Yenakiieve Steel initiates cost-saving PCI project

Yenakiieve Steel (ENMZ UK) started construction of a pulverized coal injection unit (PCI), the company reported yesterday. The aim of the project is to fully substitute natural gas and partially replace coke consumption in pig iron production. The construction of the facility, with a capacity of preparation 590 kt of PCI coal, is expected to be finished at the beginning of 2014. Projected CapEx is USD 116 mln.

Roman Topolyuk: Yenakiieve Steel will be the second steelmaker of Metinvest (METINV), after MMK Illicha (MMKI UK), to implement cost saving PCI technology. At current prices for natural gas, coke and PCI coal, we estimate savings around USD 46/t of produced pig iron or USD 108 mln for the annual production of 2.3 mmt of pig iron. The project will also have a positive effect on Metinvest’s bottom line – the estimated savings represent 15% of net income posted by Metinvest in 1Q12 (USD 170 mln) or 6% of 2011 net income (USD 1,854 mln).