CAPEX and Key Projects

In 2018, EVRAZ capital expenditures fell to US$527 million, compared with US$603 million a year earlier, as EVRAZ NTMK finished implementing two main projects, the construction of blast furnace No. 7 (first pig iron was obtained in Q1 2018) and the grinding ball mill (first ball was produced in Q1 2018), amid the weakening of the rouble exchange rate against the US dollar. EVRAZ North America also started to implement two projects to reduce costs that are scheduled to be completed in 2019.

Capital expenditures (including those recognised in financing activities) for 2018 in millions of US dollars can be summarised as follows.

Capital expenditures in 2018, US$ million
Steel segment
Blast furnace No. 7 construction at EVRAZ NTMK
The project aim is to maintain stable pig iron production volumes during the capital repair of blast furnace No. 6 in 2018-19.
48
Wheel resurfacing capacity expansion at EVRAZ NTMK
The project aim is to expand wheel resurfacing capacity to balance production capacity in 2019-22 and increase production volumes.
10
Grinding ball mill construction at EVRAZ NTMK
The project aim is to construct a new grinding ball mill that can make the grinding balls of hardness category five.
5
Steel, North America segment
EVRAZ Pueblo seamless threading
The project aim is to in-source seamless threading and coupling process from third-party providers to improve cost competitiveness.
15
EVRAZ Red Deer heat treatment The project aim is to develop heat treatment capability to access a higher margin market. 13
Coal segment
Access and development of reserves in the Uskovskaya mine’s seam No. 48
The project aim is to prepare the reserves in seam No. 48 for mining.
20
Access and development of reserves in the Esaulskaya mine’s seam No. 29a
The project aim is to relocate mining operations from seam No. 26 to seam No. 29a.
5
Other development projects 51
Maintenance 360
Total 527