Statement from the CEO

Dear colleagues and friends,

In 2018, Metalloinvest retained its dominant position and continued the transformation process that aims to improve efficiency and sustainability.

We are committed to offering products of the highest quality and prioritising the safety and protection of employees. We utilise the best available technologies to reduce our environmental impact. We ensure a balance of interests among all stakeholders.

The Company’s strategic goal is to be a supplier of high-quality iron ore and metallised products that contribute to the world’s sustainable development.

Metalloinvest constantly increases the share of high value added products it manufactures, such as high quality pellets and HBI, thus enabling it to respond to such challenges as climate change. The higher the iron content and the fewer the impurities in iron ore raw materials, the lower the environmental impact is from steel production.

The Company’s top priority is occupational safety. Our goal of zero injuries remains unchanged. In 2018, we continued taking steps to enhance the organisation of production, improve the occupational safety system and provide training and increase awareness of employees.

We should acknowledge that the Company was unable to avoid accidents during the reporting period.

The Company will continue to do everything it can to prevent accidents, adopt best practices and technologies and develop a culture of responsibility among employees to ensure their safety.

Metalloinvest’s transformation focuses on developing the potential of its employees. Our educational programmes encompass a wide range of disciplines – from the in-depth study of business processes to environmental safety and waste management. The Company concentrated on developing its talent pool programme in 2018. The programme aims to train management personnel from most promising Metalloinvest employees. In 2018, a single talent pool was established for all the Company’s enterprises. In addition, we continued our extensive collaboration with specialised higher and secondary educational institutions.

Metalloinvest is always on the lookout for the most optimal solutions to minimise its impact on the environment. In 2018, the Company continued work to modernise its enterprises, improve energy efficiency, preserve biodiversity and reclaim land.

Our work in environmental protection and occupational safety has received a high independent rating. In 2018, for the first time, Metalloinvest received Silver Level of EcoVadis Business Sustainability Ratings. The Company was ranked among the top 11% of the world’s best producers of metal resources and steel.

We continue to develop regions where we operate in partnership with government, non-for-profit sector and local community. Metalloinvest’s initiatives aim to develop urban infrastructure, education, health, culture and sports. We believe that sustainable development will ensure Metalloinvest’s long-term competitiveness and productivity.

Yours faithfully,
Andrey Varichev
CEO
of Management Company Metalloinvest