Metalloinvest, a leading global producer and supplier of HBI and iron ore products, and a regional producer of high-quality steel, has signed a binding agreement with the company Ultramar for the construction of a specialised terminal for the transfer of iron ore pellets and HBI at the Ust-Luga port, located in the Leningrad region.
The signing took place at the Saint Petersburg International Economic Forum in the presence of Andrey Varichev, CEO of Management Company Metalloinvest. The document was signed by Vakhtang Kocharov, Executive Director of Metalloinvest Trading AG, and Andrey Bonch-Bruevich, CEO of Ultramar.
2.5 mn tonnes of transfers will take place per year. The contract is valid for five years on a take-or-pay basis.
Ultramar will finance the construction of the terminal using its own and raised funds.
Construction of the terminal will be completed by the middle of 2020. Railway tracks, storage facilities and Panamax docking areas for incoming ships will also be built. Mechanical pellet cleaning and shipping transfer of HBI will take place at the terminal.
Vakhtang Kocharov, Executive Director of Metalloinvest Trading AG, said: “As the leading producer of high-quality iron ore raw materials, HBI and pellets, Metalloinvest aims to satisfy the growing global demand for these products. The construction of a new terminal in Russia on the Baltic Sea strengthens the Company’s export potential.”