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Presentation - Severstal

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Strong Mining Platform for Future Growth: Tyva Coal Project<br />

Project highlights:<br />

License:<br />

90km 2 , metallurgical coal deposit.<br />

Resource:<br />

Location:<br />

A+B+C 1 reserve estimate of 639 million<br />

tonnes of high quality grade “Zh” coking<br />

coal.<br />

The Republic of Tyva (Russia) on the<br />

border with Mongolia.<br />

Elegestskoe<br />

deposit<br />

Total CAPEX:<br />

Preliminary estimate $1.6-1.8 billion,<br />

plus railroad CAPEX up to ~ $1 billion.<br />

Centralniy deposit<br />

Potential production:<br />

Start of production: 2017 – 2018.<br />

Up to 10 million tonnes of coal concentrate<br />

per annum.<br />

Mezhegeyskoe<br />

deposit<br />

Current status and next steps:<br />

• Obtained exploration and mining license at the tender for $19.5 million.<br />

• Signed MoU to set up a consortium of OPK, Evraz and <strong>Severstal</strong> to develop the<br />

railroad infrastructure by 2014.<br />

• Drilling and feasibility study to be completed by approximately the end of 2013.<br />

20

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