance indicators.

In the process of developing the Environmental protection programme, an analysis of the environmental risks of the Company’s enterprises was performed based on the calculation of the integral quantitative assessment of possible risks associated with potential negative impact on the environment.

To calculate the integral assessment of environmental risk, a comprehensive approach was implemented that takes into account a number of criteria, including potential negative impact on stakeholders in case the environmental project is not implemented, obligations applicable to the activities of the Company’s enterprises, including legal requirements, and the forecast risk probability.

The process of identification and assessment of environmental risks covered all areas of potential environmental impacts, including exposure to atmospheric air, water resources, biological diversity of the regions of the Company’s presence, waste management activities, etc.

Based on the assessment results and taking the benchmark analysis findings into account, a list of environmental measures was prepared as regards highly significant and significant potential risks, as well as environmental performance indicators in all areas of environmental protection development. The events are planned to be held from 2020 to 2025.


Efficient use of resources and the reduction of waste generation are one of the key areas for the development of environmental protection activities of Metalloinvest. The Company focuses on increasing the share of disposal of all generated waste, including the disposal of metals and mining waste in the main production cycle.

The structure of the Company’s enterprises is a vertically integrated production. The mining segment, represented by LGOK and MGOK, produces iron ore, which is the main material resource for the metals enterprises of the Company.

The main production cycle of the Company’s metals and mining enterprises implies the use of coking coal and scrap metal in addition to iron ore as a secondary material resource. In 2019, the consumption of iron ore at metals enterprises amounted to 9.1 million tonnes, which is 3.2% less compared to 2018.

Dynamics of changes in the amount of basic material resources used for production, mln tonnes
Dynamics of changes in the total amount of reused material resource metals wastes, 2017–2019, mln tonnes
Mining waste management structure in 2019
Steel industry waste management structure in 2019
Dynamics of waste generation at the Company’s enterprises, 2017–2019, mln tonnes
Total waste treatment structure in 2019
Waste amount by hazard class and disposal methods in 2019
Waste processing223506,119506,342
Waste disposal75122,922,99122,923,742
Waste treatment175067
Transfer to outside organisations4,9652,071,9402,076,905
Disposal of wastes at operational facilities, total591102,467,948102,468,539
Metalloinvest was able to reduce the amount of waste located in the disposal facilities by

4,1 %

Increase in the volume of waste disposal by

12,1 %


Air basin protection is one of the top environmental protection priorities for metals and mining companies. Metalloinvest implements a series of initiatives at all enterprises aimed at reducing the emissions of air pollutants (including dust).

The Company’s commitment to ensure air emission control and reduction is confirmed by the use of EMS-certified production facilities and production facilities. In 2019, the total steel produced by EMS-certified production facilities amounted to 4,867.2 thousand tonnes with the number of employees and contractors working at EMS-certified production facilities reaching 19.1 thousand people.

The volume of air emissions in the reporting period amounted to 124.8 thousand tonnes (7.1% higher compared to 2018). The increase is due to new HBI plant at LGOK reaching its full production capacity.

Dynamics of the amount of air pollutant emissions, 2014–2019,
thousand tonnes
Structure of air pollutant emissions in 2019 by enterprises


Metalloinvest strives to minimise the impact of its enterprises on natural water bodies. Preserving the purity of water resources is one of the key tasks of the Company’s environmental protection activities

Although the most of the regions of presence have no shortage of water resources (excepting Kursk region) , Metalloinvest seeks to reduce the amount of water taken from various sources by implementing numerous measures including modernisation of production. The company uses special sump tanks to accumulate wastewater to be later used for technical needs.

The total volume of reusable water in the water supply systems of the Company’s enterprises amounted to 2,656.4 million m3 in the reporting period 1.2% less compared to 2018. At the same time, in 2019 the share of water withdrawn from various sources amounted to 5.8% of the volume of reusable waters.

In 2019, the Company’s enterprises collected 154.3 million m3 of water from various sources. The main objects of water intake and sewage discharge are the rivers (Oskol, Oskolets, Ryasnik, Chern, Rechitsa, Ural) and the Stary Oskol reservoir located in the regions where the plants operate. Water intake increased by 2.3% compared to 2018. This increase is associated with a large inflow of rain and groundwater.

Dynamics of changes in the reusable water, 2015–2019,
mln m 3
Structure of reusable water used in 2019 by enterprises


Metalloinvest regularly monitors the biological diversity of flora and fauna, and also provides support to institutions involved in the study and conservation of typical and unique ecological systems.

None of the active enterprises of the Company operates in protected areas or territories with high biodiversity value. Nevertheless, being aware of the importance of biodiversity conservation in the regions of presence, Metalloinvest performs regular monitoring of flora and fauna biodiversity, and also supports institutions involved in the study and conservation of typical and unique ecosystems.

