SUSTAIN­ABIL­I­TY REPORT 2020

In 2020, Metinvest continued to develop and implement energy efficiency projects. This contributed to an increase in energy saving by 7% year-on-year, including increase in electricity saving by 5% year-on-year. The main savings came from Azovstal, which generated an additional 54 million kWh of electricity internally after repairing the turbine at its power station that produces electricity and compressed air for blast furnaces, thereby reducing the need for third-party purchases. An additional improvement in electricity saving came from Ilyich Steel optimising the cut of slabs at its
hot strip mill 1700.

In 2020, the Group spent US$8.2 million on energy efficiency programmes, up US$1.3 million year-on-year. In addition, it signed an agreement with YASNO Energy Efficiency (YASNO) to continue implementing the energy efficiency projects at Metinvest’s assets. In the reporting period, we worked with YASNO to implement five energy service projects. They included the upgrade and replacement of the lighting systems at Ilyich Steel and Northern GOK, as well as the installation of a new compressor station at Central GOK’s Ordzhonikidze mine.

In 2020, Metinvest made progress on several key projects to reduce air emissions, including modernising gas treatment systems and units, blast furnaces and the aspiration systems of basic oxygen furnace (BOF) shops.

We also completed the initial scope of the environmental modernisation at Ilyich Steel’s sinter plant, which took seven years. After the gradual commissioning of all new filters of the gas cleaning equipment at sinter plant, we expect to reduce dust emissions by 90% and sulphur dioxide emissions by 46%. In 2020,
Ilyich Steel also built new gas cleaning facilities for the casthouse and stockhouse of blast furnace no. 3, which will further reduce dust emissions.

At Azovstal, the Group completed the modernisation of the aspiration system for the mixer department in the BOF shop. Northern GOK began replacing the gas cleaning facilities of its Lurgi 552-A roasting machine. Kryvyi Rih Machining and Repair Plant replaced the bag filters in the gas cleaning system for furnace no. 6. Avdiivka Coke finished assembling the gas cleaning equipment in the area of line no. 4 of the crystallisation department of its phenol and naphthalene production facility. Metinvest continued to implement a systematic programme of major maintenance on the coke furnace chambers at Azovstal,
Avdiivka Coke and Zaporizhia Coke.

Metinvest carefully monitors the quality of water resources that are used and withdrawn by its assets. It is vital to ensure that our impact on water resources is within the boundaries specified in environmental standards. We monitor our impact and regularly modernise our laboratories to ensure the accuracy of our measurements.

The Group’s production assets use fresh and salt water from surface and ground water sources and utility systems. We do not consume water from areas undergoing water stress.

In 2020, Metinvest’s systematic efforts to improve and mitigate its impact on water resources, increase operating efficiency and ensure proper maintenance resulted in a share of reused and recycled water withdrawn from all sources, including previously recycled, of 81%, up one percentage point year-on-year. In 2020, the Group reduced the total volume of water intake and discharge by 4% and 3% year-on-year, respectively.

Another positive factor was the ongoing investment programme, which included installing a new cooling system at Azovstal’s blast furnace no. 3 and performing capital overhauls of Avdiivka Coke’s recycled water supply systems.

Metinvest strives to minimise the volume of waste that it generates, as well as maximise its reuse and recycling, through the production of crushed rock, replacement of iron ore raw materials, and the construction and repair of roads.

The Group deposits its waste only in specially designated areas, such as slagheaps and tailings, slag and sludge storage facilities. We closely monitor the long-term safety of such places, carrying out regular internal and external inspections.

In 2020, Metinvest generated 255 million tonnes of industrial waste from production, 97% of which was non-hazardous, mostly overburden and tailings from the iron ore producers.

The volume of recycled waste was 24%, down 4 percentage points year-on-year. This decrease is the result of two factors. First, more intensive utilisation of slag products from the Mariupol steelmakers and a higher volume of construction waste at Northern GOK in 2019. Second, greater iron ore production in the reporting period.

An integral part of Metinvest’s activities is the complete restoration of disturbed lands as a result of its mining operations and biodiversity conservation.

In 2020, Ingulets GOK performed various work at its tailings storage facilities using fertilisers and rapeseed, planting 7,000 young acacia, ash, mulberry and pine trees, and more than 100 kilogrammes of field, pasture and nectar-bearing grass seeds.

To support an environmental protection programme by the city of Kryvbas over 2016-25, Northern GOK planted 20,000 young trees as part of a landscaping project covering 10 hectares in the sanitary protection zone of Pervomaiskiy open-pit mine.

Central GOK planted 900 trees and shrubs and used overburden to conduct mine restoration work at depleted deposits in open-pit mine no. 2.

Metinvest continued to support and develop the territory of the Vizyrka nature reserve. In 2020, Ingulets GOK built a paved road to open-pit mine no. 3 in the reserve and released 3,000 juvenile carp into the open-pit mine lake. In the summer and autumn, clean-up work involving volunteers from NGOs and city residents was organised in the area.