MMK increases construction cost of environment facilities The Magnitogorsk Iron and Steel Works overlooks the environmental management in the 1H, 2011

Due to commissioning of metallurgical slag processing facilities and their reaching design capacity the usage volumes of the wastes have significantly increased in comparison with the first half of the last year.

Thus, in the first six months of 2010, MMK has processed 4 million tons of slag furthermore, in 1H 2011 it has already processes 5.76 million tons (44% growth).

As a result of slag processing the company received nearly half a million tons of the metal share which was returned to the metallurgical production. In addition, consumers got 878k tons of granulated and gravel slag; more than 4.6 million tons of waste and slag was used for reclamation of Magnetic Mountain waste pits, over 1.27 million tons of industrial waste were used in agglomerate shaft of ore-dressing plant.

In the first 6 months of 2011 MMK’s capital expenses on new construction and renovation of existing environmental projects amount to 1.3 billion rubles (179.8 million rubles were spend in the corresponding period last year). Most of these funds, 845.5 million rubles were directed to the construction of the environmental facilities including LPC-11 air protection facilities of the mill complex 2000 and water recycling systems department.

In total in 1H, 2011 MMK has spent 1796 million rubles for the environment protection activity (compared to 2010, when the company spent 625 million rubles).