Home / Press Releases / Sber will provide USM Group with USD 620 million for the construction of HBI plant in Kursk region

Sber will provide USM Group with USD 620 million for the construction of HBI plant in Kursk region

Press Releases
127
0

Sberbank and the Mikhailovsky HBI Company (MGBZH), created by the USM Group and Mikhailovsky GOK named after A.V. Varicheva (part of Metalloinvest), signed an agreement on strategic cooperation on the construction of a plant for the production of hot briquetted iron (HBI) in the Kursk region.

Document within the framework of the St. Petersburg International Economic Forum (SPIEF) signed by Deputy Chairman of the Board of Sberbank Anatoly Popov and CEO of USM Ivan Streshinsky.

The Bank intends to open a credit line for Mikhailovsky HBI in the amount of up to USD 620 million for a period until December 31, 2034, and will also organize a documentary line for the purpose of opening letters of credit for settlements, high-quality high-tech banking services, and analytical and informational support within the framework of the project.

“I am pleased to expand our cooperation with the USM Group and Metalloinvest. Our agreement is aimed at implementing a large-scale investment project in the field of green metallurgy. This is especially important in the framework of the implementation of ESG approaches by Russian companies in their work. We, as a bank, are ready to support such initiatives of our clients in every possible way, ”Anatoly Popov noted.

“We highly appreciate the partnership with the largest Russian bank in the implementation of an important project for the mining and metallurgical industry,” noted Ivan Streshinsky. “Mikhailovsky HBI will work in close technological cooperation with Metalloinvest, the largest producer of commercial HBI in the world market, and will strengthen Russia's position as the world's leading supplier of raw materials for sustainable steel production chains.”

Mikhailovsky HBI (55% owned by USM, 45% owned by Mikhailovsky GOK) is implementing a project to build one of the world's largest and most modern HBI plant in the Kursk region. The production capacity of the plant will be more than 2 million tons per year.

The new production is scheduled to start in the first half of 2024. The volume of investments in the construction of the plant is estimated at over 40 billion rubles. About 400 highly qualified jobs will be created in Zheleznogorsk.

For reference:

The use of HBI is one of the most promising trends in the development of world metallurgy. The demand for HBI is increasing due to an increase in the demand for metallized raw materials for the production of high-quality electric steel, a decrease in the quality of scrap metal and stricter environmental requirements. The main drivers of demand are the increased production of electric steel, especially in Europe and China.

According to experts, global steel production in 2030 will increase by 17% by 2020, to more than 2 billion tons. More than 95% of the increase will come from steel smelting in electric furnaces. Global consumption of hot briquetted and direct reduced iron is projected to grow by 17% in 2030 by 2020, to 124 million tonnes.

HBI is similar in composition to cast iron and is used as an additive to scrap metal in steel smelting, but, unlike scrap metal, it practically does not contain third-party harmful impurities.

HBI contains more than 90% iron, has a constant chemical composition, and has a metallization degree of more than 93%. HBI is produced by direct reduction of iron in oxidized iron ore pellets: they enter a furnace, in which iron reduction reactions take place under the influence of a reducing gas consisting of a mixture of carbon monoxide and hydrogen. In the hot state, the reduced pellets are fed to roller briquette presses, where briquettes are formed under high pressure at a temperature of the pressed material of about 700 ° C.

In comparison with the production of pig iron, energy consumption and greenhouse gas emissions in the production of HBI are 50% less.

HBI allows you to smelt steel, which is necessary for the most demanding industries in terms of its quality - automotive, hardware and bearing. Due to the homogeneous composition of HBI, the steel produced with its use is distinguished by the purity of the alloy.

МЕТАЛЛУРГПРОМ
Partner news
Сomments
Добавить комментарий
Комментарии (0)
To comment
Войти с ВК Войти с ФБ Войти с Яндекс
Sign in with:
Войти с ВК Войти с ФБ Войти с Яндекс