Annual report 2007 - Magnitogorsk Iron & Steel Works ...

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MMK’s production and business performance is directly linked with supplies of raw materials, which prompted
MMK to set up an efficient purchasing system.
In 2007 MMK purchased the bulk of its iron ore and coal on the free market.
In the future, MMK intends to create its own iron ore and coal supply base.
Iron Ore Raw Materials (IORM)
The larger part of MMK’s requirement for IORM is met by supplies from the Sokolovsko-Sarbaisky Group’s
deposits (SSGPO) located not far from MMK (330 km).
In 2007 MMK signed a 10-year contract for the supply of iron ore raw materials from this deposit, which will
provide for a stable supply of 12 million tons of IORM per year and cover MMK’s needs for 82.5% of sinter and 93%
of pellets.
Iron Ore Concentrate Supplies
in 2007
Tukansky RU 0.7%
Bogoslovsky RU 3.7%
Bakalsky RU 5.3%
Mikhailovsky GOK 3.2%
Stolensky GOK 1.7%
Other 1.6%
Kovdorsky GOK 1.3%
Kostomuksha
GOK1%
SSGPO
82.5%
LebGOK 6%
SSGPO 93%
Pellets Supply
in 2007