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Metinvest Launches Large-Scale Investment Program for DR Pellets Production for Green Steel

Metinvest Launches Large-Scale Investment Program for DR Pellets Production for Green Steel

Metinvest Group has announced the launch of a large-scale program to expand the production of DR pellets and premium raw materials for pig iron output using direct reduced iron technology

The program includes the construction of a flotation upgrading complex to improve concentrate quality, as well as the reconstruction of the technological line of the LURGI 552-A pelletizing machine at the Northern Mining and Processing Plant.

On December 1, 2025, Metinvest Sichstal, the company implementing the Group’s strategic investment projects, signed a contract for the development of basic engineering with Austria-based Primetals Technologies. This will mark the first stage of the line’s modernization, which is scheduled to be completed by the end of 2026.

According to Metinvest, the global shift toward green metallurgy, the growth of electric arc furnace steelmaking, and changes in consumption patterns in China and the EU are driving strong demand for high-quality iron ore raw materials. To strengthen its competitiveness in global markets, the company plans to improve concentrate quality: following flotation upgrading, the product will have an iron content of at least 70% and a minimal share of silicon and aluminum oxides—no more than 2%—enabling the production of high-quality pellets.

The reconstruction of the LURGI 552-A technological line will allow Metinvest to enter the high-margin DR pellets market and manufacture products with enhanced characteristics that meet current market requirements. Upon completion of the program, annual production of approximately 4 million tonnes of DR pellets is planned, with the option to produce BF HQ-grade pellets.

“At the design stage, we incorporated the use of modern energy-efficient technologies, and the new process control system will allow rapid reconfiguration of the line to produce any type of pellets,” said project manager Andrii Panchenko.

Metinvest’s program not only aligns with global green metallurgy trends but also contributes to attracting investment into the modernization of production facilities, increasing exports of high-quality iron ore products, and strengthening the company’s position in global markets.

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