Metinvest prospectively reduces capital investments by 40% in 9 months
Metinvest B.V. (the Netherlands), the parent company of the Metinvest mining and metallurgical group, in January-September 2020 reduced capital investments by 40% compared to the same period in 2019 - to $460 million.
Investment cuts were planned, according to Thursday's preliminary unaudited interim financial results for the nine months of 2020.
"In line with the Group's 2020 CAPEX priorities for critical asset maintenance and the completion of ongoing strategic investment projects, investments in maintenance and repairs decreased by 39%, while investments in strategic projects were reduced by 43%, which brought their share in the total volume of capital investments to 67% and 33%, respectively, in January-September 2020 (65% and 35% in the nine months of 2019)," the report says.
At the same time, it is noted that Metinvest has made progress in the following key strategic projects: modernization of the 1700 mill at the Mariupol-based Illich Iron and Steel Works (equipment tests are ongoing; a new coiler was installed and the production of the first coils was carried out in November 2020); construction of an air separation unit at the Illich plant; modernization of concentrating equipment at Central Mining and Processing Plant (MPP) (completed in March 2020); construction of a cyclic-flow technology at the Northern MPP (the second stage for transporting rocks) and Inhulets Mining (InGOK, Kryvyi Rih, Dnipropetrovsk region) (Skhidny tract); and completion of the first stage of modernization of the OK-306 roasting machine at Pivnichny MPP.
"A special priority in 2020 is given to the environmental agenda, in which the main current project is the reconstruction of the sinter plant at the Illich plant, which is expected to be completed next year. Many other initiatives have also advanced this year, including the reconstruction of the gas treatment facilities of the casting yard and the bunker rack of blast furnaces. No. 3 at the Illich plant (completed in March 2020) and converters No. 1 and No. 2 at the Azovstal Iron and Steel Works (basic and detailed engineering and technical documentation is being developed)," the document says.