Interfax cited Mr Alexei Ugarov first deputy general director and chief of production at Metalloinvest Management Company as saying that Metalloinvest a major Russian iron ore and steel producer expects to maintain its investment program in 2012 at least at this year level of about RUB 14 billion.

He said that "This year Metalloinvest plans to invest about RUB 14 billion across all four operations. He added that of course, a great deal will depend on the situation on the markets, but I think that at the very least not less, and for now a program of more than RUB 14 billion across the holding is being considered."

Mr Ugarov said that in the first half of 2012 the company might sign a major contract for the construction of a third hot-briquetted iron line at Lebedinsky GOK.

Other priority projects he said include the construction of a No 3 induration machine at Mikhailovsky GOK and a concentrate drying facility at LGOK. In future, the company might move ahead with a project to produce hematite concentrate at MGOK.

Mr Ugarov said all of Metalloinvest steelmaking and mining divisions have reached 100% capacity. He said that "For November, we have a full workload for all enterprises. Prices are declining slightly, but capacity is full."

He said that starting in the third quarter, the company began to shift focus from exports to selling iron ore products to Russian customers, reportedly signing long term contracts with Novolipetsk Steel and Magnitogorsk Steel. The latter is currently buying about 200,000 tonnes to 250,000 tonnes of raw material from Metalloinvest per month.

In its steel division, the company plans to expand steel production at the OEMK plant to 3.85 million tonnes from the current 3.3 million tonnes per year and modernize the metallisation line. At Urals Steel, there are plans to build a degasser and overhaul coke battery No 6.

(Sourced from Interfax)