MMK obtains approval for two more joint implementation projects under the Kyoto Protocol

Russian Economic Development Minister Elvira Nabiullina signed off on a list of projects that qualify for implementation under Article 6 of the Kyoto Protocol, including two projects being run by Magnitogorsk Iron and Steel Works:

MMK is introducing electric arc furnace (EAF) production of slab steel, and upgrading agglomerate production and load-feeding at its blast furnaces. EAF production will reduce CO2 emissions by 1.2 million tons in 2008-2012, while upgrading agglomerate production and load-feeding by installing bell-less top loading equipment will reduce greenhouse-gas output by a further 600,000 tons over the same period. MMK’s partner for the projects is Carbon Trade & Finance, which will act as the buyer of all emission reduction units (ERUs) generated and provide project development services.

In total, MMK has now obtained approval for three joint implementation projects, making it the leader among Russian steelmakers, thanks to its overhauls of its production facilities. Previously the Economic Development Ministry also granted joint implementation status to the company's arc furnace steelmaking project.

Implementation of the three projects will significantly reduce MMK’s environmental footprint, with emissions set to decline by 7 million tons of CO2 over 2008-2012.

As an investor in joint implementation projects, MMK has the right to sell ERUs to European companies falling outside their emissions quotas.

MMK will reinvest all revenue from joint implementation projects into green production, and is working closely with the Russian Environment Ministry and Economic Development Ministry.