Annual report and accounts 2012
Vadim Larin CEO of Severstal Resources

“Our strong asset base enables us to capture excellent margins and generate significant free cash flow in strong markets, but it is also resilient enough to provide positive results even in the current weak markets. We are constantly improving these assets through a prudent investment programme geared towards reduction of fixed costs, increased labour productivity and lowcost brownfield expansion. We are also making structural improvements that bring immediate cost savings.

We believe safety is a priority, and feel responsible for the life and health of our workers.”

Vadim Larin
CEO of Severstal Resources

Severstal Resources manages all of Severstal’s mining assets, forming the basis of Severstal’s vertically integrated business model. It satisfies economically almost all the iron ore and hard coking coal requirements of Severstal Russian Steel and Severstal International divisions’ steel operations, while also selling increasing volumes to third parties on the market.

Severstal Resources mines iron ore and coking coal in Russia, and operates a coking coal complex in the USA. The coal businesses are among Russia’s top five coking coal producers, while the iron ore businesses are leaders by extraction volume in their respective markets.

We also have a balanced portfolio of prospective mining greenfields in Russia and beyond. The key focus for Severstal Resources in 2013 is cost control and debottlenecking with parallel growth in volumes.

Revenue in 2012 (US$ million)

EBITDA in 2012 (US$ million)