Severstal budgets $1.7B capex this year

RUSSIAN-headquartered steelmaker and mine owner Severstal says it will invest $US1.7 billion in 2012 as it seeks out new opportunities and improves the operations and safety of its mines.

Donna Schmidt

“Severstal’s investment priorities for 2012 include further modernizing and improving … operations, raising standards of health and safety and developing new projects both in Russia and internationally,” the company said on Monday.

Specifically, Severstal said it would earmark $659 million for Severstal Resources for key projects including the modernization of its coal and iron ore mines as well as ore-dressing plants and coal preparation facilities.

It will also install new equipment and commission a thermoelectric power station to burn coal mine methane in Vorkuta.

Greenfield project developments for the Tuva complex in Russia, Liberia and Brazil will also be developed under the budget.