Metinvset boosted capex 66% in H1 2017
Metinvest B.V. (the Netherlands), the parent company of the Metinvest mining and metal group, boosted capex by 66% year-on-year, to $193 million.
According to an unaudited consolidated financial report, the expenditure on maintenance projects accounted for 89% of total investments (64% in H1 2016) and on expansion projects for 11% (36%). The metallurgical segment accounted for 37% of capital expenditure (53% in H1 2016) and mining for 61% (46%).
One of the key strategic projects in the metallurgical segment is the ongoing construction of continuous casting machine No. 4 at Illich Steel in Mariupol. The active stage of construction began in September 2016 and launch is expected in late 2018. Azovstal is continuing construction of pulverized coal injection facilities at its blast furnaces.
Metinvest continued to implement projects in the mining segment, the largest of which is the construction of the crushing and conveying systems at Pivnichny Mining's Pervomaisky open-pit mine and Inhulets Mining (the Skhidna conveyor line). In addition, the replacement of gas cleaning units on Pivnichny Mining's Lurgi 552-B pelletizing machine is ongoing.
Metinvest Group's principal shareholders are System Capital Management with 71.24% and Smart-Holding with 23.76%.