In 2019, a study of the biological diversity of the technogenic landscapes of MGOK was conducted in cooperation with the Professor Alekhin Central Black Earth State Biosphere Nature Reserve.

The study revealed that the area of overburden rocks has a diverse complex of ecotopes suitable for various living species. In addition, a species inventory of representatives of flora and fauna was performed in the territory of MGOK as part of the study. Many rare species of animals and plants were found in the area of study, including those from the Red Book of the Kursk region and Russia. In total, 54 representatives of the flora and fauna included in the Red Book of the Kursk region and 12 representatives of the Red Book of Russia were discovered. Another 16 species of the plant and wildlife previously unavailable in Kursk region were discovered.

The results of the assessment of the biological diversity of the flora and fauna of the technogenic landscapes of MGOK allow concluding that the reviewed territory is suitable both for typical and rare species of biota. The resulting data are the basis for further environmental monitoring in terms of biodiversity conservation.

Moreover, in 2019, LGOK performed the development of methodological basic aspects of continuous monitoring of the current state and dynamics of the Yamskaya Steppe nature reserve located near the enterprise. As part of this work, monitoring was performed to assess the impact of the LGOK activity on the ecosystems of the reserve and the effectiveness of dusting reducing measures.


The nature of industrial processes at Metalloinvest plants (LGOK and MGOK) determines the need for tailing dumps – hydraulic structures to store ore processing waste


The Company’s tailings dumps are designed and constructed by specialised organisations. All design documentation, including development plans, have passed all necessary state expert appraisals. The construction, reconstruction and operation of tailings dumps is carried out in strict compliance with the requirements of Russian laws, under the supervision of design developers and state control. Safety declarations for hydraulic engineering facilities of tailings dumps have been developed and agreed with federal executive authorities. The Company applies a systematic approach to ensure the safety of its tailings dumps at all stages of their life cycle in accordance with Russian legislation and corporate standards. To ensure operational reliability, industrial and environmental safety of tailings, the Company has introduced the monitoring and control system, and developed a set of regulatory documents and technical measures. Metalloinvest enterprises appointed technical managers and established separate units responsible for the safe operation of hydraulic engineering structures of tailings and their timely monitoring and supervision. Visual examination is performed using monitoring and measuring devices. In total, about 1,050 devices are used to monitor the tailings dumps of LGOK and MGOK. In addition, the technical condition of storage dams is inspected in the course of multilevel control by state, design and expert organisations:
  • On-site supervision of design developers of hydraulic engineering facilities
  • Supervision by Rostekhnadzor (Federal Service for the Supervision of Environment, Technology and Nuclear Management) – weekly to annual
  • Comprehensive annual checks of hydraulic engineering facilities regarding spring flood preparations involving Rostekhnadzor, the Ministry of Emergency Situations of Russia (EMERCOM), municipal, expert and design organisations.

The tailings dumps management is performed by highly skilled personnel. All employees have passed necessary certifications and OHS training. Metalloinvest hold regular emergency response drills regarding potential incidents at hydraulic engineering facilities.


The level of the production energy efficiency has a significant impact on the companies’ competitiveness and their environmental impac t. That is why Metalloinvest sees the reduction of the energy cons umption and improvement in the energy efficiency as one of its key acti vities


The Company implements special programmes and projects solving energy efficiency improvement tasks as part of the comprehensive development programmes of the enterprises. It should be noted that all Company’s enterprises underwent ISO 50011 Energy Management certification and comply with international energy efficiency requirements.

This activity is coordinated by the Company’s Department of Energy as part of the regular interaction with business units and strategic advanced meeting between the energy departments of the companies.

Striving to improve the energy efficiency of its enterprises, the Company supports active introduction of advanced solutions ensuring high energy and resource efficiency in different economic sectors and uses best practices. Metalloinvest cooperates with industry ministries and departments on energy efficiency as a member of multiple communities and associations including:

  • Working groups under the Ministry of Energy of the Russian Federation and the Federal Anti-Monopoly Service of Russia;
  • Association of organisations in the field of gas engine fuel “National Gas Engine Association”;
  • Russian Union of Entrepreneurs and Industrialists;
  • Russian Steel Association;
  • Community of Energy Consumers.


In 2019, Metalloinvest developed and approved the Comprehensive Programme for Production Energy Efficiency Improvement. The programme is aimed at reducing energy consumption and its costs, as well as improving environmental security and safety of production. The analysis showed that the programme covers the main solutions available or implemented today at the production facilities in Russia and globally.

The implementation of the programme measures will allow the Company to reduce the cost of energy resources by 5%, electric power consumption — by 8%, gas — by 8%, fuels and lubricants — by 50% by 2025 1 .

1 As the base period, the fact of 2017 was taken.