NLMK Group, Russia's leading manufacturer of steel and high value added rolled products has started hot testing of a unique environmental complex; a biochemical waste water treatment facility at coke and chemical operations at the Lipetsk production site.

Total investment into the project which was implemented as part of NLMK's Environmental Programme 2020 exceed RUB 2 billion.

From 2009, all industrial storm and waste water at the Lipetsk production site is contained in a closed-loop water cycle with multistage treatment to enable it to be reused in technological production processes. The new 160 m³/hour facility was designed using the best available technologies, and will provide a twenty-fold improvement in the quality of treatment of coke and chemical operations waste water for reuse in the closed-loop water cycle .

Sergey Filatov, NLMK Managing Director, said:

"NLMK Group's Lipetsk production site has achieved unprecedented results in the course of implementing the previous stages of its Environmental Programme: specific air emissions have been halved since 2000, while steel production has increased by 51%; and waste water discharge has been completely halted. But we are not going to stop at that and are continuing our ongoing efforts to reduce the company's environmental footprint as part of NLMK's Environmental Programme 2020. Our goal is to become the industry leaders in environmental efficiency. This project is yet another step towards achieving this goal."

The facility employs a custom technology developed by Russian scientists for deep biochemical water purification from phenols, rhodanides, ammoniacal nitrogen and its oxides (nitrites and nitrates) in one stage, whilst the previous technology required several stages. Elimination of these obsolete stages allows for up to 95% waste water purification from nitrites and nitrates.

All infrastructure and utilities were installed above ground on an isolated concrete area equipped with a rain, melt and drain water collector, preventing any chance of groundwater pollution in the event of a containment failure.

About Environmental Programme 2020

In May 2014, NLMK Groupannounced the launch of the third stage of its environmental programme, covering the period up to 2020 (Environmental Programme 2020). This programme is part of the Group's development strategy and investment programme. It is aimed at further minimizing our environmental footprint and achieving the best possible environmental standards in global steel production.

Investment in environmental initiatives and projects at NLMK Group companies will total RUB 10.6 billion. Most of the funds will be invested at NLMK's Lipetsk production site.

Environmental Programme 2020 will ensure:

·         compliance with all environmental standards by all enterprises of the Group;

·         reduction in specific emissions at NLMK's Russian sites from 22.6 to 19.4 kg per tonne of steel to comply with the level of the best available technologies in the global steel industry;

·         zero waste water discharge at all Group sites;

·         increase in waste recycling from 5% to 25%;

·         complete elimination of waste accumulated over previous years (in particular, the slag heap formed at the Lipetsk site over the last 80 years, and the sludge dump at NSMMZ (Revda) that has been there for over 40 years).

Results of NLMK's Environmental Programme 2007-2012 (Stage 2)

During Stage 2 of its Environmental Programme (from 2007 to 2012), the Group invested over RUB 21 billion in environmental projects. As a result, specific air emissions decreased by 40% (from 37.5 to 22.6 kg per tonne of steel), and waste water discharge was reduced by 54 times (from 1.08 to 0.02 kg/t). Waste water discharge at the Lipetsk site was completely eliminated in mid-2009.

About Novolipetsk (NLMK's main production site in Lipetsk)

Novolipetsk is the main production site of NLMK Group, Russia's leading manufacturer of steel and high value added rolled products, and one of the most efficient steelmaking companies in the world. Novolipetsk is the nucleus of NLMK Group's single production chain, with assets in Russia, the EU and the USA.

The history of the plant began 80 years ago with the launch of the first blast furnace. Since then, the plant has progressed significantly from a single blast furnace to a global steelmaking company.

Currently, the steel production volume of the Lipetsk site is in excess of 12 million tonnes per year, or approximately 18% of all steel produced in Russia, and approximately 80% of all steel products produced by NLMK Group.

Novolipetsk's high-quality steel products are used in various strategically important industries, from construction and machine-building to the production of energy equipment and large-diameter pipes.

About NLMK Group

NLMK Group is a vertically integrated steel company and Russia's leading steel maker and manufacturer of rolled products with high added value. NLMK's high-quality metal products are used in various industries, from construction and engineering to the manufacture of power-generating equipment and offshore wind turbines.

NLMK's production assets are located in Russia, Europe, and the United States. The Company's liquid steel production capacity is over 17 million tonnes per year, of which about 16 million tonnes are produced in Russia.

NLMK has the most competitive cash cost among global manufacturers; and one of the highest profitability levels in the sector. The Company generated $10.9 billion in revenue and $1.5 billion in EBITDA in 2013.

NLMK's ordinary shares are traded on the Moscow Stock Exchange (MICEX-RTS, ticker symbol: NLMK), and its global depositary shares are traded on the London Stock Exchange (ticker symbol: NLMK:LI).

Media contact info:

Sergey Babichenko
 +7 (916) 824 6743
babichenko_sy@nlmk.com

Investor contact info:

Sergey Takhiev
 +7 (495) 915 1575
tahiev_sa@nlmk.com

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