PRUDENT
CAPEX strategy

The Group’s investment projects are aimed at further developing its competitive advantages, while maintenance investments are focused on supporting the sustainability of EVRAZ’ operations.

Annual CAPEX breakdown by maintenance and development, US$ million
Ongoing investment projects
Project Effect Total CAPEX, US$ million Launch year Launch year means that facilities were built and started to operate, however stated capacity could not have been achieved that year
Construction of blast furnace 7 at EVRAZ NTMK Maintain the production of pig iron at EVRAZ NTMK at 5 million tonnes per year 191 2018
Regina steel and rolling upgrade Improve steel quality, increase capacity for casting by 110 kt and rolling by 250 kt, and result in a crown yield saving from 0.75% to 1.1% 147 2017
Construction of an LDP mill at Regina Expected to add 150 kt of tubular product capacity 73 2017
Grinding ball mill construction at EVRAZ NTMK Allow to increase ball production to 300 kt by 2018, supporting our position on this market 17 2018
  • Current investment projects are focused on efficiency improvement and selective product portfolio development.
  • Over the medium term, maintenance CAPEX may increase to support current capacities, like the construction of a new blast furnace at EVRAZ NTMK and higher CAPEX to maintain coking coal mining volumes.
Investment projects implemented in 2014-2016
Project Effect Total CAPEX, US$ million Launch year Launch year means that facilities were built and started to operate, however stated capacity could not have been achieved that year
Construction of Yerunakovskaya VIII coal mine Production of 3 million tonnes of raw coking coal 276 2014
Mezhegey project Additional capacity of 1.5 mtpa of hard coking coal (grade Zh under Russian classification) 148 2015
Evraz Caspian Steel (Vostochny rolling mill, Kazakhstan) Help improve EVRAZ’ strategic position on the CIS construction steel market 122 2014
Sheregesh iron ore mine expansion Decrease costs at Sheregesh mine by c. 50% and increase iron ore self-sufficiency at EVRAZ ZSMK 76 2015
Reconstruction of continuous casting machines (CCM) at EVRAZ ZSMK Increase production of existing billet caster by 80% to partially replace blooming mill volumes and improve efficiency 43 2015
  • Investment projects have been implemented with an aim to support EVRAZ’ leadership on the Russian coking coal market and to increase our presence on the CIS infrastructure steel market.