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Metinvest to Increase Production of DR-Pellets: How the Modernization of Northern GOK Will Change the Market

«Підвищення обсягів виробництва DR-пелет: як вдосконалення Північного ГЗК вплине на індустрію»

Modernization of Northern GOK Production

Metinvest Group is launching a program to increase the production of DR-pellets through the modernization of the production facilities of the Northern Mining and Processing Plant (GOK). This program includes the construction of new facilities and the reconstruction of existing technological lines, which will significantly enhance production volumes.

Modernization Projects

The first project within the modernization will be the construction of a flotation and upgrading complex. The second project is the reconstruction of the LURGI 552-A technological line. As part of these activities, Metinvest Sitchstal signed a contract with Primetals Technologies on December 1, 2025. The completion of the first stage of modernization is scheduled for the end of 2026, after which the production of about 4 million tons of DR-pellets per year is planned.

The concentrate from the Northern GOK has an iron content of no less than 70% and impurities of no more than 2%. Serhiy Pavlysh noted that

'the concentrate from the Northern GOK has good potential for quality improvement. After enrichment using flotation technology, we will be able to obtain a product with an iron content of no less than 70% and minimal impurity content – silicon and aluminum oxides of no more than 2%.' Serhiy Pavlysh

Moreover, at the design stage, the use of modern energy-saving technologies will be envisaged. Andriy Panchenko noted that

'the new technological process management system will allow us to reconfigure the line for the production of any of these types of pellets.' Andriy Panchenko

Rinat Akhmetov's investment in modernization exceeds 28 billion hryvnias since February 24, 2022, indicating the company's serious intent to strengthen its market positions.

The modernization of the Northern GOK is an important step for Metinvest in the context of growing competition in the iron ore product market. Increasing production capacities and implementing the latest technologies will allow the company not only to increase production volumes but also to improve product quality, which could positively affect its positions in Ukraine and beyond. Given the significant investments, the company demonstrates a long-term development strategy that may lead to increased competitiveness on a global scale.