The construction of a separating dam at Magnitogorsk Reservoir, part of rebuilding processes of Magnitogorsk Iron and Steel Works’ (MMK) circulating water supply system, is entering its final stages. The project, at a cost of approximately RUB 660 million, will significantly reduce the environmental burden on the reservoir.

This is one of MMK’s most important initiatives with regards to protecting the surface waters of the Magnitogorsk Reservoir and the Ural River. It will reduce the volume of discharged pollutants by a factor of 7 as well as the volume of discharged water by a factor of 11: from 52,000 cubic meters per hour to 4,500 per hour. As a result, the Magnitogorsk reservoir will be maximally isolated from the impact of MMK’s water supply system. The project provides for an increase in the volumes of recycled water supply due to the transfer of CHP and Oxygen Station No. 4 recycling processes to the cooling tank area.

A key element of the rebuilding process is the construction of a separating dam in the Magnitogorsk Reservoir area, between the Cossack crossing and the Southern junction. At the present time, the dam has been almost completed, construction work on the water outlet from the warm-water CHP channel to the reverse part of the storage tank has been finalised, as well as the construction of a retaining concrete wall under the South Bridge. Measures are being taken to strengthen the dam's shore and build an inspection road as well as turnout sites. Preparatory work on the construction of a culvert, consisting of three pipelines with a diameter of 1,200 mm and 1,400 mm has been completed. These pipelines, located in the lower part of the dam to feed the water recycling supply system from the Magnitogorsk Reservoir, will be equipped with fish protection devices and monitoring equipment. In the near future, work will begin on the construction of a water outlet to the Magnitogorsk Reservoir with a discharge regulation system, at the site of the existing outlet near the Cossack crossing. Completion of the dam is planned for October 2018. The hydraulic structure has an intended lifespan of 50 years.

Following the completion of construction, measures will be taken to landscape the dam and launch fish into the Magnitogorsk Reservoir. The issue of selecting specific trees and shrubs for the ‘green’ development of the dam was discussed by the residents of Magnitogorsk. According to the results of a survey that was taken, about 1,200 responses were received through MMK’s internal corporate portal and more than 1,600 responses were received through a questionnaire on the Google Forms website. The highest number of votes were received by the Hungarian Lilac (56.5% of votes) and the Purple Willow (54.8% of votes). Considering the results of the survey, Magnitogorsk Gipromez will develop project documentation on landscaping plans.

The implementation of the project "Reconstruction of the water recycling supply system of PJSC MMK with the expansion of the cooling tank", along with ongoing beach improvement activities, will significantly improve the water quality in the Magnitogorsk Reservoir and, as a result, allow the use of the reservoir for recreational and fishing purposes. Additionally, a project to launch carp fry into the flowing part of the Magnitogorsk Reservoir, in agreement with the Nizhneobsk Territorial Administration of the Federal Agency for Fisheries, responsible for the Ural River, is in development.

About MMK

MMK is one of the world's largest steel producers and a leading Russian metals company. The company's operations in Russia include a large steel-producing complex encompassing the entire production chain, from the preparation of iron ore to downstream processing of rolled steel. MMK turns out a broad range of steel products with a predominant share of high-value-added products. In 2017, the company produced 12.9 million tonnes of crude steel and 11.6 million tonnes of commercial steel products. MMK Group had sales in 2017 of USD 7,546 million and EBITDA of USD 2,032 million.

Investor contacts:
Andrey Serov
tel.: +7 (3519) 24-52-97
E-mail: serov.ae@mmk.ru
Media contacts:
Dmitry Kuchumov
tel.: +7 (499) 238-26-13
E-mail: kuchumov.do@mmk.ru
Dmitry Bulin
tel.: +7 (499) 238-26-13
E-mail: bulin.dn@mmk.ru