Development of product portfolio and customer base

Securing the position as a major coking coal supplier in Russia

Key developments in 2017

  • Consistent product quality helped to retain Russian market leadership;
  • Production volumes rose;
  • Investments to expand and overhaul production facilities helped to boost output of saleable products;
  • Open-pit mining was launched at the Raspadskaya-Koksovaya mine site;
  • Coal mining was resumed at the Raspadskaya mine’s production seam no. 6;
  • Investments into the new flotation equipment at the third section of Raspadskaya’s beneficiation plant helped to improve product quality.

Outlook for 2018

  • Maintain leading positions on the Russian market by keeping product quality consistent;
  • Improve reliability of deliveries;
  • Increase premium low vol. HCC production volumes;
  • Boost saleable products volume to c. 18 million tonnes by increasing mining volumes at the Raspadsky open-pit with additional equipment, as well as increasing mining efficiency at other assets;
  • Launch flotation at Raspadskaya’s first and second sections (full +1.5% yield effect from 2019).

Increase sales to Ukrainian market

Key developments in 2017

  • Maintained sales volumes to Ukraine.

Medium-term outlook

  • To increase annual sales to Ukraine.

Expansion of the export portfolio

Key developments in 2017

EVRAZ achieved its targets for 2017 export sales by:

  • Maintaining a flexible sales geography:
    • Export priorities: Ukraine, Japan, South Korea, and Vietnam;
    • Entering new markets, like Indonesia, and expanding geographical diversity within Europe;
    • Sending some volumes to China via spot contracts;
  • Conducting site visits for new clients and regular audits at the request of key customers.

Coking coal export volumes to countries in South-East Asia exceeded 4.3 million tonnes (up 25% year-on-year). Additionally, exports to Turkey and other European countries increased by 1 million tonnes (a six-fold increase).

Outlook for 2018

  • Ensure a diverse sale geography by seeking new supply routes from Baltic Sea ports;
  • Increase export sales to South-East Asia and European countries.