Page 153 - RusRPTJan21

o On the Turkish market, MMK is ready to consider selling MMK Metalurji if an appropriate price is offered. By end-2020, the plant’s EBITDA will amount to $30mn – next year this figure will increase. The growth in steel demand in Turkey can accelerate the launch of the rolling facility in Turkey, which may lead to increase in the Turkish asset’s EBITDA to $75-100mn
Projects update – The key future projects include:
o A coke and by-product plant, which is expected to launch in 2022-23 and to add $55mn to EBITDA and 2.5mt to coke output
o A new blast furnace, which will increase pig iron output by 0.4mt and add $120mn to EBITDA – expected to launch in 2025
o An air separation unit, which will add 0.1mt to steel production and $30mn to EBITDA – expected to launch in 2021-23
o Increased self-generation of electricity planned for 2022-26 and expected to add 175MW to own electricity capacity. By 2026, the company plans to increase self-sufficiency in electricity to 83%
o A new tin, cold-rolling and galvanizing facility, which will add 0.4mt of premium products to the company’s capacity and $110mn to MMK’s EBITDA – expected to launch in 2022-26
o An upgrade to BOF capacity, which will add 1mt to steel capacity and increase the company’s EBITDA by $70mn – planned for 2023-25
Other remarks – MMK confirmed it remains committed to its current dividend policy. Separately, the company’s main shareholder Viktor Rashnikov is ready to increase the company’s free float when he is satisfied with its MCap.
● Other
Norilsk Nickel​ hosted its capital markets day on December 1 with a focus on its ESG and the revamp of Nornickel's environmental strategy.
In addition to a capex guidance update for the ongoing Sulfur Project (from $3.5 bln to $3.6 bln by 2025), Nornickel announced goals to stay in the bottom quartile of global mining companies in carbon emissions per nickel unit and to maintain a low total GHG emissions intensity. Another important strategic focus will be the elimination of legacy pollution, including the dismantling of abandoned buildings and structures, metal waste management and recycling, and sanitary
153 ​RUSSIA Country Report​ January 2021 www.intellinews.com