Novolipetsk Steel : NLMK Group takes interim stock of its contribution to Federal Clean Air Initiative

NLMK Group's projects, implemented as part of the Clean Air Initiative, have significantly improved the quality of air in the city of Lipetsk. Emission reductions across the site's major sources exceeded the original plan by 2.5 times. This has secured Lipetsk's uninterrupted leadership as the cleanest steelmaking city in Russia since 2013. Its air-related environmental indicators are on par with cities that have no major industrial enterprises.

The Company implements Clean Air projects in accordance with an agreement signed in 2019 between NLMK Group, the Russian Ministry of Natural Resources, the Federal Supervisory Natural Resources Management Service (Rosprirodnadzor), and the Administration of the Lipetsk Region (the Agreement). The Comprehensive Action Plan to Reduce Air Emissions in Lipetsk comprises projects that aim to cut emission of 20 controlled substances by 21% vs. the 2017 baseline by 2026.

A total of 17 projects have been implemented since 2019, reducing emission by more than 20,000 tonnes, which is 12,500 tonnes (156%) above the target level specified in the Agreement. These results were enabled by such projects as an overhaul of two Blast Furnaces and two Basic Oxygen Furnaces, and construction of a new BF slag gravel processing facility. Around 40 dust and gas cleaning plants and dedusting systems were upgraded.

The Company's total investment in Clean Air projects stood at around RUB 115 billion over five years.

In 2024, the Company completely eliminated the hydrogen sulphide odour from NLMK Lipetsk sources and reduced the concentration of this substance in the air. The main remaining source of hydrogen sulphide odour in Lipetsk is the treatment facilities owned by the city's utilities. NLMK Lipetsk has achieved these hydrogen sulphide reductions due to a revamp of the BF-6 slag granulation plant, aggregation of coke oven gas recovery flows, and introduction of new slag processing techniques that prevent emission of hydrogen sulphide. The site invested more than RUB 10 billion in these projects.

The Company plans to further reduce its air impacts through construction of a Recovery Co-generation Plant (RCGP-2), replacement of air stoves at one blast furnace, and a project to remove dust and sulphur from gas in the Sintering Shop. These projects are to deliver a 14,000-tonne reduction in emission of controlled substances, which will enable NLMK to fully perform its obligations under the four-party Agreement.

The main requirement that the Company applies to its environmental projects is sourcing of equipment that conforms to the best available techniques (BAT) in Russia. In May this year, an independent scientific review by the Environmental and Industrial Policy Centre, a research institute, confirmed NLMK Lipetsk's compliance with BAT levels in production of pig iron, steel, ferroalloys and other products. The expert review has established that NLMK Lipetsk has achieved the BAT level that delivers the minimum possible impact on the environment and ensures high energy-efficiency in production operations.

About NLMK Group

NLMK Group is a vertically integrated steelmaking company and Russia's largest steel producer of steel products.

NLMK Group's steel products are used in various industries, from construction and machine building to the manufacturing of power-generation equipment and offshore wind turbines.

NLMK operates production facilities in Russia, Europe and the United States. The Company's steel production capacity exceeds 14.5 million tonnes per year.

For more information on NLMK Group, please visit our website.